ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
Delaware | 80-0962035 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification | ||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A | ARES | New York Stock Exchange | ||||||
7.00% Series A Preferred Stock, par value $0.01 per share | ARES.PRA | New York Stock Exchange |
Large | x | Accelerated Filer | Non-Accelerated Filer | ☐ | Smaller | ☐ | Emerging | ☐ |
Page | |||||||||||||||
Credit: $32.1 | Private Equity: |
European Direct Lending | U.S. Direct Lending | Special Opportunities | Infrastructure & Power | |||||||||||||||||||||||||||||||||||||||||
Syndicated Loans | High Yield |
Real Estate: $2.7 | Strategic Initiatives: $0.2 |
Real Estate | U.S. Real Estate Equity | European Real Estate | ||||||||||||||||||||||||||||||
Equity |
Credit | Private Equity: |
European Direct Lending | U.S. Direct Lending | Corporate Private Equity | Special Opportunities | Infrastructure | ||||||||||||||||||||||||||||||||||||||||
Syndicated Loans | Multi-Asset Credit | High Yield |
Real Estate: $2.3 | Strategic Initiatives: $0.8 |
Real Estate Debt | European Real Estate Equity | U.S. Real Estate Equity | |||||||||||||||||||||||||||||||||||||||||||||
Asian Secured Lending | Asian Special Situations |
Credit | Private Equity | Real Estate | Strategic Initiatives |
AUM: $145.5 | FPAUM: $88.0 |
U.S. Direct Lending | Syndicated Loans | Alternative Credit | High Yield | Multi-Asset Credit | |||||||||||||||||||||||||||||||
AUM: $27.4 | FPAUM: $21.2 |
Corporate Private Equity | Special Opportunities | Infrastructure and Power |
AUM: $14.8 | FPAUM: $10.2 |
Real Estate Debt | European Real Estate Equity | U.S. Real Estate Equity | |||||||||||||||
AUM: $9.3 | FPAUM: $6.6 |
Asian Special Situations | Insurance | Asian Secured Lending | |||||||||||||||
Institutional Direct | Public Entities and Related | Institutional Intermediaries | Pension | Insurance | North America | Europe | Asia | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Sovereign Wealth Fund | Investment Manager | Other | Australia | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
5/2/2014 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017 | 12/31/2018 | |
ARES | $100.0 | $94.5 | $74.9 | $117.3 | $129.8 | $122.6 |
S&P 500 | 100.0 | 111.0 | 112.5 | 126.0 | 153.5 | 146.7 |
Dow Jones U.S. Asset Manager | 100.0 | 115.0 | 103.3 | 114.9 | 149.0 | 111.7 |
Period | Total Number of Shares | Average Price Paid Per Share | Total Number of Shares | Approximate Dollar Value of Shares | |||||||||||||||||||
October 1, | — | — | 150,000 | ||||||||||||||||||||
November 1, | — | — | — | ||||||||||||||||||||
December 1, | — | — | — | ||||||||||||||||||||
Total | — | — |
For the Year Ended December 31, | |||||||||||||||||||
Statements of operations data | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||
As Adjusted | As Adjusted | As Adjusted | As Adjusted | ||||||||||||||||
Revenues | |||||||||||||||||||
Management fees (includes ARCC Part I Fees of $128,805, $105,467, $121,181, $121,491 and $118,537 for the years ended December 31, 2018, 2017, 2016, 2015 and 2014, respectively) | $ | 802,502 | $ | 722,419 | $ | 642,068 | $ | 634,399 | $ | 486,477 | |||||||||
Carried interest allocation | 42,410 | 620,454 | 494,580 | 146,038 | 63,884 | ||||||||||||||
Incentive fees | 63,380 | 16,220 | 23,272 | 4,577 | 27,528 | ||||||||||||||
Principal investment income (loss) | (1,455 | ) | 64,444 | 55,168 | 11,290 | 6,527 | |||||||||||||
Administrative, transaction and other fees | 51,624 | 56,406 | 39,285 | 29,428 | 26,000 | ||||||||||||||
Total revenues | 958,461 | 1,479,943 | 1,254,373 | 825,732 | 610,416 | ||||||||||||||
Expenses | |||||||||||||||||||
Compensation and benefits | 570,380 | 514,109 | 447,725 | 414,454 | 456,372 | ||||||||||||||
Performance related compensation | 30,254 | 479,722 | 387,846 | 111,683 | 170,028 | ||||||||||||||
General, administrative and other expenses | 215,964 | 196,730 | 159,776 | 224,798 | 166,839 | ||||||||||||||
Transaction support expense | — | 275,177 | — | — | — | ||||||||||||||
Expenses of Consolidated Funds | 53,764 | 39,020 | 21,073 | 18,105 | 66,800 | ||||||||||||||
Total expenses | 870,362 | 1,504,758 | 1,016,420 | 769,040 | 860,039 | ||||||||||||||
Other income (expense) | |||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1,884 | ) | 8,262 | (7,629 | ) | 12,913 | 26,206 | ||||||||||||
Interest and dividend income | 7,028 | 7,043 | 4,493 | 6,851 | 6,639 | ||||||||||||||
Interest expense | (21,448 | ) | (21,219 | ) | (17,981 | ) | (18,949 | ) | (8,617 | ) | |||||||||
Debt extinguishment expense | — | — | — | (11,641 | ) | — | |||||||||||||
Other income (expense), net | (851 | ) | 19,470 | 35,650 | 21,680 | (2,422 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments of Consolidated Funds | (1,583 | ) | 100,124 | (2,057 | ) | (24,616 | ) | 513,270 | |||||||||||
Interest and other income of Consolidated Funds | 337,875 | 187,721 | 138,943 | 117,373 | 937,835 | ||||||||||||||
Interest expense of Consolidated Funds | (222,895 | ) | (126,727 | ) | (91,452 | ) | (78,819 | ) | (666,373 | ) | |||||||||
Total other income | 96,242 | 174,674 | 59,967 | 24,792 | 806,538 | ||||||||||||||
Income before taxes | 184,341 | 149,859 | 297,920 | 81,484 | 556,915 | ||||||||||||||
Income tax expense (benefit) | 32,202 | (23,052 | ) | 11,019 | 19,064 | 11,253 | |||||||||||||
Net income | 152,139 | 172,911 | 286,901 | 62,420 | 545,662 | ||||||||||||||
Less: Net income attributable to redeemable interests in Consolidated Funds | — | — | — | — | 2,565 | ||||||||||||||
Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds | 20,512 | 60,818 | 3,386 | (5,686 | ) | 417,793 | |||||||||||||
Less: Net income attributable to redeemable interests in Ares Operating Group entities | — | — | 456 | 338 | 731 | ||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 74,607 | 35,915 | 171,251 | 48,390 | 89,585 | ||||||||||||||
Net income attributable to Ares Management Corporation | 57,020 | 76,178 | 111,808 | 19,378 | 34,988 | ||||||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | 21,700 | 12,176 | — | — | ||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 35,320 | $ | 54,478 | $ | 99,632 | $ | 19,378 | $ | 34,988 |
As of December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
As Adjusted | As Adjusted | As Adjusted | As Adjusted | ||||||||||||||||
Statements of financial condition data | |||||||||||||||||||
Cash and cash equivalents | $ | 110,247 | $ | 118,929 | $ | 342,861 | $ | 121,483 | $ | 148,858 | |||||||||
Cash and cash equivalents of Consolidated Funds | 384,644 | 556,500 | 455,280 | 159,507 | 1,314,397 | ||||||||||||||
Investments | 1,326,137 | 1,724,571 | 1,209,793 | 974,101 | 336,159 | ||||||||||||||
Investments, at fair value, of Consolidated Funds | 7,673,165 | 5,582,842 | 3,330,203 | 2,559,783 | 19,123,950 | ||||||||||||||
Total assets | 10,154,692 | 8,563,522 | 5,829,712 | 4,321,408 | 21,638,992 | ||||||||||||||
Debt obligations | 480,952 | 616,176 | 305,784 | 389,120 | 243,491 | ||||||||||||||
CLO loan obligations of Consolidated Funds | 6,678,091 | 4,963,194 | 3,031,112 | 2,174,352 | 12,049,170 | ||||||||||||||
Consolidated Funds’ borrowings | 209,284 | 138,198 | 55,070 | 11,734 | 777,600 | ||||||||||||||
Mezzanine debt of Consolidated Funds | — | — | — | — | 378,365 | ||||||||||||||
Total liabilities | 8,760,351 | 7,103,230 | 4,452,450 | 3,329,497 | 14,879,619 | ||||||||||||||
Redeemable interest in Consolidated Funds | — | — | — | — | 1,037,450 | ||||||||||||||
Redeemable interest in Ares Operating Group entities | — | — | — | 23,505 | 23,988 | ||||||||||||||
Non‑controlling interest in Consolidated Funds | 503,637 | 528,488 | 338,035 | 323,606 | 4,950,803 | ||||||||||||||
Non‑controlling interest in Ares Operating Group entities | 302,780 | 358,186 | 447,615 | 397,883 | 463,493 | ||||||||||||||
Total stockholders' equity | 587,924 | 573,618 | 591,612 | 246,917 | 283,639 | ||||||||||||||
Total equity | 1,394,341 | 1,460,292 | 1,377,262 | 968,406 | 5,697,935 | ||||||||||||||
Total liabilities, redeemable interest, non‑controlling interests and equity | 10,154,692 | 8,563,522 | 5,829,712 | 4,321,408 | 21,638,992 |
($ in millions) | Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total AUM | |||||||||||||||||||||||||||
Balance at 12/31/2019 | $ | 110,543 | $ | 25,166 | $ | 13,207 | $ | — | $ | 148,916 | ||||||||||||||||||||||
Acquisitions | 2,693 | — | — | 9,114 | 11,807 | |||||||||||||||||||||||||||
Net new par/equity commitments | 24,233 | 6,189 | 2,263 | 205 | 32,890 | |||||||||||||||||||||||||||
Net new debt commitments | 7,527 | — | 437 | — | 7,964 | |||||||||||||||||||||||||||
Capital reductions | (431) | (136) | (372) | — | (939) | |||||||||||||||||||||||||||
Distributions | (2,485) | (4,410) | (1,212) | (207) | (8,314) | |||||||||||||||||||||||||||
Redemptions | (2,176) | (5) | — | — | (2,181) | |||||||||||||||||||||||||||
Change in fund value | 5,568 | 635 | 485 | 149 | 6,837 | |||||||||||||||||||||||||||
Balance at 12/31/2020 | $ | 145,472 | $ | 27,439 | $ | 14,808 | $ | 9,261 | $ | 196,980 | ||||||||||||||||||||||
Average AUM(1) | $ | 123,434 | $ | 25,582 | $ | 14,180 | $ | 9,186 | $ | 172,382 | ||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total AUM | ||||||||||||||||||||||||||||
Balance at 12/31/2018 | $ | 95,836 | $ | 23,487 | $ | 11,340 | $ | — | $ | 130,663 | ||||||||||||||||||||||
Net new par/equity commitments | 6,591 | 3,151 | 2,361 | — | 12,103 | |||||||||||||||||||||||||||
Net new debt commitments | 10,684 | 25 | 633 | — | 11,342 | |||||||||||||||||||||||||||
Capital reductions | (1,765) | (8) | (89) | — | (1,862) | |||||||||||||||||||||||||||
Distributions | (2,186) | (3,803) | (1,600) | — | (7,589) | |||||||||||||||||||||||||||
Redemptions | (2,317) | (2) | — | — | (2,319) | |||||||||||||||||||||||||||
Change in fund value | 3,700 | 2,316 | 562 | — | 6,578 | |||||||||||||||||||||||||||
Balance at 12/31/2019 | $ | 110,543 | $ | 25,166 | $ | 13,207 | $ | — | $ | 148,916 | ||||||||||||||||||||||
Average AUM(1) | $ | 103,853 | $ | 24,537 | $ | 12,142 | $ | — | $ | 140,532 | ||||||||||||||||||||||
(1) Represents a five-point average of quarter-end balances for each period; except for Strategic Initiatives, which calculates the average using Ares SSG’s AUM on the date of the SSG Acquisition, September 30, 2020 and December 31, 2020, and the average using Ares Insurance Solutions’ AUM on the date of the acquisition of F&G Re and December 31, 2020. | ||||||||||||||||||||||||||||||||
AUM: $197.0 | AUM: $148.9 |
FPAUM | AUM not yet paying fees | Non-fee paying(1) | General partner and affiliates |
($ in millions) | Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total | |||||||||||||||||||||||||||
FPAUM Balance at 12/31/2019 | $ | 71,880 | $ | 17,040 | $ | 7,963 | $ | — | $ | 96,883 | ||||||||||||||||||||||
Acquisitions | 2,596 | — | — | 6,426 | 9,022 | |||||||||||||||||||||||||||
Commitments | 5,230 | 4,238 | 1,735 | — | 11,203 | |||||||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 13,609 | 1,585 | 1,222 | 716 | 17,132 | |||||||||||||||||||||||||||
Capital reductions | (1,660) | — | (51) | (25) | (1,736) | |||||||||||||||||||||||||||
Distributions | (3,657) | (1,196) | (520) | (472) | (5,845) | |||||||||||||||||||||||||||
Redemptions | (2,128) | — | — | — | (2,128) | |||||||||||||||||||||||||||
Change in fund value | 2,187 | (36) | 327 | — | 2,478 | |||||||||||||||||||||||||||
Change in fee basis | (40) | (459) | (424) | (49) | (972) | |||||||||||||||||||||||||||
FPAUM Balance at 12/31/2020 | $ | 88,017 | $ | 21,172 | $ | 10,252 | $ | 6,596 | $ | 126,037 | ||||||||||||||||||||||
Average FPAUM(1) | $ | 79,140 | $ | 18,085 | $ | 9,239 | $ | 6,518 | $ | 112,982 | ||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total | ||||||||||||||||||||||||||||
FPAUM Balance at 12/31/2018 | $ | 57,847 | $ | 17,071 | $ | 6,952 | $ | — | $ | 81,870 | ||||||||||||||||||||||
Commitments | 4,997 | 362 | 1,080 | — | 6,439 | |||||||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 13,674 | 2,019 | 1,269 | — | 16,962 | |||||||||||||||||||||||||||
Capital reductions | (1,557) | (202) | (217) | — | (1,976) | |||||||||||||||||||||||||||
Distributions | (2,285) | (1,364) | (650) | — | (4,299) | |||||||||||||||||||||||||||
Redemptions | (2,604) | (1) | — | — | (2,605) | |||||||||||||||||||||||||||
Change in fund value | 2,181 | 3 | (16) | — | 2,168 | |||||||||||||||||||||||||||
Change in fee basis | (373) | (848) | (455) | — | (1,676) | |||||||||||||||||||||||||||
FPAUM Balance at 12/31/2019 | $ | 71,880 | $ | 17,040 | $ | 7,963 | $ | — | $ | 96,883 | ||||||||||||||||||||||
Average FPAUM(1) | $ | 65,278 | $ | 17,108 | $ | 7,353 | $ | — | $ | 89,739 | ||||||||||||||||||||||
(1) Represents a five-point average of quarter-end balances for each period; except for Strategic Initiatives, which calculates the average using Ares SSG’s FPAUM on the date of the SSG Acquisition, September 30, 2020 and December 31, 2020, and the average using Ares Insurance Solutions’ FPAUM on the date of the acquisition of F&G Re and December 31, 2020. |
FPAUM: $126.0 | FPAUM: $96.9 |
Invested capital/other(1) | Market value(2) | Collateral balances (at par) | Capital commitments |
Credit | Private Equity | Real Estate | Strategic Initiatives |
Credit | Private Equity | Real Estate | Strategic Initiatives |
Permanent Capital | 10 or more years | 7 to 9 years | 3 to 6 years | Fewer than 3 years | Differentiated Managed Accounts(1) | Managed Accounts |
Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $184,141 and $164,396 for the years ended December 31, 2020 and 2019, respectively) | $ | 1,150,608 | $ | 979,417 | $ | 171,191 | 17 | % | |||||||||||||||||||||||||||||||||||||||
Carried interest allocation | 505,608 | 621,872 | (116,264) | (19) | |||||||||||||||||||||||||||||||||||||||||||
Incentive fees | 37,902 | 69,197 | (31,295) | (45) | |||||||||||||||||||||||||||||||||||||||||||
Principal investment income | 28,552 | 56,555 | (28,003) | (50) | |||||||||||||||||||||||||||||||||||||||||||
Administrative, transaction and other fees | 41,376 | 38,397 | 2,979 | 8 | |||||||||||||||||||||||||||||||||||||||||||
Total revenues | 1,764,046 | 1,765,438 | (1,392) | 0 | |||||||||||||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 767,252 | 653,352 | (113,900) | (17) | |||||||||||||||||||||||||||||||||||||||||||
Performance related compensation | 404,116 | 497,181 | 93,065 | 19 | |||||||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | 258,999 | 270,219 | 11,220 | 4 | |||||||||||||||||||||||||||||||||||||||||||
Expenses of Consolidated Funds | 20,119 | 42,045 | 21,926 | 52 | |||||||||||||||||||||||||||||||||||||||||||
Total expenses | 1,450,486 | 1,462,797 | 12,311 | 1 | |||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (9,008) | 9,554 | (18,562) | NM | |||||||||||||||||||||||||||||||||||||||||||
Interest and dividend income | 8,071 | 7,506 | 565 | 8 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (24,908) | (19,671) | (5,237) | (27) | |||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | 11,291 | (7,840) | 19,131 | NM | |||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | (96,864) | 15,136 | (112,000) | NM | |||||||||||||||||||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 463,652 | 395,599 | 68,053 | 17 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (286,316) | (277,745) | (8,571) | (3) | |||||||||||||||||||||||||||||||||||||||||||
Total other income | 65,918 | 122,539 | (56,621) | (46) | |||||||||||||||||||||||||||||||||||||||||||
Income before taxes | 379,478 | 425,180 | (45,702) | (11) | |||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 54,993 | 52,376 | (2,617) | (5) | |||||||||||||||||||||||||||||||||||||||||||
Net income | 324,485 | 372,804 | (48,319) | (13) | |||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 28,085 | 39,704 | (11,619) | (29) | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Ares Operating Group entities | 296,400 | 333,100 | (36,700) | (11) | |||||||||||||||||||||||||||||||||||||||||||
Less: Net loss attributable to redeemable interest in Ares Operating Group entities | (976) | — | (976) | NM | |||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 145,234 | 184,216 | (38,982) | (21) | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation | 152,142 | 148,884 | 3,258 | 2 | |||||||||||||||||||||||||||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | 21,700 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 130,442 | $ | 127,184 | 3,258 | 3 |
($ in millions) | Year ended December 31, 2020 | Primary Drivers | Year ended December 31, 2019 | Primary Drivers | |||||||||||||
Credit funds | $ | 146.3 | Four direct lending funds and one alternative credit fund with $12.0 billion of IGAUM generating returns in excess of their hurdle rates, primarily from: Ares Private Credit Solutions, L.P. ("PCS") and Ares Capital Europe IV, L.P. ("ACE IV") generated carried interest allocation of $48.9 million and $51.5 million, respectively, driven by net investment income on an increasing invested capital base. Net investment income for the year was muted by net unrealized losses on investments that were primarily incurred during the first quarter of 2020 due to the market volatility driven by the COVID-19 pandemic. In addition, an alternative credit fund generated carried interest allocation of $16.0 million primarily driven by net investment income during the period. | $ | 129.5 | 10 direct lending funds with $11.2 billion of IGAUM generating returns in excess of their hurdle rates, primarily from PCS, ACE IV and Ares Capital Europe III, L.P. ("ACE III") that generated $30.6 million, $48.6 million and $30.1 million of carried interest allocation during the period, respectively. PCS and ACE IV generated carried interest allocation primarily due to increasing deployment, while ACE III is now past its investment period and the carried interest allocation it generated was primarily driven by a performing portfolio. | |||||||||||
Private equity funds | 304.7 | Ares Corporate Opportunities Fund IV, L.P. ("ACOF IV") generated carried interest allocation of $285.7 million primarily due to market appreciation of its investment in The AZEK Company (“AZEK”) following its initial public offering. In addition, market appreciation across several investments generated carried interest allocation of $102.6 million for Ares Special Opportunities Fund, L.P. (“ASOF”). Market depreciation across several energy sector investments led to the reversal of unrealized carried interest allocation of $75.1 million for Ares Corporate Opportunities Fund V, L.P. (“ACOF V”). | 416.5 | Market appreciation of Ares Corporate Opportunities Fund III, L.P.'s (“ACOF III”) investments in Floor & Decor (“FND”) and a professional services company; increased fair value of ACOF IV’s investment in National Veterinary Associates (“NVA”) in connection with the pending sale of the company which closed in the first quarter of 2020; and market appreciation across several ACOF IV and ACOF V portfolio companies. | |||||||||||||
Real estate funds | 54.6 | Market appreciation from properties within real estate equity funds primarily driven by gains generated across several industrial and multi-family assets of US Real Estate Fund IX, L.P. ("US IX") in the amount of $19.9 million. In addition, there were gains generated in multiple funds from the sale of a pan-European logistics portfolio at a higher price than the December 31, 2019 valuation. | 75.9 | Market appreciation from multiple properties within six of our U.S. real estate equity funds, EF IV and five European real estate equity funds. | |||||||||||||
Carried interest allocation | $ | 505.6 | $ | 621.9 |
($ in millions) | Year ended December 31, 2020 | Primary Drivers | Year ended December 31, 2019 | Primary Drivers | |||||||||||||
Credit funds | $ | 37.1 | Seven direct lending funds and two alternative credit funds with incentive fees that crystallized during the period. The number of funds was affected by the overall economic environment during the year. | $ | 67.6 | 16 direct lending funds with incentive fees that crystallized during the period. | |||||||||||
Real estate funds | 0.8 | Incentive fees generated from ACRE. | 1.6 | Incentive fees generated from ACRE. | |||||||||||||
Incentive fees | $ | 37.9 | $ | 69.2 |
Year ended December 31, | Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses of the Consolidated Funds | $ | (20,119) | $ | (42,045) | $ | 10,746 | 35 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | (96,864) | 15,136 | (112,000) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 463,652 | 395,599 | 68,053 | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (286,316) | (277,745) | (8,571) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before taxes | 60,353 | 90,945 | (30,592) | (34) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit (expense) of Consolidated Funds | (118) | 530 | (648) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 60,235 | 91,475 | (31,240) | (34) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Revenues attributable to Ares Management Corporation eliminated upon consolidation | 36,725 | 49,177 | (12,452) | (25) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Other income (expense), net attributable to Ares Management Corporation eliminated upon consolidation | (4,575) | 2,594 | (7,169) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests in Consolidated Funds | $ | 28,085 | $ | 39,704 | (11,619) | (29) |
Credit Group | Private Equity Group | Real Estate Group | Total AUM | ||||||||||||
Balance at 12/31/2017 | $ | 71,732 | $ | 24,530 | $ | 10,229 | $ | 106,491 | |||||||
Net new par/equity commitments | 21,105 | 1,498 | 2,847 | 25,450 | |||||||||||
Net new debt commitments | 9,340 | 100 | 75 | 9,515 | |||||||||||
Distributions | (7,744 | ) | (1,900 | ) | (2,209 | ) | (11,853 | ) | |||||||
Change in fund value | 1,403 | (741 | ) | 398 | 1,060 | ||||||||||
Balance at 12/31/2018 | $ | 95,836 | $ | 23,487 | $ | 11,340 | $ | 130,663 | |||||||
Average AUM(1) | $ | 84,647 | $ | 23,784 | $ | 10,793 | $ | 119,224 |
Credit Group | Private Equity Group | Real Estate Group | Total AUM | ||||||||||||
Balance at 12/31/2016 | $ | 60,466 | $ | 25,041 | $ | 9,752 | $ | 95,259 | |||||||
Acquisitions | 3,605 | — | — | 3,605 | |||||||||||
Net new par/equity commitments | 8,670 | 356 | 800 | 9,826 | |||||||||||
Net new debt commitments | 5,989 | — | 509 | 6,498 | |||||||||||
Distributions | (10,852 | ) | (3,014 | ) | (1,599 | ) | (15,465 | ) | |||||||
Change in fund value | 3,854 | 2,147 | 767 | 6,768 | |||||||||||
Balance at 12/31/2017 | $ | 71,732 | $ | 24,530 | $ | 10,229 | $ | 106,491 | |||||||
Average AUM(1) | $ | 67,071 | $ | 24,914 | $ | 10,261 | $ | 102,246 |
Credit Group | Private Equity Group | Real Estate Group | Total AUM | ||||||||||||
Balance at 12/31/2015 | $ | 60,386 | $ | 22,978 | $ | 10,268 | $ | 93,632 | |||||||
Net new par/equity commitments | 5,453 | 2,314 | 840 | 8,607 | |||||||||||
Net new debt commitments | 5,030 | — | 225 | 5,255 | |||||||||||
Distributions | (11,968 | ) | (2,519 | ) | (1,813 | ) | (16,300 | ) | |||||||
Change in fund value | 1,565 | 2,268 | 232 | 4,065 | |||||||||||
Balance at 12/31/2016 | $ | 60,466 | $ | 25,041 | $ | 9,752 | $ | 95,259 | |||||||
Average AUM(1) | $ | 60,297 | $ | 24,553 | $ | 10,144 | $ | 94,994 |
Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $184,141 and $164,396 for the years ended December 31, 2020 and 2019, respectively) | $ | 1,150,608 | $ | 979,417 | $ | 171,191 | 17 | % | |||||||||||||||||||||||||||||||||||||||
Carried interest allocation | 505,608 | 621,872 | (116,264) | (19) | |||||||||||||||||||||||||||||||||||||||||||
Incentive fees | 37,902 | 69,197 | (31,295) | (45) | |||||||||||||||||||||||||||||||||||||||||||
Principal investment income | 28,552 | 56,555 | (28,003) | (50) | |||||||||||||||||||||||||||||||||||||||||||
Administrative, transaction and other fees | 41,376 | 38,397 | 2,979 | 8 | |||||||||||||||||||||||||||||||||||||||||||
Total revenues | 1,764,046 | 1,765,438 | (1,392) | 0 | |||||||||||||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 767,252 | 653,352 | (113,900) | (17) | |||||||||||||||||||||||||||||||||||||||||||
Performance related compensation | 404,116 | 497,181 | 93,065 | 19 | |||||||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | 258,999 | 270,219 | 11,220 | 4 | |||||||||||||||||||||||||||||||||||||||||||
Expenses of Consolidated Funds | 20,119 | 42,045 | 21,926 | 52 | |||||||||||||||||||||||||||||||||||||||||||
Total expenses | 1,450,486 | 1,462,797 | 12,311 | 1 | |||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (9,008) | 9,554 | (18,562) | NM | |||||||||||||||||||||||||||||||||||||||||||
Interest and dividend income | 8,071 | 7,506 | 565 | 8 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (24,908) | (19,671) | (5,237) | (27) | |||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | 11,291 | (7,840) | 19,131 | NM | |||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | (96,864) | 15,136 | (112,000) | NM | |||||||||||||||||||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 463,652 | 395,599 | 68,053 | 17 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (286,316) | (277,745) | (8,571) | (3) | |||||||||||||||||||||||||||||||||||||||||||
Total other income | 65,918 | 122,539 | (56,621) | (46) | |||||||||||||||||||||||||||||||||||||||||||
Income before taxes | 379,478 | 425,180 | (45,702) | (11) | |||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 54,993 | 52,376 | (2,617) | (5) | |||||||||||||||||||||||||||||||||||||||||||
Net income | 324,485 | 372,804 | (48,319) | (13) | |||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 28,085 | 39,704 | (11,619) | (29) | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Ares Operating Group entities | 296,400 | 333,100 | (36,700) | (11) | |||||||||||||||||||||||||||||||||||||||||||
Less: Net loss attributable to redeemable interest in Ares Operating Group entities | (976) | — | (976) | NM | |||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 145,234 | 184,216 | (38,982) | (21) | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation | 152,142 | 148,884 | 3,258 | 2 | |||||||||||||||||||||||||||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | 21,700 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 130,442 | $ | 127,184 | 3,258 | 3 |
Credit Group | Private Equity Group | Real Estate Group | Total | ||||||||||||
FPAUM Balance at 12/31/2017 | $ | 49,450 | $ | 16,858 | $ | 6,189 | $ | 72,497 | |||||||
Commitments | 4,768 | 1,049 | 1,580 | 7,397 | |||||||||||
Subscriptions/deployment/increase in leverage | 10,434 | 896 | 678 | 12,008 | |||||||||||
Redemptions/distributions/decrease in leverage | (6,788 | ) | (1,609 | ) | (1,134 | ) | (9,531 | ) | |||||||
Change in fund value | (10 | ) | 6 | (20 | ) | (24 | ) | ||||||||
Change in fee basis | (7 | ) | (129 | ) | (341 | ) | (477 | ) | |||||||
FPAUM Balance at 12/31/2018 | $ | 57,847 | $ | 17,071 | $ | 6,952 | $ | 81,870 | |||||||
Average FPAUM(1) | $ | 53,616 | $ | 16,760 | $ | 6,738 | $ | 77,114 |
Credit Group | Private Equity Group | Real Estate Group | Total | ||||||||||||
FPAUM Balance at 12/31/2016 | $ | 42,709 | $ | 11,314 | $ | 6,540 | $ | 60,563 | |||||||
Acquisitions | 2,789 | — | — | 2,789 | |||||||||||
Commitments | 5,060 | 7,955 | 665 | 13,680 | |||||||||||
Subscriptions/deployment/increase in leverage | 5,094 | 1,122 | 582 | 6,798 | |||||||||||
Redemptions/distributions/decrease in leverage | (8,733 | ) | (1,606 | ) | (841 | ) | (11,180 | ) | |||||||
Change in fund value | 2,322 | (375 | ) | 183 | 2,130 | ||||||||||
Change in fee basis | 209 | (1,552 | ) | (940 | ) | (2,283 | ) | ||||||||
FPAUM Balance at 12/31/2017 | $ | 49,450 | $ | 16,858 | $ | 6,189 | $ | 72,497 | |||||||
Average FPAUM(1) | $ | 46,598 | $ | 15,886 | $ | 6,547 | $ | 69,031 |
Credit Group | Private Equity Group | Real Estate Group | Total | ||||||||||||
FPAUM Balance at 12/31/2015 | $ | 39,925 | $ | 12,462 | $ | 6,757 | $ | 59,144 | |||||||
Commitments | 3,631 | 159 | 462 | 4,252 | |||||||||||
Subscriptions/deployment/increase in leverage | 3,712 | 93 | 630 | 4,435 | |||||||||||
Redemptions/distributions/decrease in leverage | (5,815 | ) | (665 | ) | (1,019 | ) | (7,499 | ) | |||||||
Change in fund value | 1,316 | (168 | ) | (58 | ) | 1,090 | |||||||||
Change in fee basis | (60 | ) | (567 | ) | (232 | ) | (859 | ) | |||||||
FPAUM Balance at 12/31/2016 | $ | 42,709 | $ | 11,314 | $ | 6,540 | $ | 60,563 | |||||||
Average FPAUM(1) | $ | 40,938 | $ | 11,800 | $ | 6,669 | $ | 59,407 |
($ in millions) | Year ended December 31, 2020 | Primary Drivers | Year ended December 31, 2019 | Primary Drivers | |||||||||||||
Credit funds | $ | 146.3 | Four direct lending funds and one alternative credit fund with $12.0 billion of IGAUM generating returns in excess of their hurdle rates, primarily from: Ares Private Credit Solutions, L.P. ("PCS") and Ares Capital Europe IV, L.P. ("ACE IV") generated carried interest allocation of $48.9 million and $51.5 million, respectively, driven by net investment income on an increasing invested capital base. Net investment income for the year was muted by net unrealized losses on investments that were primarily incurred during the first quarter of 2020 due to the market volatility driven by the COVID-19 pandemic. In addition, an alternative credit fund generated carried interest allocation of $16.0 million primarily driven by net investment income during the period. | $ | 129.5 | 10 direct lending funds with $11.2 billion of IGAUM generating returns in excess of their hurdle rates, primarily from PCS, ACE IV and Ares Capital Europe III, L.P. ("ACE III") that generated $30.6 million, $48.6 million and $30.1 million of carried interest allocation during the period, respectively. PCS and ACE IV generated carried interest allocation primarily due to increasing deployment, while ACE III is now past its investment period and the carried interest allocation it generated was primarily driven by a performing portfolio. | |||||||||||
Private equity funds | 304.7 | Ares Corporate Opportunities Fund IV, L.P. ("ACOF IV") generated carried interest allocation of $285.7 million primarily due to market appreciation of its investment in The AZEK Company (“AZEK”) following its initial public offering. In addition, market appreciation across several investments generated carried interest allocation of $102.6 million for Ares Special Opportunities Fund, L.P. (“ASOF”). Market depreciation across several energy sector investments led to the reversal of unrealized carried interest allocation of $75.1 million for Ares Corporate Opportunities Fund V, L.P. (“ACOF V”). | 416.5 | Market appreciation of Ares Corporate Opportunities Fund III, L.P.'s (“ACOF III”) investments in Floor & Decor (“FND”) and a professional services company; increased fair value of ACOF IV’s investment in National Veterinary Associates (“NVA”) in connection with the pending sale of the company which closed in the first quarter of 2020; and market appreciation across several ACOF IV and ACOF V portfolio companies. | |||||||||||||
Real estate funds | 54.6 | Market appreciation from properties within real estate equity funds primarily driven by gains generated across several industrial and multi-family assets of US Real Estate Fund IX, L.P. ("US IX") in the amount of $19.9 million. In addition, there were gains generated in multiple funds from the sale of a pan-European logistics portfolio at a higher price than the December 31, 2019 valuation. | 75.9 | Market appreciation from multiple properties within six of our U.S. real estate equity funds, EF IV and five European real estate equity funds. | |||||||||||||
Carried interest allocation | $ | 505.6 | $ | 621.9 |
($ in millions) | Year ended December 31, 2020 | Primary Drivers | Year ended December 31, 2019 | Primary Drivers | |||||||||||||
Credit funds | $ | 37.1 | Seven direct lending funds and two alternative credit funds with incentive fees that crystallized during the period. The number of funds was affected by the overall economic environment during the year. | $ | 67.6 | 16 direct lending funds with incentive fees that crystallized during the period. | |||||||||||
Real estate funds | 0.8 | Incentive fees generated from ACRE. | 1.6 | Incentive fees generated from ACRE. | |||||||||||||
Incentive fees | $ | 37.9 | $ | 69.2 |
Year ended December 31, | Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses of the Consolidated Funds | $ | (20,119) | $ | (42,045) | $ | 10,746 | 35 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | (96,864) | 15,136 | (112,000) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 463,652 | 395,599 | 68,053 | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (286,316) | (277,745) | (8,571) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before taxes | 60,353 | 90,945 | (30,592) | (34) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit (expense) of Consolidated Funds | (118) | 530 | (648) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 60,235 | 91,475 | (31,240) | (34) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Revenues attributable to Ares Management Corporation eliminated upon consolidation | 36,725 | 49,177 | (12,452) | (25) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Other income (expense), net attributable to Ares Management Corporation eliminated upon consolidation | (4,575) | 2,594 | (7,169) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests in Consolidated Funds | $ | 28,085 | $ | 39,704 | (11,619) | (29) |
For the Years Ended December 31, | 2018 vs. 2017 | 2017 vs. 2016 | |||||||||||||||||||||||
2018 | 2017 | 2016 | Favorable (Unfavorable) | Favorable (Unfavorable) | |||||||||||||||||||||
$ Change | % Change | $ Change | % Change | ||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $128,805, $105,467 and $121,181 for the years ended December 31, 2018, 2017 and 2016, respectively) | $ | 802,502 | $ | 722,419 | $ | 642,068 | $ | 80,083 | 11 | % | $ | 80,351 | 13 | % | |||||||||||
Carried interest allocation | 42,410 | 620,454 | 494,580 | (578,044 | ) | (93 | )% | 125,874 | 25 | % | |||||||||||||||
Incentive fees | 63,380 | 16,220 | 23,272 | 47,160 | 291 | % | (7,052 | ) | (30 | )% | |||||||||||||||
Principal investment income (loss) | (1,455 | ) | 64,444 | 55,168 | (65,899 | ) | NM | 9,276 | 17 | % | |||||||||||||||
Administrative, transaction and other fees | 51,624 | 56,406 | 39,285 | (4,782 | ) | (8 | )% | 17,121 | 44 | % | |||||||||||||||
Total revenues | 958,461 | 1,479,943 | 1,254,373 | (521,482 | ) | (35 | )% | 225,570 | 18 | % | |||||||||||||||
Expenses | |||||||||||||||||||||||||
Compensation and benefits | 570,380 | 514,109 | 447,725 | (56,271 | ) | (11 | )% | (66,384 | ) | (15 | )% | ||||||||||||||
Performance related compensation | 30,254 | 479,722 | 387,846 | 449,468 | 94 | % | (91,876 | ) | (24 | )% | |||||||||||||||
General, administrative and other expenses | 215,964 | 196,730 | 159,776 | (19,234 | ) | (10 | )% | (36,954 | ) | (23 | )% | ||||||||||||||
Transaction support expense | — | 275,177 | — | 275,177 | NM | (275,177 | ) | NM | |||||||||||||||||
Expenses of Consolidated Funds | 53,764 | 39,020 | 21,073 | (14,744 | ) | (38 | )% | (17,947 | ) | (85 | )% | ||||||||||||||
Total expenses | 870,362 | 1,504,758 | 1,016,420 | 634,396 | 42 | % | (488,338 | ) | (48 | )% | |||||||||||||||
Other income (expense) | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1,884 | ) | 8,262 | (7,629 | ) | (10,146 | ) | NM | 15,891 | NM | |||||||||||||||
Interest and dividend income | 7,028 | 7,043 | 4,493 | (15 | ) | < 1% | 2,550 | 57 | % | ||||||||||||||||
Interest expense | (21,448 | ) | (21,219 | ) | (17,981 | ) | (229 | ) | (1 | )% | (3,238 | ) | (18 | )% | |||||||||||
Other income (expense), net | (851 | ) | 19,470 | 35,650 | (20,321 | ) | NM | (16,180 | ) | (45 | )% | ||||||||||||||
Net realized and unrealized gain (loss) on investments of Consolidated Funds | (1,583 | ) | 100,124 | (2,057 | ) | (101,707 | ) | NM | 102,181 | NM | |||||||||||||||
Interest and other income of Consolidated Funds | 337,875 | 187,721 | 138,943 | 150,154 | 80 | % | 48,778 | 35 | % | ||||||||||||||||
Interest expense of Consolidated Funds | (222,895 | ) | (126,727 | ) | (91,452 | ) | (96,168 | ) | (76 | )% | (35,275 | ) | (39 | )% | |||||||||||
Total other income | 96,242 | 174,674 | 59,967 | (78,432 | ) | (45 | )% | 114,707 | 191 | % | |||||||||||||||
Income before taxes | 184,341 | 149,859 | 297,920 | 34,482 | 23 | % | (148,061 | ) | (50 | )% | |||||||||||||||
Income tax expense (benefit) | 32,202 | (23,052 | ) | 11,019 | 55,254 | NM | (34,071 | ) | NM | ||||||||||||||||
Net income | 152,139 | 172,911 | 286,901 | (20,772 | ) | (12 | )% | (113,990 | ) | (40 | )% | ||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 20,512 | 60,818 | 3,386 | (40,306 | ) | (66 | )% | 57,432 | NM | ||||||||||||||||
Less: Net income attributable to redeemable interests in Ares Operating Group entities | — | — | 456 | — | — | % | (456 | ) | NM | ||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 74,607 | 35,915 | 171,251 | 38,692 | 108 | % | (135,336 | ) | (79 | )% | |||||||||||||||
Net income attributable to Ares Management Corporation | 57,020 | 76,178 | 111,808 | (19,158 | ) | (25 | )% | (35,630 | ) | (32 | )% | ||||||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | 21,700 | 12,176 | — | — | % | (9,524 | ) | (78 | )% | |||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 35,320 | $ | 54,478 | $ | 99,632 | (19,158 | ) | (35 | )% | (45,154 | ) | (45 | )% |
Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $184,141 and $164,396 for the years ended December 31, 2020 and 2019, respectively) | $ | 1,150,608 | $ | 979,417 | $ | 171,191 | 17 | % | |||||||||||||||||||||||||||||||||||||||
Carried interest allocation | 505,608 | 621,872 | (116,264) | (19) | |||||||||||||||||||||||||||||||||||||||||||
Incentive fees | 37,902 | 69,197 | (31,295) | (45) | |||||||||||||||||||||||||||||||||||||||||||
Principal investment income | 28,552 | 56,555 | (28,003) | (50) | |||||||||||||||||||||||||||||||||||||||||||
Administrative, transaction and other fees | 41,376 | 38,397 | 2,979 | 8 | |||||||||||||||||||||||||||||||||||||||||||
Total revenues | 1,764,046 | 1,765,438 | (1,392) | 0 | |||||||||||||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 767,252 | 653,352 | (113,900) | (17) | |||||||||||||||||||||||||||||||||||||||||||
Performance related compensation | 404,116 | 497,181 | 93,065 | 19 | |||||||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | 258,999 | 270,219 | 11,220 | 4 | |||||||||||||||||||||||||||||||||||||||||||
Expenses of Consolidated Funds | 20,119 | 42,045 | 21,926 | 52 | |||||||||||||||||||||||||||||||||||||||||||
Total expenses | 1,450,486 | 1,462,797 | 12,311 | 1 | |||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (9,008) | 9,554 | (18,562) | NM | |||||||||||||||||||||||||||||||||||||||||||
Interest and dividend income | 8,071 | 7,506 | 565 | 8 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (24,908) | (19,671) | (5,237) | (27) | |||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | 11,291 | (7,840) | 19,131 | NM | |||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | (96,864) | 15,136 | (112,000) | NM | |||||||||||||||||||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 463,652 | 395,599 | 68,053 | 17 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (286,316) | (277,745) | (8,571) | (3) | |||||||||||||||||||||||||||||||||||||||||||
Total other income | 65,918 | 122,539 | (56,621) | (46) | |||||||||||||||||||||||||||||||||||||||||||
Income before taxes | 379,478 | 425,180 | (45,702) | (11) | |||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 54,993 | 52,376 | (2,617) | (5) | |||||||||||||||||||||||||||||||||||||||||||
Net income | 324,485 | 372,804 | (48,319) | (13) | |||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 28,085 | 39,704 | (11,619) | (29) | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Ares Operating Group entities | 296,400 | 333,100 | (36,700) | (11) | |||||||||||||||||||||||||||||||||||||||||||
Less: Net loss attributable to redeemable interest in Ares Operating Group entities | (976) | — | (976) | NM | |||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 145,234 | 184,216 | (38,982) | (21) | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation | 152,142 | 148,884 | 3,258 | 2 | |||||||||||||||||||||||||||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | 21,700 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 130,442 | $ | 127,184 | 3,258 | 3 |
($ in millions) | Year ended December 31, 2020 | Primary Drivers | Year ended December 31, 2019 | Primary Drivers | |||||||||||||
Credit funds | $ | 146.3 | Four direct lending funds and one alternative credit fund with $12.0 billion of IGAUM generating returns in excess of their hurdle rates, primarily from: Ares Private Credit Solutions, L.P. ("PCS") and Ares Capital Europe IV, L.P. ("ACE IV") generated carried interest allocation of $48.9 million and $51.5 million, respectively, driven by net investment income on an increasing invested capital base. Net investment income for the year was muted by net unrealized losses on investments that were primarily incurred during the first quarter of 2020 due to the market volatility driven by the COVID-19 pandemic. In addition, an alternative credit fund generated carried interest allocation of $16.0 million primarily driven by net investment income during the period. | $ | 129.5 | 10 direct lending funds with $11.2 billion of IGAUM generating returns in excess of their hurdle rates, primarily from PCS, ACE IV and Ares Capital Europe III, L.P. ("ACE III") that generated $30.6 million, $48.6 million and $30.1 million of carried interest allocation during the period, respectively. PCS and ACE IV generated carried interest allocation primarily due to increasing deployment, while ACE III is now past its investment period and the carried interest allocation it generated was primarily driven by a performing portfolio. | |||||||||||
Private equity funds | 304.7 | Ares Corporate Opportunities Fund IV, L.P. ("ACOF IV") generated carried interest allocation of $285.7 million primarily due to market appreciation of its investment in The AZEK Company (“AZEK”) following its initial public offering. In addition, market appreciation across several investments generated carried interest allocation of $102.6 million for Ares Special Opportunities Fund, L.P. (“ASOF”). Market depreciation across several energy sector investments led to the reversal of unrealized carried interest allocation of $75.1 million for Ares Corporate Opportunities Fund V, L.P. (“ACOF V”). | 416.5 | Market appreciation of Ares Corporate Opportunities Fund III, L.P.'s (“ACOF III”) investments in Floor & Decor (“FND”) and a professional services company; increased fair value of ACOF IV’s investment in National Veterinary Associates (“NVA”) in connection with the pending sale of the company which closed in the first quarter of 2020; and market appreciation across several ACOF IV and ACOF V portfolio companies. | |||||||||||||
Real estate funds | 54.6 | Market appreciation from properties within real estate equity funds primarily driven by gains generated across several industrial and multi-family assets of US Real Estate Fund IX, L.P. ("US IX") in the amount of $19.9 million. In addition, there were gains generated in multiple funds from the sale of a pan-European logistics portfolio at a higher price than the December 31, 2019 valuation. | 75.9 | Market appreciation from multiple properties within six of our U.S. real estate equity funds, EF IV and five European real estate equity funds. | |||||||||||||
Carried interest allocation | $ | 505.6 | $ | 621.9 |
For the Year Ended December 31, 2018 | Primary Drivers | For the Year Ended December 31, 2017 | Primary Drivers | ||||||
Credit funds | $ | 82.6 | European direct lending funds generating returns in excess of their hurdle rates | $ | 55.8 | Certain European direct lending funds generating returns in excess of their hurdle rates | |||
Private equity funds | (168.7 | ) | Market depreciation of an Ares Corporate Opportunities Fund III, L.P.'s (“ACOF III”) publicly traded retail portfolio company; Market depreciation across several Ares Corporate Opportunities Fund IV, L.P. (“ACOF IV”) portfolio companies | 477.6 | Significant market appreciation in one of ACOF III's publicly traded retail portfolio companies following its initial public offering during the period | ||||
Real estate funds | 128.5 | Net market appreciation from properties within certain of our U.S. and E.U. real estate funds | 87.1 | Net market appreciation from properties within certain of our U.S. and E.U. real estate funds | |||||
Total | $ | 42.4 | $ | 620.5 |
($ in millions) | Year ended December 31, 2020 | Primary Drivers | Year ended December 31, 2019 | Primary Drivers | |||||||||||||
Credit funds | $ | 37.1 | Seven direct lending funds and two alternative credit funds with incentive fees that crystallized during the period. The number of funds was affected by the overall economic environment during the year. | $ | 67.6 | 16 direct lending funds with incentive fees that crystallized during the period. | |||||||||||
Real estate funds | 0.8 | Incentive fees generated from ACRE. | 1.6 | Incentive fees generated from ACRE. | |||||||||||||
Incentive fees | $ | 37.9 | $ | 69.2 |
Year ended December 31, | Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses of the Consolidated Funds | $ | (20,119) | $ | (42,045) | $ | 10,746 | 35 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | (96,864) | 15,136 | (112,000) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 463,652 | 395,599 | 68,053 | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (286,316) | (277,745) | (8,571) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before taxes | 60,353 | 90,945 | (30,592) | (34) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit (expense) of Consolidated Funds | (118) | 530 | (648) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 60,235 | 91,475 | (31,240) | (34) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Revenues attributable to Ares Management Corporation eliminated upon consolidation | 36,725 | 49,177 | (12,452) | (25) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Other income (expense), net attributable to Ares Management Corporation eliminated upon consolidation | (4,575) | 2,594 | (7,169) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests in Consolidated Funds | $ | 28,085 | $ | 39,704 | (11,619) | (29) |
Year ended December 31, | Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Group | $ | 501,373 | $ | 414,212 | $ | 87,161 | 21 | % | ||||||||||||||||||||||||||||||||||||||||||
Private Equity Group | 109,064 | 114,419 | (5,355) | (5) | ||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Group | 33,399 | 25,482 | 7,917 | 31 | ||||||||||||||||||||||||||||||||||||||||||||||
Strategic Initiatives | 17,371 | — | 17,371 | NM | ||||||||||||||||||||||||||||||||||||||||||||||
Operations Management Group | (236,757) | (230,454) | (6,303) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 424,450 | $ | 323,659 | 100,791 | 31 | ||||||||||||||||||||||||||||||||||||||||||||
Realized Income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Group | $ | 538,683 | $ | 471,643 | $ | 67,040 | 14 | % | ||||||||||||||||||||||||||||||||||||||||||
Private Equity Group | 212,695 | 212,564 | 131 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Group | 58,192 | 51,757 | 6,435 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
Strategic Initiatives | 16,915 | — | 16,915 | NM | ||||||||||||||||||||||||||||||||||||||||||||||
Operations Management Group | (244,529) | (232,478) | (12,051) | (5) | ||||||||||||||||||||||||||||||||||||||||||||||
Realized Income | $ | 581,956 | $ | 503,486 | 78,470 | 16 |
Year Ended December 31, | 2018 vs. 2017 | 2017 vs. 2016 | |||||||||||||||||||||||
2018 | 2017 | 2016 | Favorable (Unfavorable) | Favorable (Unfavorable) | |||||||||||||||||||||
$ Change | % Change | $ Change | % Change | ||||||||||||||||||||||
Fee related earnings: | |||||||||||||||||||||||||
Credit Group | $ | 327,369 | $ | 275,323 | $ | 240,910 | $ | 52,046 | 19 | % | $ | 34,413 | 14 | % | |||||||||||
Private Equity Group | 106,036 | 113,863 | 73,379 | (7,827 | ) | (7 | )% | 40,484 | 55 | % | |||||||||||||||
Real Estate Group | 23,950 | 14,862 | 16,157 | 9,088 | 61 | % | (1,295 | ) | (8 | )% | |||||||||||||||
Operations Management Group | (202,043 | ) | (187,058 | ) | (158,096 | ) | (14,985 | ) | (8 | )% | (28,962 | ) | (18 | )% | |||||||||||
Fee related earnings | $ | 255,312 | $ | 216,990 | $ | 172,350 | 38,322 | 18 | % | 44,640 | 26 | % | |||||||||||||
Realized income: | |||||||||||||||||||||||||
Credit Group | $ | 374,554 | $ | 292,081 | $ | 299,439 | 82,473 | 28 | % | (7,358 | ) | (2 | )% | ||||||||||||
Private Equity Group | 150,532 | 192,814 | 149,544 | (42,282 | ) | (22 | )% | 43,270 | 29 | % | |||||||||||||||
Real Estate Group | 67,605 | 24,527 | 26,611 | 43,078 | 176 | % | (2,084 | ) | (8 | )% | |||||||||||||||
Operations Management Group | (197,295 | ) | (183,982 | ) | (175,266 | ) | (13,313 | ) | (7 | )% | (8,716 | ) | (5 | )% | |||||||||||
Realized income | $ | 395,396 | $ | 325,440 | $ | 300,328 | 69,956 | 21 | % | 25,112 | 8 | % |
Year ended December 31, | |||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | |||||||||||||||||||||
Income before taxes | $ | 379,478 | $ | 425,180 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Depreciation and amortization expense | 40,662 | 40,602 | |||||||||||||||||||||
Equity compensation expense | 122,986 | 97,691 | |||||||||||||||||||||
Acquisition and merger-related expense | 11,194 | 16,266 | |||||||||||||||||||||
Deferred placement fees | 19,329 | 24,306 | |||||||||||||||||||||
Other (income) expense, net | 10,207 | (460) | |||||||||||||||||||||
Net expense of non-controlling interests in consolidated subsidiaries | 3,817 | 2,951 | |||||||||||||||||||||
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (28,203) | (39,174) | |||||||||||||||||||||
Unconsolidated performance (income) loss-unrealized | 7,554 | (303,142) | |||||||||||||||||||||
Unconsolidated performance related compensation - unrealized | (11,552) | 206,799 | |||||||||||||||||||||
Unconsolidated net investment loss-realized | 26,484 | 32,467 | |||||||||||||||||||||
Realized Income | 581,956 | 503,486 | |||||||||||||||||||||
Unconsolidated performance income-realized | (547,216) | (402,518) | |||||||||||||||||||||
Unconsolidated performance related compensation - realized | 415,668 | 290,382 | |||||||||||||||||||||
Unconsolidated investment income-realized | (25,958) | (67,691) | |||||||||||||||||||||
Fee Related Earnings | $ | 424,450 | $ | 323,659 |
For the Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Income before taxes | $ | 184,341 | $ | 149,859 | $ | 297,920 | |||||
Adjustments: | |||||||||||
Amortization of intangibles | 9,032 | 17,850 | 26,638 | ||||||||
Depreciation expense | 16,055 | 12,631 | 8,215 | ||||||||
Equity compensation expenses | 89,724 | 69,711 | 39,065 | ||||||||
Acquisition and merger-related expenses | 2,936 | 259,899 | (16,902 | ) | |||||||
Placement fees and underwriting costs | 20,343 | 19,765 | 6,424 | ||||||||
Other (income) expense(1) | 13,489 | (1,042 | ) | (1,728 | ) | ||||||
Expense of non-controlling interests in consolidated subsidiaries | 3,343 | 1,739 | — | ||||||||
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (20,643 | ) | (62,705 | ) | (2,649 | ) | |||||
Unconsolidated performance (income) loss - unrealized | 247,212 | (325,915 | ) | (228,472 | ) | ||||||
Unconsolidated performance related compensation - unrealized | (221,343 | ) | 237,392 | 189,582 | |||||||
Unconsolidated net investment (income) loss - unrealized | 50,907 | (53,744 | ) | (17,765 | ) | ||||||
Realized income | 395,396 | 325,440 | 300,328 | ||||||||
Unconsolidated performance income - realized | (357,207 | ) | (317,787 | ) | (292,998 | ) | |||||
Unconsolidated performance related compensation - realized | 251,597 | 242,330 | 198,264 | ||||||||
Unconsolidated net investment income - realized | (34,474 | ) | (32,993 | ) | (33,244 | ) | |||||
Fee related earnings | $ | 255,312 | $ | 216,990 | $ | 172,350 |
Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $128,805 and $105,467 for the years ended December 31, 2018 and 2017, respectively) | $ | 564,899 | $ | 481,466 | $ | 83,433 | 17 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $184,141 and $164,396 for the years ended December 31, 2020 and 2019, respectively) | Management fees (includes ARCC Part I Fees of $184,141 and $164,396 for the years ended December 31, 2020 and 2019, respectively) | $ | 841,138 | $ | 713,853 | $ | 127,285 | 18 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other fees | 23,247 | 20,830 | 2,417 | 12 | % | Other fees | 18,644 | 17,124 | 1,520 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | (216,843 | ) | (193,347 | ) | (23,496 | ) | (12 | )% | Compensation and benefits | (304,412) | (261,662) | (42,750) | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (43,934 | ) | (33,626 | ) | (10,308 | ) | (31 | )% | General, administrative and other expenses | (53,997) | (55,103) | 1,106 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 327,369 | $ | 275,323 | 52,046 | 19 | % | Fee Related Earnings | $ | 501,373 | $ | 414,212 | 87,161 | 21 |
Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 501,373 | $ | 414,212 | $ | 87,161 | 21 | % | |||||||||||||||||||||||||||||||||||||||
Performance income-realized | 92,308 | 104,442 | (12,134) | (12) | |||||||||||||||||||||||||||||||||||||||||||
Performance related compensation-realized | (60,281) | (61,641) | 1,360 | 2 | |||||||||||||||||||||||||||||||||||||||||||
Realized net performance income | 32,027 | 42,801 | (10,774) | (25) | |||||||||||||||||||||||||||||||||||||||||||
Investment income (loss)-realized | (2,309) | 2,457 | (4,766) | NM | |||||||||||||||||||||||||||||||||||||||||||
Interest and other investment income-realized | 16,314 | 18,670 | (2,356) | (13) | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (8,722) | (6,497) | (2,225) | (34) | |||||||||||||||||||||||||||||||||||||||||||
Realized net investment income | 5,283 | 14,630 | (9,347) | (64) | |||||||||||||||||||||||||||||||||||||||||||
Realized Income | $ | 538,683 | $ | 471,643 | 67,040 | 14 |
For the Years Ended December 31, | Favorable (Unfavorable) | ||||||||||||
2018 | 2017 | $ Change | % Change | ||||||||||
Fee Related Earnings | $ | 327,369 | $ | 275,323 | 52,046 | 19 | % | ||||||
Performance income-realized | 121,270 | 21,087 | 100,183 | NM | |||||||||
Performance related compensation-realized | (75,541 | ) | (9,218 | ) | (66,323 | ) | NM | ||||||
Realized net performance income | 45,729 | 11,869 | 33,860 | 285 | % | ||||||||
Investment income-realized | 2,492 | 7,102 | (4,610 | ) | (65 | )% | |||||||
Interest and other investment income-realized | 10,350 | 10,192 | 158 | 2 | % | ||||||||
Interest expense | (11,386 | ) | (12,405 | ) | 1,019 | 8 | % | ||||||
Realized net investment income | 1,456 | 4,889 | (3,433 | ) | (70 | )% | |||||||
Realized Income | $ | 374,554 | $ | 292,081 | 82,473 | 28 | % |
For the Years Ended December 31, | Favorable (Unfavorable) | |||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
Management fees (includes ARCC Part I Fees of $105,467 and $121,181 for the years ended December 31, 2017 and 2016, respectively) | $ | 481,466 | $ | 444,664 | $ | 36,802 | 8 | % | ||||||
Other fees | 20,830 | 9,953 | 10,877 | 109 | % | |||||||||
Compensation and benefits | (193,347 | ) | (184,571 | ) | (8,776 | ) | (5 | )% | ||||||
General, administrative and other expenses | (33,626 | ) | (29,136 | ) | (4,490 | ) | (15 | )% | ||||||
Fee Related Earnings | 275,323 | 240,910 | 34,413 | 14 | % |
For the Years Ended December 31, | Favorable (Unfavorable) | |||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
Fee Related Earnings | $ | 275,323 | $ | 240,910 | $ | 34,413 | 14 | % | ||||||
Performance income-realized | 21,087 | 51,435 | (30,348 | ) | (59 | )% | ||||||||
Performance income compensation-realized | (9,218 | ) | (11,772 | ) | 2,554 | 22 | % | |||||||
Realized net performance income | 11,869 | 39,663 | (27,794 | ) | (70 | )% | ||||||||
Investment income-realized | 7,102 | 4,928 | 2,174 | 44 | % | |||||||||
Interest and other investment income-realized | 10,192 | 22,547 | (12,355 | ) | (55 | )% | ||||||||
Interest expense | (12,405 | ) | (8,609 | ) | (3,796 | ) | (44 | )% | ||||||
Realized net investment income | 4,889 | 18,866 | (13,977 | ) | (74 | )% | ||||||||
Realized Income | $ | 292,081 | $ | 299,439 | (7,358 | ) | (2 | )% |
As of December 31, | |||||||
2018 | 2017 | ||||||
ARCC | $ | 50,246 | — | ||||
PCS | 21,009 | 4,475 | |||||
ACE II | 27,060 | 24,090 | |||||
ACE III | 63,338 | 43,595 | |||||
ACE IV | 8,517 | — | |||||
Other credit funds | 40,485 | 96,344 | |||||
Total Credit Group | $ | 210,655 | $ | 168,504 |
As of December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
($ in thousands) | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | |||||||||||||||||||||||||||||
Accrued Carried Interest | |||||||||||||||||||||||||||||||||||
ACE III | $ | 77,959 | $ | 46,776 | $ | 31,183 | $ | 76,628 | $ | 45,977 | $ | 30,651 | |||||||||||||||||||||||
ACE IV | 93,462 | 57,946 | 35,516 | 57,388 | 35,581 | 21,807 | |||||||||||||||||||||||||||||
PCS | 101,656 | 60,084 | 41,572 | 52,029 | 30,751 | 21,278 | |||||||||||||||||||||||||||||
Other credit funds | 100,238 | 61,898 | 38,340 | 84,297 | 48,305 | 35,992 | |||||||||||||||||||||||||||||
Total accrued carried interest | 373,315 | 226,704 | 146,611 | 270,342 | 160,614 | 109,728 | |||||||||||||||||||||||||||||
Incentive fees | 31,653 | 18,601 | 13,052 | 42,653 | 25,424 | 17,229 | |||||||||||||||||||||||||||||
Total Credit Group | $ | 404,968 | $ | 245,305 | $ | 159,663 | $ | 312,995 | $ | 186,038 | $ | 126,957 |
As of December 31, 2019 | Activity during 2020 | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||
($ in thousands) | Fee Type | Accrued Carried Interest | Change in Unrealized | Realized | Foreign Exchange and Other Adjustments | Accrued Carried Interest | ||||||||||||||||||||||||||||||||
ACE III | European | $ | 76,628 | $ | 9,147 | $ | (11,868) | $ | 4,052 | $ | 77,959 | |||||||||||||||||||||||||||
ACE IV | European | 57,388 | 51,471 | (21,064) | 5,667 | 93,462 | ||||||||||||||||||||||||||||||||
PCS | European | 52,029 | 48,888 | — | 739 | 101,656 | ||||||||||||||||||||||||||||||||
Other credit funds | European | 84,034 | 36,809 | (22,424) | 1,561 | 99,980 | ||||||||||||||||||||||||||||||||
Other credit funds | American | 263 | (5) | — | — | 258 | ||||||||||||||||||||||||||||||||
Total Credit Group | $ | 270,342 | $ | 146,310 | $ | (55,356) | $ | 12,019 | $ | 373,315 |
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2016 | |||||||||||||||||||||||||||||||||
Realized | Unrealized | Net | Realized | Unrealized | Net | Realized | Unrealized | Net | |||||||||||||||||||||||||||
ARCC | $ | 50,246 | $ | — | $ | 50,246 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
PCS | — | 16,289 | 16,289 | — | 4,406 | 4,406 | — | — | — | ||||||||||||||||||||||||||
ACE II | 7,246 | 3,514 | 10,760 | 3,201 | 6,543 | 9,744 | 12,124 | (8,110 | ) | 4,014 | |||||||||||||||||||||||||
ACE III | 28,111 | 21,876 | 49,987 | — | 29,557 | 29,557 | — | 12,035 | 12,035 | ||||||||||||||||||||||||||
ACE IV | — | 8,572 | 8,572 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other credit funds | 35,667 | (22,601 | ) | 13,066 | 17,886 | 13,690 | 31,576 | 39,311 | 18,926 | 58,237 | |||||||||||||||||||||||||
Total Credit Group | $ | 121,270 | $ | 27,650 | $ | 148,920 | $ | 21,087 | $ | 54,196 | $ | 75,283 | $ | 51,435 | $ | 22,851 | $ | 74,286 |
($ in millions) | Syndicated Loans | High Yield | Multi-Asset Credit | Alternative Credit | U.S. Direct Lending | European Direct Lending | Total Credit Group | ||||||||||||||||||||||||||||||||||||||||
Balance at 12/31/2019 | $ | 22,320 | $ | 3,492 | $ | 2,611 | $ | 7,571 | $ | 48,431 | $ | 26,118 | $ | 110,543 | |||||||||||||||||||||||||||||||||
Acquisitions | 2,693 | — | — | — | — | — | 2,693 | ||||||||||||||||||||||||||||||||||||||||
Net new par/equity commitments | 551 | 451 | 470 | 5,516 | 4,036 | 13,209 | 24,233 | ||||||||||||||||||||||||||||||||||||||||
Net new debt commitments | 2,406 | — | — | — | 4,002 | 1,119 | 7,527 | ||||||||||||||||||||||||||||||||||||||||
Capital reductions | (121) | — | — | — | (144) | (166) | (431) | ||||||||||||||||||||||||||||||||||||||||
Distributions | (69) | — | (16) | (376) | (1,181) | (843) | (2,485) | ||||||||||||||||||||||||||||||||||||||||
Redemptions | (282) | (1,163) | (276) | (354) | (101) | — | (2,176) | ||||||||||||||||||||||||||||||||||||||||
Change in fund value | 469 | 83 | 164 | 540 | 1,473 | 2,839 | 5,568 | ||||||||||||||||||||||||||||||||||||||||
Balance at 12/31/2020 | $ | 27,967 | $ | 2,863 | $ | 2,953 | $ | 12,897 | $ | 56,516 | $ | 42,276 | $ | 145,472 | |||||||||||||||||||||||||||||||||
Average AUM(1) | $ | 25,312 | $ | 2,911 | $ | 2,703 | $ | 9,375 | $ | 51,548 | $ | 31,585 | $ | 123,434 | |||||||||||||||||||||||||||||||||
Syndicated Loans | High Yield | Multi-Asset Credit | Alternative Credit | U.S. Direct Lending | European Direct Lending | Total Credit Group | |||||||||||||||||||||||||||||||||||||||||
Balance at 12/31/2018 | $ | 18,880 | $ | 4,024 | $ | 2,761 | $ | 5,448 | $ | 40,668 | $ | 24,055 | $ | 95,836 | |||||||||||||||||||||||||||||||||
Net new par/equity commitments | 1,124 | 165 | (13) | 2,298 | 2,253 | 764 | 6,591 | ||||||||||||||||||||||||||||||||||||||||
Net new debt commitments | 3,360 | — | — | 75 | 6,060 | 1,189 | 10,684 | ||||||||||||||||||||||||||||||||||||||||
Capital reductions | (805) | — | — | — | (908) | (52) | (1,765) | ||||||||||||||||||||||||||||||||||||||||
Distributions | (103) | (22) | (74) | (233) | (1,143) | (611) | (2,186) | ||||||||||||||||||||||||||||||||||||||||
Redemptions | (438) | (1,208) | (322) | (290) | (59) | — | (2,317) | ||||||||||||||||||||||||||||||||||||||||
Change in fund value | 302 | 533 | 259 | 273 | 1,560 | 773 | 3,700 | ||||||||||||||||||||||||||||||||||||||||
Balance at 12/31/2019 | $ | 22,320 | $ | 3,492 | $ | 2,611 | $ | 7,571 | $ | 48,431 | $ | 26,118 | $ | 110,543 | |||||||||||||||||||||||||||||||||
Average AUM(1) | $ | 20,928 | $ | 3,734 | $ | 2,569 | $ | 6,841 | $ | 44,958 | $ | 24,823 | $ | 103,853 | |||||||||||||||||||||||||||||||||
(1) Represents a five-point average of quarter-end balances for each period. |
Syndicated Loans | High Yield | Credit Opportunities | Alternative Credit | U.S. Direct Lending | E.U. Direct Lending(2) | Total Credit Group | |||||||||||||||||||||
Balance at 12/31/2017 | $ | 16,530 | $ | 4,630 | $ | 3,333 | $ | 4,791 | $ | 30,640 | $ | 11,808 | $ | 71,732 | |||||||||||||
Net new par/ equity commitments | 268 | 293 | 128 | 1,597 | 7,504 | 11,315 | 21,105 | ||||||||||||||||||||
Net new debt commitments | 3,162 | — | — | — | 4,254 | 1,924 | 9,340 | ||||||||||||||||||||
Distributions | (956 | ) | (808 | ) | (639 | ) | (950 | ) | (3,182 | ) | (1,209 | ) | (7,744 | ) | |||||||||||||
Change in fund value | (124 | ) | (91 | ) | (61 | ) | 10 | 1,452 | 217 | 1,403 | |||||||||||||||||
Balance at 12/31/2018 | $ | 18,880 | $ | 4,024 | $ | 2,761 | $ | 5,448 | $ | 40,668 | $ | 24,055 | $ | 95,836 | |||||||||||||
Average AUM(3) | $ | 17,827 | $ | 4,413 | $ | 3,006 | $ | 5,199 | $ | 36,387 | $ | 17,815 | $ | 84,647 |
Syndicated Loans | High Yield | Credit Opportunities | Alternative Credit | U.S. Direct Lending(1) | E.U. Direct Lending | Total Credit Group | |||||||||||||||||||||
Balance at 12/31/2016 | $ | 17,260 | $ | 4,978 | $ | 3,304 | $ | 4,254 | $ | 21,110 | $ | 9,560 | $ | 60,466 | |||||||||||||
Acquisitions | — | — | — | — | 3,605 | — | 3,605 | ||||||||||||||||||||
Net new par/ equity commitments | 731 | 558 | (6 | ) | 356 | 6,167 | 864 | 8,670 | |||||||||||||||||||
Net new debt commitments | 3,536 | — | — | — | 1,882 | 571 | 5,989 | ||||||||||||||||||||
Distributions | (5,426 | ) | (1,224 | ) | (146 | ) | (173 | ) | (3,011 | ) | (872 | ) | (10,852 | ) | |||||||||||||
Change in fund value | 429 | 318 | 181 | 354 | 887 | 1,685 | 3,854 | ||||||||||||||||||||
Balance at 12/31/2017 | $ | 16,530 | $ | 4,630 | $ | 3,333 | $ | 4,791 | $ | 30,640 | $ | 11,808 | $ | 71,732 | |||||||||||||
Average AUM(3) | $ | 16,861 | $ | 4,685 | $ | 3,343 | $ | 4,482 | $ | 26,957 | $ | 10,743 | $ | 67,071 |
Syndicated Loans | High Yield | Credit Opportunities | Alternative Credit | U.S. Direct Lending(1) | E.U. Direct Lending | Total Credit Group | |||||||||||||||||||||
Balance at 12/31/2015 | $ | 17,617 | $ | 3,303 | $ | 3,715 | $ | 3,103 | $ | 23,592 | $ | 9,056 | $ | 60,386 | |||||||||||||
Net new par/ equity commitments | 624 | 1,664 | 281 | 905 | 751 | 1,228 | 5,453 | ||||||||||||||||||||
Net new debt commitments | 2,287 | — | — | — | 2,411 | 332 | 5,030 | ||||||||||||||||||||
Distributions | (3,410 | ) | (459 | ) | (923 | ) | (106 | ) | (6,269 | ) | (801 | ) | (11,968 | ) | |||||||||||||
Change in fund value | 142 | 470 | 231 | 352 | 625 | (255 | ) | 1,565 | |||||||||||||||||||
Balance at 12/31/2016 | $ | 17,260 | $ | 4,978 | $ | 3,304 | $ | 4,254 | $ | 21,110 | $ | 9,560 | $ | 60,466 | |||||||||||||
Average AUM(3) | $ | 17,162 | $ | 4,217 | $ | 3,365 | $ | 3,743 | $ | 22,299 | $ | 9,511 | $ | 60,297 |
Syndicated Loans | High Yield | Credit Opportunities | Alternative Credit | U.S. Direct Lending | E.U. Direct Lending | Total Credit Group | |||||||||||||||||||||
FPAUM Balance at 12/31/2017 | $ | 15,251 | $ | 4,629 | $ | 2,809 | $ | 3,434 | $ | 16,869 | $ | 6,458 | $ | 49,450 | |||||||||||||
Commitments | 4,196 | 282 | 17 | 133 | 110 | 30 | 4,768 | ||||||||||||||||||||
Subscriptions/deployment/increase in leverage | — | 12 | 42 | 480 | 6,212 | 3,688 | 10,434 | ||||||||||||||||||||
Redemptions/distributions/decrease in leverage | (945 | ) | (805 | ) | (610 | ) | (1,239 | ) | (1,954 | ) | (1,235 | ) | (6,788 | ) | |||||||||||||
Change in fund value | (170 | ) | (90 | ) | (62 | ) | 18 | 420 | (126 | ) | (10 | ) | |||||||||||||||
Change in fee basis | (4 | ) | (3 | ) | — | — | — | — | (7 | ) | |||||||||||||||||
FPAUM Balance at 12/31/2018 | $ | 18,328 | $ | 4,025 | $ | 2,196 | $ | 2,826 | $ | 21,657 | $ | 8,815 | $ | 57,847 | |||||||||||||
Average FPAUM(1) | $ | 16,913 | $ | 4,412 | $ | 2,473 | $ | 3,356 | $ | 18,787 | $ | 7,675 | $ | 53,616 |
Syndicated Loans | High Yield | Credit Opportunities | Alternative Credit | U.S. Direct Lending | E.U. Direct Lending | Total Credit Group | |||||||||||||||||||||
FPAUM Balance at 12/31/2016 | $ | 15,998 | $ | 4,978 | $ | 2,705 | $ | 3,128 | $ | 11,292 | $ | 4,608 | $ | 42,709 | |||||||||||||
Acquisitions | — | — | — | — | 2,789 | — | 2,789 | ||||||||||||||||||||
Commitments | 4,116 | 495 | 4 | 273 | 172 | — | 5,060 | ||||||||||||||||||||
Subscriptions/deployment/increase in leverage | — | 77 | 65 | 325 | 2,998 | 1,629 | 5,094 | ||||||||||||||||||||
Redemptions/distributions/decrease in leverage | (5,240 | ) | (1,238 | ) | (137 | ) | (587 | ) | (948 | ) | (583 | ) | (8,733 | ) | |||||||||||||
Change in fund value | 377 | 317 | 172 | 295 | 566 | 595 | 2,322 | ||||||||||||||||||||
Change in fee basis | — | — | — | — | — | 209 | 209 | ||||||||||||||||||||
FPAUM Balance at 12/31/2017 | $ | 15,251 | $ | 4,629 | $ | 2,809 | $ | 3,434 | $ | 16,869 | $ | 6,458 | $ | 49,450 | |||||||||||||
Average FPAUM(1) | $ | 15,550 | $ | 4,685 | $ | 2,788 | $ | 3,316 | $ | 14,627 | $ | 5,632 | $ | 46,598 |
Syndicated Loans | High Yield | Credit Opportunities | Alternative Credit | U.S. Direct Lending | E.U. Direct Lending | Total Credit Group | |||||||||||||||||||||
FPAUM Balance at 12/31/2015 | $ | 17,180 | $ | 3,303 | $ | 2,606 | $ | 2,558 | $ | 10,187 | $ | 4,091 | $ | 39,925 | |||||||||||||
Commitments | 1,985 | 1,537 | 62 | 7 | 40 | — | 3,631 | ||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 24 | 127 | 366 | 379 | 1,423 | 1,393 | 3,712 | ||||||||||||||||||||
Redemptions/distributions/decrease in leverage | (3,239 | ) | (459 | ) | (492 | ) | (112 | ) | (928 | ) | (585 | ) | (5,815 | ) | |||||||||||||
Change in fund value | 48 | 470 | 223 | 296 | 570 | (291 | ) | 1,316 | |||||||||||||||||||
Change in fee basis | — | — | (60 | ) | — | — | — | (60 | ) | ||||||||||||||||||
FPAUM Balance at 12/31/2016 | $ | 15,998 | $ | 4,978 | $ | 2,705 | $ | 3,128 | $ | 11,292 | $ | 4,608 | $ | 42,709 | |||||||||||||
Average FPAUM(1) | $ | 16,234 | $ | 4,217 | $ | 2,569 | $ | 2,805 | $ | 10,640 | $ | 4,473 | $ | 40,938 |
FPAUM | AUM not yet | Non-fee paying(1) | General partner and affiliates |
($ in millions) | Syndicated Loans | High Yield | Multi-Asset Credit | Alternative Credit | U.S. Direct Lending | European Direct Lending | Total Credit Group | |||||||||||||||||||||||||||||||||||||
FPAUM Balance at 12/31/2019 | $ | 21,458 | $ | 3,495 | $ | 2,144 | $ | 4,340 | $ | 27,876 | $ | 12,567 | $ | 71,880 | ||||||||||||||||||||||||||||||
Acquisitions | 2,596 | — | — | — | — | — | 2,596 | |||||||||||||||||||||||||||||||||||||
Commitments | 3,364 | 438 | 468 | 469 | 491 | — | 5,230 | |||||||||||||||||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 15 | 13 | 91 | 2,282 | 6,892 | 4,316 | 13,609 | |||||||||||||||||||||||||||||||||||||
Capital reductions | (139) | — | (59) | (227) | (934) | (301) | (1,660) | |||||||||||||||||||||||||||||||||||||
Distributions | (49) | — | (41) | (481) | (2,371) | (715) | (3,657) | |||||||||||||||||||||||||||||||||||||
Redemptions | (283) | (1,127) | (278) | (306) | (93) | (41) | (2,128) | |||||||||||||||||||||||||||||||||||||
Change in fund value | 209 | 82 | 132 | 254 | 476 | 1,034 | 2,187 | |||||||||||||||||||||||||||||||||||||
Change in fee basis | — | (40) | — | — | — | — | (40) | |||||||||||||||||||||||||||||||||||||
FPAUM Balance at 12/31/2020 | $ | 27,171 | $ | 2,861 | $ | 2,457 | $ | 6,331 | $ | 32,337 | $ | 16,860 | $ | 88,017 | ||||||||||||||||||||||||||||||
Average FPAUM(1) | $ | 24,510 | $ | 2,901 | $ | 2,193 | $ | 5,110 | $ | 29,653 | $ | 14,773 | $ | 79,140 | ||||||||||||||||||||||||||||||
Syndicated Loans | High Yield | Multi-Asset Credit | Alternative Credit | U.S. Direct Lending | European Direct Lending | Total Credit Group | ||||||||||||||||||||||||||||||||||||||
FPAUM Balance at 12/31/2018 | $ | 18,328 | $ | 4,025 | $ | 2,196 | $ | 2,826 | $ | 21,657 | $ | 8,815 | $ | 57,847 | ||||||||||||||||||||||||||||||
Commitments | 3,811 | 162 | 112 | 681 | 231 | — | 4,997 | |||||||||||||||||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 354 | 4 | 38 | 1,230 | 7,451 | 4,597 | 13,674 | |||||||||||||||||||||||||||||||||||||
Capital reductions | (683) | — | (10) | — | (596) | (268) | (1,557) | |||||||||||||||||||||||||||||||||||||
Distributions | (55) | (22) | (101) | (276) | (1,435) | (396) | (2,285) | |||||||||||||||||||||||||||||||||||||
Redemptions | (438) | (1,115) | (340) | (290) | (51) | (370) | (2,604) | |||||||||||||||||||||||||||||||||||||
Change in fund value | 141 | 441 | 249 | 169 | 858 | 323 | 2,181 | |||||||||||||||||||||||||||||||||||||
Change in fee basis | — | — | — | — | (239) | (134) | (373) | |||||||||||||||||||||||||||||||||||||
FPAUM Balance at 12/31/2019 | $ | 21,458 | $ | 3,495 | $ | 2,144 | $ | 4,340 | $ | 27,876 | $ | 12,567 | $ | 71,880 | ||||||||||||||||||||||||||||||
Average FPAUM(1) | $ | 20,099 | $ | 3,735 | $ | 2,118 | $ | 3,631 | $ | 24,880 | $ | 10,815 | $ | 65,278 | ||||||||||||||||||||||||||||||
(1) Represents a five-point average of quarter-end balances for each period. |
FPAUM: $88.0 | FPAUM: $71.9 |
Market value(1) | Invested capital | Collateral balances (at par) |
Returns(%)(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | Year of Inception | AUM | Year-To-Date | Since Inception(2) | Primary Investment Strategy | ||||||||||||||||||||||||||||||||||||||||||||||||
Fund | Gross | Net | Gross | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
ARCC(3) | 2004 | $ | 19,114 | N/A | 8.0 | N/A | 11.5 | U.S. Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||
ASIF(4) | 2018 | 1,070 | 3.6 | 3.0 | 3.1 | 2.4 | Alternative Credit | ||||||||||||||||||||||||||||||||||||||||||||||
Returns(%)(1) | |||||||||||||||||||||||
Year of | AUM | Fourth Quarter | Year-To-Date | Since Inception(2) | |||||||||||||||||||
Fund | Inception | Gross | Net | Gross | Net | Gross | Net | Investment Strategy | |||||||||||||||
ARCC(3) | 2004 | $ | 14,295 | N/A | 2.0 | N/A | 12.4 | N/A | 11.8 | U.S. Direct Lending | |||||||||||||
Sub-advised Client A(4) | 2007 | 571 | (4.3 | ) | (4.4 | ) | (2.4 | ) | (2.7 | ) | 7.0 | 6.7 | High Yield | ||||||||||
Separately Managed Account Client B(4) | 2016 | 703 | (3.5 | ) | (3.5 | ) | (2.7 | ) | (3.0 | ) | 3.1 | 2.8 | High Yield |
(1)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. (2)Since inception returns are annualized. (3)Net returns are calculated using the fund's NAV and assume dividends are reinvested at the closest quarter-end NAV to the relevant quarterly ex-dividend dates. Additional information related to ARCC can be found in its financial statements filed with the SEC, which are not part of this report. (4)Gross returns do not reflect the deduction of management fees or other expenses. Net returns are calculated by subtracting the applicable management fees and other expenses from the gross returns on a monthly basis. ASIF is a master/feeder structure and its AUM and returns include activity from its' investment in an affiliated Ares fund. Returns presented in the table are expressed in U.S. Dollars and are for the master fund, excluding the share class hedges. The year-to-date and since inception returns (gross / net) for the pound sterling hedged Cayman feeder, the fund's sole feeder, are as follows: 2.0% / 1.5% and 1.4% / 0.7%, respectively. 116 |
($ in millions) | Year of Inception | AUM | Original Capital Commitments | Capital Invested to Date | Realized Value(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | Primary Investment Strategy | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Harvesting Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACE III(7) | 2015 | $ | 5,297 | $ | 2,822 | $ | 2,642 | $ | 720 | $ | 2,700 | $ | 3,420 | 1.4x | 1.3x | 11.5 | 8.1 | European Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Deploying Capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PCS | 2017 | 3,877 | 3,365 | 2,381 | 344 | 2,529 | 2,873 | 1.2x | 1.2x | 12.8 | 9.0 | U.S. Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACE IV Unlevered(8) | 2018 | 10,991 | 2,851 | 2,143 | 134 | 2,190 | 2,324 | 1.1x | 1.1x | 8.4 | 5.8 | European Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACE IV Levered(8) | 4,819 | 3,545 | 308 | 3,715 | 4,023 | 1.2x | 1.1x | 12.5 | 8.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SDL Unlevered | 2018 | 5,094 | 922 | 539 | 92 | 483 | 575 | 1.1x | 1.1x | 9.5 | 6.8 | U.S. Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SDL Levered | 2,045 | 1,196 | 284 | 1,057 | 1,341 | 1.2x | 1.1x | 18.0 | 12.6 |
Year of Inception | AUM | Original Capital Commitments | Cumulative Invested Capital | Realized Proceeds(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | |||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | Investment Strategy | ||||||||||||||||||||||||||||||
ACE II(7) | 2013 | $ | 739 | $ | 1,216 | $ | 963 | $ | 775 | $ | 511 | $ | 1,286 | 1.4x | 1.3x | 10.3 | 7.6 | E.U. Direct Lending | |||||||||||||||||
ACE III(8) | 2015 | 5,047 | 2,822 | 2,519 | 242 | 2,817 | 3,059 | 1.3x | 1.2x | 16.9 | 12.9 | E.U. Direct Lending | |||||||||||||||||||||||
PCS | 2017 | 3,471 | 3,365 | 915 | 60 | 941 | 1,001 | 1.1x | 1.1x | NA | NA | U.S. Direct Lending | |||||||||||||||||||||||
ACE IV Unlevered (9) | 2018 | 8,969 | 2,851 | 450 | — | 466 | 466 | 1.0x | 1.0x | NA | NA | E.U. Direct Lending | |||||||||||||||||||||||
ACE IV Levered (9) | 4,819 | 760 | — | 804 | 804 | 1.1x | 1.1x | NA | NA | E.U. Direct Lending |
(1)Realized value represents the sum of all cash distributions to all partners and if applicable, exclude tax and incentive distributions made to the general partner. (2)Unrealized value represents the fund's NAV reduced by the accrued incentive allocation, if applicable. There can be no assurance that unrealized values will be realized at the valuations indicated. (3)The gross multiple of invested capital (“MoIC”) is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The gross MoIC is before giving effect to management fees, carried interest and other expenses, as applicable, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. The gross MoIC would have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. (4)The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes those interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The net MoIC is after giving effect to management fees and carried interest, other expenses and credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. The net MoIC would have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. (5)The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Gross IRR reflects returns to the fee-paying limited partners and, if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows. The gross IRRs are calculated before giving effect to management fees, carried interest and other expenses, as applicable, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Gross fund-level IRRs would likely have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. (6)The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Net IRRs reflect returns to the fee-paying limited partners and, if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the net IRR calculations are based on the actual dates of the cash flows. The net IRRs are calculated after giving effect to management fees and carried interest, other expenses and credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Net fund-level IRRs would likely have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. (7)ACE III is made up of two feeder funds, one denominated in U.S. dollars and one denominated in Euros. The gross and net IRR and MoIC presented in the table are for the Euro denominated feeder fund. The gross and net IRR |
Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Favorable (Unfavorable) | Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management fees | $ | 198,182 | $ | 198,498 | $ | (316 | ) | < 1% | Management fees | $ | 221,160 | $ | 211,614 | $ | 9,546 | 5 | % | ||||||||||||||||||||||||||||||||||||||||||||
Other fees | 1,008 | 1,495 | (487 | ) | (33 | )% | Other fees | 178 | 162 | 16 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | (74,672 | ) | (68,569 | ) | (6,103 | ) | (9 | )% | Compensation and benefits | (90,129) | (78,259) | (11,870) | (15) | ||||||||||||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (18,482 | ) | (17,561 | ) | (921 | ) | (5 | )% | General, administrative and other expenses | (22,145) | (19,098) | (3,047) | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 106,036 | $ | 113,863 | (7,827 | ) | (7 | )% | Fee Related Earnings | $ | 109,064 | $ | 114,419 | (5,355) | (5) |
Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 109,064 | $ | 114,419 | $ | (5,355) | (5) | % | |||||||||||||||||||||||||||||||||||||||
Performance income-realized | 392,635 | 264,439 | 128,196 | 48 | |||||||||||||||||||||||||||||||||||||||||||
Performance related compensation-realized | (315,905) | (211,550) | (104,355) | (49) | |||||||||||||||||||||||||||||||||||||||||||
Realized net performance income | 76,730 | 52,889 | 23,841 | 45 | |||||||||||||||||||||||||||||||||||||||||||
Investment income-realized | 29,100 | 47,696 | (18,596) | (39) | |||||||||||||||||||||||||||||||||||||||||||
Interest and other investment income-realized | 5,987 | 5,046 | 941 | 19 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (8,186) | (7,486) | (700) | (9) | |||||||||||||||||||||||||||||||||||||||||||
Realized net investment income | 26,901 | 45,256 | (18,355) | (41) | |||||||||||||||||||||||||||||||||||||||||||
Realized Income | $ | 212,695 | $ | 212,564 | 131 | 0 |
For the Years Ended December 31, | Favorable (Unfavorable) | ||||||||||||
2018 | 2017 | $ Change | % Change | ||||||||||
Fee Related Earnings | $ | 106,036 | $ | 113,863 | (7,827 | ) | (7 | )% | |||||
Performance income-realized | 139,820 | 287,092 | (147,272 | ) | (51 | )% | |||||||
Performance income compensation-realized | (111,764 | ) | (228,774 | ) | 117,010 | 51 | % | ||||||
Realized net performance income | 28,056 | 58,318 | (30,262 | ) | (52 | )% | |||||||
Investment income-realized | 17,816 | 22,625 | (4,809 | ) | (21 | )% | |||||||
Interest and other investment income-realized | 4,624 | 3,226 | 1,398 | 43 | % | ||||||||
Interest expense | (6,000 | ) | (5,218 | ) | (782 | ) | (15 | )% | |||||
Realized net investment income | 16,440 | 20,633 | (4,193 | ) | (20 | )% | |||||||
Realized Income | $ | 150,532 | $ | 192,814 | (42,282 | ) | (22 | )% |
For the Years Ended December 31, | Favorable (Unfavorable) | |||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
Management fees | $ | 198,498 | $ | 147,790 | $ | 50,708 | 34 | % | ||||||
Other fees | 1,495 | 1,544 | (49 | ) | (3 | )% | ||||||||
Compensation and benefits | (68,569 | ) | (61,276 | ) | (7,293 | ) | (12 | )% | ||||||
General, administrative and other expenses | (17,561 | ) | (14,679 | ) | (2,882 | ) | (20 | )% | ||||||
Fee Related Earnings | $ | 113,863 | $ | 73,379 | 40,484 | 55 | % |
For the Years Ended December 31, | Favorable (Unfavorable) | ||||||||||||
2017 | 2016 | $ Change | % Change | ||||||||||
Fee Related Earnings | $ | 113,863 | $ | 73,379 | 40,484 | 55 | % | ||||||
Performance income-realized | 287,092 | 230,162 | 56,930 | 25 | % | ||||||||
Performance income compensation-realized | (228,774 | ) | (184,072 | ) | (44,702 | ) | (24 | )% | |||||
Realized net performance income | 58,318 | 46,090 | 12,228 | 27 | % | ||||||||
Investment income-realized | 22,625 | 18,773 | 3,852 | 21 | % | ||||||||
Interest and other investment income-realized | 3,226 | 16,891 | (13,665 | ) | (81 | )% | |||||||
Interest expense | (5,218 | ) | (5,589 | ) | 371 | 7 | % | ||||||
Realized net investment income | 20,633 | 30,075 | (9,442 | ) | (31 | )% | |||||||
Realized Income | $ | 192,814 | $ | 149,544 | 43,270 | 29 | % |
As of December 31, | |||||||
2018 | 2017 | ||||||
ACOF III | $ | 316,377 | $ | 570,578 | |||
ACOF IV | 183,595 | 217,354 | |||||
EIF V | — | 16,215 | |||||
Other funds | 6,900 | 11,260 | |||||
Total Private Equity Group | $ | 506,872 | $ | 815,407 |
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2016 | |||||||||||||||||||||||||||||||||
Realized | Unrealized | Net | Realized | Unrealized | Net | Realized | Unrealized | Net | |||||||||||||||||||||||||||
ACOF III | $ | 138,216 | $ | (254,201 | ) | $ | (115,985 | ) | $ | 58,946 | $ | 227,620 | $ | 286,566 | $ | 161,216 | $ | 4,574 | $ | 165,790 | |||||||||||||||
ACOF IV | 1,604 | (33,759 | ) | (32,155 | ) | 223,479 | (16,852 | ) | 206,627 | 41,807 | 181,571 | 223,378 | |||||||||||||||||||||||
EIF V | — | (16,215 | ) | (16,215 | ) | — | (294 | ) | (294 | ) | — | 16,510 | 16,510 | ||||||||||||||||||||||
Other funds | — | (4,361 | ) | (4,361 | ) | 4,667 | (18,915 | ) | (14,248 | ) | 27,139 | (14,368 | ) | 12,771 | |||||||||||||||||||||
Total Private Equity Group | $ | 139,820 | $ | (308,536 | ) | $ | (168,716 | ) | $ | 287,092 | $ | 191,559 | $ | 478,651 | $ | 230,162 | $ | 188,287 | $ | 418,449 |
Corporate Private Equity | Infrastructure and Power | Special Opportunities | Energy Opportunities | Total Private Equity Group | |||||||||||||||
Balance at 12/31/2017 | $ | 18,557 | $ | 4,423 | $ | 1,550 | $ | — | $ | 24,530 | |||||||||
Net new equity commitments | 213 | 354 | 175 | 756 | 1,498 | ||||||||||||||
Net new debt commitments | — | — | 100 | — | 100 | ||||||||||||||
Distributions | (844 | ) | (982 | ) | (74 | ) | — | (1,900 | ) | ||||||||||
Change in fund value | (767 | ) | 47 | (18 | ) | (3 | ) | (741 | ) | ||||||||||
Balance at 12/31/2018 | $ | 17,159 | $ | 3,842 | $ | 1,733 | $ | 753 | $ | 23,487 | |||||||||
Average AUM(2) | $ | 18,003 | $ | 4,033 | $ | 1,597 | $ | 755 | $ | 23,784 |
Corporate Private Equity | Infrastructure and Power | Special Opportunities | Total Private Equity Group | ||||||||||||
Balance at 12/31/2016 | $ | 18,162 | $ | 5,143 | $ | 1,736 | $ | 25,041 | |||||||
Net new equity commitments | 56 | 300 | — | 356 | |||||||||||
Distributions | (2,130 | ) | (697 | ) | (187 | ) | (3,014 | ) | |||||||
Change in fund value | 2,469 | (323 | ) | 1 | 2,147 | ||||||||||
Balance at 12/31/2017 | $ | 18,557 | $ | 4,423 | $ | 1,550 | $ | 24,530 | |||||||
Average AUM(2) | $ | 18,591 | $ | 4,697 | $ | 1,626 | $ | 24,914 |
Corporate Private Equity(1) | Infrastructure and Power | Special Opportunities | Total Private Equity Group | ||||||||||||
Balance at 12/31/2015 | $ | 15,908 | $ | 5,207 | $ | 1,863 | $ | 22,978 | |||||||
Net new equity commitments | 2,184 | 130 | — | 2,314 | |||||||||||
Distributions | (1,886 | ) | (372 | ) | (261 | ) | (2,519 | ) | |||||||
Change in fund value | 1,956 | 178 | 134 | 2,268 | |||||||||||
Balance at 12/31/2016 | $ | 18,162 | $ | 5,143 | $ | 1,736 | $ | 25,041 | |||||||
Average AUM(2) | $ | 17,651 | $ | 5,102 | $ | 1,800 | $ | 24,553 |
Corporate Private Equity | Infrastructure and Power | Special Opportunities | Energy Opportunities | Total Private Equity Group | |||||||||||||||
FPAUM Balance at 12/31/2017 | $ | 12,073 | $ | 4,019 | $ | 766 | $ | — | $ | 16,858 | |||||||||
Commitments | 13 | 354 | — | 682 | 1,049 | ||||||||||||||
Subscriptions/deployment/increase in leverage | 149 | 38 | 709 | — | 896 | ||||||||||||||
Redemptions/distributions/decrease in leverage | (490 | ) | (939 | ) | (180 | ) | — | (1,609 | ) | ||||||||||
Change in fund value | (6 | ) | — | 12 | — | 6 | |||||||||||||
Change in fee basis | (23 | ) | — | (106 | ) | — | (129 | ) | |||||||||||
FPAUM Balance at 12/31/2018 | $ | 11,716 | $ | 3,472 | $ | 1,201 | $ | 682 | $ | 17,071 | |||||||||
Average FPAUM(1) | $ | 12,026 | $ | 3,621 | $ | 977 | $ | 682 | $ | 16,760 |
Corporate Private Equity | Infrastructure and Power | Special Opportunities | Total Private Equity Group | ||||||||||||
FPAUM Balance at 12/31/2016 | $ | 6,454 | $ | 4,232 | $ | 628 | $ | 11,314 | |||||||
Commitments | 7,655 | 300 | — | 7,955 | |||||||||||
Subscriptions/deployment/increase in leverage | 478 | 230 | 414 | 1,122 | |||||||||||
Redemptions/distributions/decrease in leverage | (966 | ) | (392 | ) | (248 | ) | (1,606 | ) | |||||||
Change in fund value | 4 | (351 | ) | (28 | ) | (375 | ) | ||||||||
Change in fee basis | (1,552 | ) | — | — | (1,552 | ) | |||||||||
FPAUM Balance at 12/31/2017 | $ | 12,073 | $ | 4,019 | $ | 766 | $ | 16,858 | |||||||
Average FPAUM(1) | $ | 11,157 | $ | 4,047 | $ | 682 | $ | 15,886 |
Corporate Private Equity | Infrastructure and Power | Special Opportunities | Total Private Equity Group | ||||||||||||
FPAUM Balance at 12/31/2015 | $ | 6,957 | $ | 4,454 | $ | 1,051 | $ | 12,462 | |||||||
Commitments | 29 | 130 | — | 159 | |||||||||||
Subscriptions/deployment/increase in leverage | 52 | 45 | (4 | ) | 93 | ||||||||||
Redemptions/distributions/decrease in leverage | (288 | ) | (46 | ) | (331 | ) | (665 | ) | |||||||
Change in fund value | — | (80 | ) | (88 | ) | (168 | ) | ||||||||
Change in fee basis | (296 | ) | (271 | ) | — | (567 | ) | ||||||||
FPAUM Balance at 12/31/2016 | $ | 6,454 | $ | 4,232 | $ | 628 | $ | 11,314 | |||||||
Average FPAUM(1) | $ | 6,652 | $ | 4,306 | $ | 842 | $ | 11,800 |
Year of Inception | AUM | Original Capital Commitments | Cumulative Invested Capital | Realized Proceeds(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | |||||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | Investment Strategy | ||||||||||||||||||||||||||||||||
ACOF III | 2008 | $ | 3,152 | $ | 3,510 | $ | 3,867 | $ | 6,973 | $ | 2,847 | $ | 9,820 | 2.5x | 2.2x | 28.9 | 20.5 | Corporate Private Equity | |||||||||||||||||||
USPF IV | 2010 | 1,666 | 1,688 | 1,960 | 1,110 | 1,468 | 2,578 | 1.3x | 1.2x | 8.6 | 5.2 | Infrastructure and Power | |||||||||||||||||||||||||
ACOF IV | 2012 | 5,283 | 4,700 | 4,143 | 2,533 | 4,461 | 6,994 | 1.7x | 1.5x | 18.5 | 12.1 | Corporate Private Equity | |||||||||||||||||||||||||
EIF V | 2015 | 796 | 801 | 740 | 206 | 629 | 835 | 1.1x | 1.0x | 13.1 | 5.7 | Infrastructure and Power | |||||||||||||||||||||||||
SSF IV (7) | 2015 | 1,418 | 1,515 | 2,305 | 1,033 | 1,116 | 2,149 | 0.9x | 0.9x | (7.3 | ) | (9.2 | ) | Special Opportunities | |||||||||||||||||||||||
ACOF V | 2017 | 7,797 | 7,850 | 3,523 | 137 | 3,591 | 3,728 | 1.1x | 1.0x | NA | NA | Corporate Private Equity |
For the Years Ended December 31, | Favorable (Unfavorable) | |||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||
Management fees | $ | 73,663 | $ | 64,861 | $ | 8,802 | 14 | % | ||||||
Other fees | 33 | 106 | (73 | ) | (69 | )% | ||||||||
Compensation and benefits | (38,623 | ) | (39,586 | ) | 963 | 2 | % | |||||||
General, administrative and other expenses | (11,123 | ) | (10,519 | ) | (604 | ) | (6 | )% | ||||||
Fee Related Earnings | $ | 23,950 | $ | 14,862 | 9,088 | 61 | % |
For the Years Ended December 31, | Favorable (Unfavorable) | ||||||||||||
2018 | 2017 | $ Change | % Change | ||||||||||
Fee Related Earnings | $ | 23,950 | $ | 14,862 | 9,088 | 61 | % | ||||||
Performance income-realized | 96,117 | 9,608 | 86,509 | NM | |||||||||
Performance income compensation-realized | (64,292 | ) | (4,338 | ) | (59,954 | ) | NM | ||||||
Realized net performance income | 31,825 | 5,270 | 26,555 | NM | |||||||||
Investment income-realized | 11,409 | 5,534 | 5,875 | 106 | % | ||||||||
Interest and other investment income-realized | 2,257 | 511 | 1,746 | NM | |||||||||
Interest expense | (1,836 | ) | (1,650 | ) | (186 | ) | (11 | )% | |||||
Realized net investment income | 11,830 | 4,395 | 7,435 | 169 | % | ||||||||
Realized Income | $ | 67,605 | $ | 24,527 | 43,078 | 176 | % |
As of December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
($ in thousands) | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | |||||||||||||||||||||||||||||
ACOF III | $ | 55,022 | $ | 44,018 | $ | 11,004 | $ | 156,053 | $ | 124,842 | $ | 31,211 | |||||||||||||||||||||||
ACOF IV | 345,748 | 276,598 | 69,150 | 343,546 | 274,837 | 68,709 | |||||||||||||||||||||||||||||
ACOF V | — | — | — | 75,099 | 60,079 | 15,020 | |||||||||||||||||||||||||||||
EIF V | 54,086 | 40,429 | 13,657 | 28,242 | 21,040 | 7,202 | |||||||||||||||||||||||||||||
AEOF | — | — | — | 27,377 | 16,426 | 10,951 | |||||||||||||||||||||||||||||
ASOF | 113,313 | 79,319 | 33,994 | 10,709 | 7,496 | 3,213 | |||||||||||||||||||||||||||||
Other funds | 2,799 | 2,274 | 525 | 17,867 | 11,524 | 6,343 | |||||||||||||||||||||||||||||
Total Private Equity Group | $ | 570,968 | $ | 442,638 | $ | 128,330 | $ | 658,893 | $ | 516,244 | $ | 142,649 |
As of December 31, 2019 | Activity during 2020 | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | Fee Type | Accrued Performance Income | Change in Unrealized | Realized | Foreign Exchange and Other Adjustments | Accrued Performance Income | |||||||||||||||||||||||||||||||||||
ACOF III | American | $ | 156,053 | $ | 8,891 | $ | (109,922) | $ | — | $ | 55,022 | ||||||||||||||||||||||||||||||
ACOF IV | American | 343,546 | 285,717 | (283,515) | — | 345,748 | |||||||||||||||||||||||||||||||||||
ACOF V | American | 75,099 | (75,099) | — | — | — | |||||||||||||||||||||||||||||||||||
AEOF | American | 27,377 | (27,377) | — | — | — | |||||||||||||||||||||||||||||||||||
ASOF | European | 10,709 | 102,604 | — | — | 113,313 | |||||||||||||||||||||||||||||||||||
EIF V | European | 28,242 | 25,844 | — | — | 54,086 | |||||||||||||||||||||||||||||||||||
Other funds | European | 2,168 | (2,141) | — | (27) | — | |||||||||||||||||||||||||||||||||||
Other funds | American | 15,699 | (13,702) | 802 | — | 2,799 | |||||||||||||||||||||||||||||||||||
Total Credit Group | $ | 658,893 | $ | 304,737 | $ | (392,635) | $ | (27) | $ | 570,968 |
($ in millions) | Corporate Private Equity | Infrastructure & Power | Special Opportunities | Total Private Equity Group | ||||||||||||||||||||||
Balance at 12/31/2019 | $ | 18,406 | $ | 3,233 | $ | 3,527 | $ | 25,166 | ||||||||||||||||||
Net new par/equity commitments | 3,964 | 425 | 1,800 | 6,189 | ||||||||||||||||||||||
Capital reductions | (11) | — | (125) | (136) | ||||||||||||||||||||||
Distributions | (4,096) | (164) | (150) | (4,410) | ||||||||||||||||||||||
Redemptions | (5) | — | — | (5) | ||||||||||||||||||||||
Change in fund value | (25) | (9) | 669 | 635 | ||||||||||||||||||||||
Balance at 12/31/2020 | $ | 18,233 | $ | 3,485 | $ | 5,721 | $ | 27,439 | ||||||||||||||||||
Average AUM(1) | $ | 17,532 | $ | 3,297 | $ | 4,753 | $ | 25,582 | ||||||||||||||||||
Corporate Private Equity | Infrastructure & Power | Special Opportunities | Total Private Equity Group | |||||||||||||||||||||||
Balance at 12/31/2018 | $ | 17,912 | $ | 3,842 | $ | 1,733 | $ | 23,487 | ||||||||||||||||||
Net new par/equity commitments | 1,559 | — | 1,592 | 3,151 | ||||||||||||||||||||||
Net new debt commitments | — | — | 25 | 25 | ||||||||||||||||||||||
Capital reductions | (8) | — | — | (8) | ||||||||||||||||||||||
Distributions | (3,356) | (401) | (46) | (3,803) | ||||||||||||||||||||||
Redemptions | (2) | — | — | (2) | ||||||||||||||||||||||
Change in fund value | 2,301 | (208) | 223 | 2,316 | ||||||||||||||||||||||
Balance at 12/31/2019 | $ | 18,406 | $ | 3,233 | $ | 3,527 | $ | 25,166 | ||||||||||||||||||
Average AUM(1) | $ | 18,416 | $ | 3,549 | $ | 2,572 | $ | 24,537 | ||||||||||||||||||
(1) Represents a five-point average of quarter-end balances for each period. |
AUM: $27.4 | AUM: $25.2 |
FPAUM | AUM not yet paying fees | Non fee paying | General partner and affiliates |
($ in millions) | Corporate Private Equity | Infrastructure & Power | Special Opportunities | Total Private Equity Group | ||||||||||||||||||||||
FPAUM Balance at 12/31/2019 | $ | 11,968 | $ | 3,352 | $ | 1,720 | $ | 17,040 | ||||||||||||||||||
Commitments | 3,838 | 400 | — | 4,238 | ||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 38 | — | 1,547 | 1,585 | ||||||||||||||||||||||
Distributions | (584) | (68) | (544) | (1,196) | ||||||||||||||||||||||
Change in fund value | (36) | — | — | (36) | ||||||||||||||||||||||
Change in fee basis | (454) | (5) | — | (459) | ||||||||||||||||||||||
FPAUM Balance at 12/31/2020 | $ | 14,770 | $ | 3,679 | $ | 2,723 | $ | 21,172 | ||||||||||||||||||
Average FPAUM(1) | $ | 12,357 | $ | 3,436 | $ | 2,292 | $ | 18,085 | ||||||||||||||||||
Corporate Private Equity | Infrastructure & Power | Special Opportunities | Total Private Equity Group | |||||||||||||||||||||||
FPAUM Balance at 12/31/2018 | $ | 12,398 | $ | 3,472 | $ | 1,201 | $ | 17,071 | ||||||||||||||||||
Commitments | 362 | — | — | 362 | ||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 1,133 | 91 | 795 | 2,019 | ||||||||||||||||||||||
Capital reductions | — | — | (202) | (202) | ||||||||||||||||||||||
Distributions | (1,152) | (211) | (1) | (1,364) | ||||||||||||||||||||||
Change in fund value | 3 | — | — | 3 | ||||||||||||||||||||||
Change in fee basis | (775) | — | (73) | (848) | ||||||||||||||||||||||
FPAUM Balance at 12/31/2019 | $ | 11,968 | $ | 3,352 | $ | 1,720 | $ | 17,040 | ||||||||||||||||||
Average FPAUM(1) | $ | 12,252 | $ | 3,416 | $ | 1,440 | $ | 17,108 | ||||||||||||||||||
(1) Represents a five-point average of quarter-end balances for each period. |
FPAUM: $21.2 | FPAUM: $17.0 |
Capital commitments | Invested capital |
($ in millions) | Year of Inception | AUM | Original Capital Commitments | Capital Invested to Date | Realized Value(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | Primary Investment Strategy | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Harvesting Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
USPF IV | 2010 | $ | 1,168 | $ | 1,688 | $ | 2,121 | $ | 1,403 | $ | 1,147 | $ | 2,550 | 1.2x | 1.1x | 4.9 | 1.0 | Infrastructure and Power | |||||||||||||||||||||||||||||||||||||||||||||||||||||
ACOF IV | 2012 | 4,009 | 4,700 | 4,251 | 6,176 | 3,301 | 9,477 | 2.2x | 1.9x | 20.8 | 14.6 | Corporate Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Deploying Capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACOF V | 2017 | 7,566 | 7,850 | 6,793 | 671 | 6,504 | 7,175 | 1.1x | 1.0x | 2.8 | (1.1) | Corporate Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AEOF | 2018 | 682 | 1,120 | 965 | 58 | 536 | 594 | 0.6x | 0.5x | (27.2) | (37.7) | Corporate Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASOF | 2019 | 4,085 | 3,518 | 2,447 | 898 | 2,181 | 3,079 | 1.4x | 1.3x | 71.5 | 53.5 | Special Opportunities |
Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Favorable (Unfavorable) | Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management fees | $ | 64,861 | $ | 66,997 | $ | (2,136 | ) | (3 | )% | Management fees | $ | 97,680 | $ | 87,063 | $ | 10,617 | 12 | % | |||||||||||||||||||||||||||||||||||||||||||
Other fees | 106 | 854 | (748 | ) | (88 | )% | Other fees | 974 | 792 | 182 | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | (39,586 | ) | (41,091 | ) | 1,505 | 4 | % | Compensation and benefits | (53,004) | (49,124) | (3,880) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (10,519 | ) | (10,603 | ) | 84 | 1 | % | General, administrative and other expenses | (12,251) | (13,249) | 998 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 14,862 | $ | 16,157 | (1,295 | ) | (8 | )% | Fee Related Earnings | $ | 33,399 | $ | 25,482 | 7,917 | 31 |
Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 33,399 | $ | 25,482 | $ | 7,917 | 31% | ||||||||||||||||||||||||||||||||||||||||
Performance income-realized | 62,273 | 33,637 | 28,636 | 85 | |||||||||||||||||||||||||||||||||||||||||||
Performance related compensation-realized | (39,482) | (17,191) | (22,291) | (130) | |||||||||||||||||||||||||||||||||||||||||||
Realized net performance income | 22,791 | 16,446 | 6,345 | 39 | |||||||||||||||||||||||||||||||||||||||||||
Investment income-realized | 3,146 | 8,020 | (4,874) | (61) | |||||||||||||||||||||||||||||||||||||||||||
Interest and other investment income-realized | 4,056 | 5,633 | (1,577) | (28) | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (5,200) | (3,824) | (1,376) | (36) | |||||||||||||||||||||||||||||||||||||||||||
Realized net investment income | 2,002 | 9,829 | (7,827) | (80) | |||||||||||||||||||||||||||||||||||||||||||
Realized Income | $ | 58,192 | $ | 51,757 | 6,435 | 12 |
For the Years Ended December 31, | Favorable (Unfavorable) | ||||||||||||
2017 | 2016 | $ Change | % Change | ||||||||||
Fee Related Earnings | $ | 14,862 | $ | 16,157 | (1,295 | ) | (8 | )% | |||||
Performance income-realized | 9,608 | 11,401 | (1,793 | ) | (16 | )% | |||||||
Performance income compensation-realized | (4,338 | ) | (2,420 | ) | (1,918 | ) | (79 | )% | |||||
Realized net performance income | 5,270 | 8,981 | (3,711 | ) | (41 | )% | |||||||
Investment income-realized | 5,534 | 931 | 4,603 | NM | |||||||||
Interest and other investment income-realized | 511 | 1,598 | (1,087 | ) | (68 | )% | |||||||
Interest expense | (1,650 | ) | (1,056 | ) | (594 | ) | (56 | )% | |||||
Realized net investment income | 4,395 | 1,473 | 2,922 | 198 | % | ||||||||
Realized Income | $ | 24,527 | $ | 26,611 | (2,084 | ) | (8 | )% |
As of December 31, | |||||||
2018 | 2017 | ||||||
EPEP II | $ | 7,980 | $ | 4,622 | |||
US VIII | 50,847 | 32,940 | |||||
EF IV | 65,166 | 50,801 | |||||
Other real estate funds | 49,256 | 32,906 | |||||
Subtotal | 173,249 | 121,269 | |||||
Other fee generating funds(1) | 12,197 | 15,362 | |||||
Total Real Estate Group | $ | 185,446 | $ | 136,631 |
As of December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
($ in thousands) | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | |||||||||||||||||||||||||||||
Accrued Carried Interest | |||||||||||||||||||||||||||||||||||
US IX | $ | 26,704 | $ | 16,556 | $ | 10,148 | $ | 6,844 | $ | 4,243 | $ | 2,601 | |||||||||||||||||||||||
EF IV | 55,829 | 33,498 | 22,331 | 70,440 | 42,265 | 28,175 | |||||||||||||||||||||||||||||
Other real estate funds | 119,036 | 75,062 | 43,974 | 128,448 | 80,747 | 47,701 | |||||||||||||||||||||||||||||
Other fee generating funds(1) | 2,786 | — | 2,786 | 7,268 | — | 7,268 | |||||||||||||||||||||||||||||
Total accrued carried interest | 204,355 | 125,116 | 79,239 | 213,000 | 127,255 | 85,745 | |||||||||||||||||||||||||||||
Incentive fees | 525 | 315 | 210 | 378 | 227 | 151 | |||||||||||||||||||||||||||||
Total Real Estate Group | $ | 204,880 | $ | 125,431 | $ | 79,449 | $ | 213,378 | $ | 127,482 | $ | 85,896 |
As of December 31, 2019 | Activity during 2020 | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | Waterfall Type | Accrued Carried Interest | Change in Unrealized | Realized | Foreign Exchange and Other Adjustments | Accrued Carried Interest | |||||||||||||||||||||||||||||||||||
US IX | European | $ | 6,844 | $ | 19,860 | $ | — | $ | — | $ | 26,704 | ||||||||||||||||||||||||||||||
EF IV | American | 70,440 | (7,364) | (7,833) | 586 | 55,829 | |||||||||||||||||||||||||||||||||||
Other real estate funds | European | 87,657 | 16,179 | (17,244) | — | 86,592 | |||||||||||||||||||||||||||||||||||
Other real estate funds | American | 40,791 | 25,885 | (35,790) | 1,558 | 32,444 | |||||||||||||||||||||||||||||||||||
Other fee generating funds(1) | European | 1,786 | (630) | (552) | (178) | 426 | |||||||||||||||||||||||||||||||||||
Other fee generating funds(1) | American | 5,482 | (3,096) | (26) | — | 2,360 | |||||||||||||||||||||||||||||||||||
Total Real Estate Group | $ | 213,000 | $ | 50,834 | $ | (61,445) | $ | 1,966 | $ | 204,355 |
Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2016 | |||||||||||||||||||||||||||||||||
Realized | Unrealized | Net | Realized | Unrealized | Net | Realized | Unrealized | Net | |||||||||||||||||||||||||||
EPEP II | $ | 1,242 | $ | 3,586 | $ | 4,828 | $ | — | $ | 4,523 | $ | 4,523 | $ | — | $ | — | $ | — | |||||||||||||||||
US VIII | — | 17,907 | 17,907 | — | 20,366 | 20,366 | — | 9,482 | 9,482 | ||||||||||||||||||||||||||
EF IV | 24,301 | 14,334 | 38,635 | — | 46,750 | 46,750 | — | 4,052 | 4,052 | ||||||||||||||||||||||||||
Other real estate funds | 67,728 | 485 | 68,213 | 6,887 | 9,307 | 16,194 | 4,034 | 8,688 | 12,722 | ||||||||||||||||||||||||||
Subtotal | 93,271 | 36,312 | 129,583 | 6,887 | 80,946 | 87,833 | 4,034 | 22,222 | 26,256 | ||||||||||||||||||||||||||
Other fee generating funds(1) | 2,846 | (2,640 | ) | 206 | 2,721 | (786 | ) | 1,935 | 7,367 | (4,888 | ) | 2,479 | |||||||||||||||||||||||
Total Real Estate Group | $ | 96,117 | $ | 33,672 | $ | 129,789 | $ | 9,608 | $ | 80,160 | $ | 89,768 | $ | 11,401 | $ | 17,334 | $ | 28,735 |
($ in millions) | Real Estate Equity - U.S. | Real Estate Equity - Europe | Real Estate Debt | Total Real Estate Group | ||||||||||||||||||||||
Balance at 12/31/2019 | $ | 3,793 | $ | 4,588 | $ | 4,826 | $ | 13,207 | ||||||||||||||||||
Net new par/equity commitments | 854 | 699 | 710 | 2,263 | ||||||||||||||||||||||
Net new debt commitments | — | — | 437 | 437 | ||||||||||||||||||||||
Capital reductions | — | — | (372) | (372) | ||||||||||||||||||||||
Distributions | (314) | (820) | (78) | (1,212) | ||||||||||||||||||||||
Change in fund value | 71 | 344 | 70 | 485 | ||||||||||||||||||||||
Balance at 12/31/2020 | $ | 4,404 | $ | 4,811 | $ | 5,593 | $ | 14,808 | ||||||||||||||||||
Average AUM(1) | $ | 4,142 | $ | 4,639 | $ | 5,399 | $ | 14,180 | ||||||||||||||||||
Real Estate Equity - U.S. | Real Estate Equity - Europe | Real Estate Debt | Total Real Estate Group | |||||||||||||||||||||||
Balance at 12/31/2018 | $ | 4,163 | $ | 3,711 | $ | 3,466 | $ | 11,340 | ||||||||||||||||||
Net new par/equity commitments | 452 | 1,102 | 807 | 2,361 | ||||||||||||||||||||||
Net new debt commitments | — | — | 633 | 633 | ||||||||||||||||||||||
Capital reductions | — | — | (89) | (89) | ||||||||||||||||||||||
Distributions | (1,147) | (408) | (45) | (1,600) | ||||||||||||||||||||||
Change in fund value | 325 | 183 | 54 | 562 | ||||||||||||||||||||||
Balance at 12/31/2019 | $ | 3,793 | $ | 4,588 | $ | 4,826 | $ | 13,207 | ||||||||||||||||||
Average AUM(1) | $ | 3,742 | $ | 4,175 | $ | 4,225 | $ | 12,142 | ||||||||||||||||||
(1) Represents a five-point average of quarter-end balances for each period. |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
Balance at 12/31/2017 | $ | 4,578 | $ | 2,704 | $ | 2,947 | $ | 10,229 | |||||||
Net new equity commitments | 813 | 1,456 | 578 | 2,847 | |||||||||||
Net new debt commitments | — | — | 75 | 75 | |||||||||||
Distributions | (1,608 | ) | (428 | ) | (173 | ) | (2,209 | ) | |||||||
Change in fund value | 380 | (21 | ) | 39 | 398 | ||||||||||
Balance at 12/31/2018 | $ | 4,163 | $ | 3,711 | $ | 3,466 | $ | 11,340 | |||||||
Average AUM(1) | $ | 4,342 | $ | 3,365 | $ | 3,086 | $ | 10,793 |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
Balance at 12/31/2016 | $ | 4,106 | $ | 3,100 | $ | 2,546 | $ | 9,752 | |||||||
Net new equity commitments | 800 | — | — | 800 | |||||||||||
Net new debt commitments | — | — | 509 | 509 | |||||||||||
Distributions | (659 | ) | (801 | ) | (139 | ) | (1,599 | ) | |||||||
Change in fund value | 331 | 405 | 31 | 767 | |||||||||||
Balance at 12/31/2017 | $ | 4,578 | $ | 2,704 | $ | 2,947 | $ | 10,229 | |||||||
Average AUM(1) | $ | 4,459 | $ | 2,956 | $ | 2,846 | $ | 10,261 |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
Balance at 12/31/2015 | $ | 4,617 | $ | 3,059 | $ | 2,592 | $ | 10,268 | |||||||
Net new equity commitments | 355 | 470 | 15 | 840 | |||||||||||
Net new debt commitments | — | — | 225 | 225 | |||||||||||
Distributions | (1,125 | ) | (357 | ) | (331 | ) | (1,813 | ) | |||||||
Change in fund value | 259 | (72 | ) | 45 | 232 | ||||||||||
Balance at 12/31/2016 | $ | 4,106 | $ | 3,100 | $ | 2,546 | $ | 9,752 | |||||||
Average AUM(1) | $ | 4,444 | $ | 3,143 | $ | 2,557 | $ | 10,144 |
AUM: $14.8 | AUM: $13.2 |
FPAUM | AUM not yet paying fees | Non-fee paying | General partner and affiliates |
($ in millions) | Real Estate Equity - U.S. | Real Estate Equity - Europe | Real Estate Debt | Total Real Estate Group | ||||||||||||||||||||||
FPAUM Balance at 12/31/2019 | $ | 2,635 | $ | 3,792 | $ | 1,536 | $ | 7,963 | ||||||||||||||||||
Commitments | 1,056 | 606 | 73 | 1,735 | ||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 118 | 184 | 920 | 1,222 | ||||||||||||||||||||||
Capital reductions | — | (18) | (33) | (51) | ||||||||||||||||||||||
Distributions | (112) | (331) | (77) | (520) | ||||||||||||||||||||||
Change in fund value | — | 241 | 86 | 327 | ||||||||||||||||||||||
Change in fee basis | (38) | (386) | — | (424) | ||||||||||||||||||||||
FPAUM Balance at 12/31/2020 | $ | 3,659 | $ | 4,088 | $ | 2,505 | $ | 10,252 | ||||||||||||||||||
Average FPAUM(1) | $ | 3,337 | $ | 3,961 | $ | 1,941 | $ | 9,239 | ||||||||||||||||||
Real Estate Equity - U.S. | Real Estate Equity - Europe | Real Estate Debt | Total Real Estate Group | |||||||||||||||||||||||
FPAUM Balance at 12/31/2018 | $ | 2,739 | $ | 3,269 | $ | 944 | $ | 6,952 | ||||||||||||||||||
Commitments | 290 | 790 | — | 1,080 | ||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 230 | 277 | 762 | 1,269 | ||||||||||||||||||||||
Capital reductions | (8) | (35) | (174) | (217) | ||||||||||||||||||||||
Distributions | (393) | (213) | (44) | (650) | ||||||||||||||||||||||
Change in fund value | (1) | (63) | 48 | (16) | ||||||||||||||||||||||
Change in fee basis | (222) | (233) | — | (455) | ||||||||||||||||||||||
FPAUM Balance at 12/31/2019 | $ | 2,635 | $ | 3,792 | $ | 1,536 | $ | 7,963 | ||||||||||||||||||
Average FPAUM(1) | $ | 2,593 | $ | 3,565 | $ | 1,195 | $ | 7,353 | ||||||||||||||||||
(1) Represents a five-point average of quarter-end balances for each period. |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
FPAUM Balance at 12/31/2017 | $ | 3,062 | $ | 2,064 | $ | 1,063 | $ | 6,189 | |||||||
Commitments | 350 | 1,230 | — | 1,580 | |||||||||||
Subscriptions/deployment/increase in leverage | 259 | 392 | 27 | 678 | |||||||||||
Redemptions/distributions/decrease in leverage | (797 | ) | (151 | ) | (186 | ) | (1,134 | ) | |||||||
Change in fund value | 4 | (64 | ) | 40 | (20 | ) | |||||||||
Change in fee basis | (139 | ) | (202 | ) | — | (341 | ) | ||||||||
FPAUM Balance at 12/31/2018 | $ | 2,739 | $ | 3,269 | $ | 944 | $ | 6,952 | |||||||
Average FPAUM(1) | $ | 2,915 | $ | 2,822 | $ | 1,001 | $ | 6,738 |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
FPAUM Balance at 12/31/2016 | $ | 2,891 | $ | 2,531 | $ | 1,118 | $ | 6,540 | |||||||
Commitments | 665 | — | — | 665 | |||||||||||
Subscriptions/deployment/increase in leverage | 441 | 138 | 3 | 582 | |||||||||||
Redemptions/distributions/decrease in leverage | (510 | ) | (236 | ) | (95 | ) | (841 | ) | |||||||
Change in fund value | — | 146 | 37 | 183 | |||||||||||
Change in fee basis | (425 | ) | (515 | ) | — | (940 | ) | ||||||||
FPAUM Balance at 12/31/2017 | $ | 3,062 | $ | 2,064 | $ | 1,063 | $ | 6,189 | |||||||
Average FPAUM(1) | $ | 3,017 | $ | 2,429 | $ | 1,101 | $ | 6,547 |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
FPAUM Balance at 12/31/2015 | $ | 3,205 | $ | 2,554 | $ | 998 | $ | 6,757 | |||||||
Commitments | 97 | 365 | — | 462 | |||||||||||
Subscriptions/deployment/increase in leverage | 397 | 63 | 170 | 630 | |||||||||||
Redemptions/distributions/decrease in leverage | (842 | ) | (87 | ) | (90 | ) | (1,019 | ) | |||||||
Change in fund value | 34 | (132 | ) | 40 | (58 | ) | |||||||||
Change in fee basis | — | (232 | ) | — | (232 | ) | |||||||||
FPAUM Balance at 12/31/2016 | $ | 2,891 | $ | 2,531 | $ | 1,118 | $ | 6,540 | |||||||
Average FPAUM(1) | $ | 3,011 | $ | 2,581 | $ | 1,077 | $ | 6,669 |
Capital commitments | Invested capital/other(1) | Market value(2) |
($ in millions) | Year of Inception | AUM | Original Capital Commitments | Capital Invested to Date | Realized Value(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | Primary Investment Strategy | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Deploying Capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EF V(7) | 2018 | $ | 2,120 | $ | 1,968 | $ | 986 | $ | 52 | $ | 1,052 | $ | 1,104 | 1.1x | 1.0x | 12.1 | 0.8 | European Real Estate Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Third U.S. opportunistic real estate equity fund | 2019 | 1,372 | 1,189 | 128 | — | 121 | 121 | 0.9x | 0.8x | NA | NA | U.S. Real Estate Equity |
Year of Inception | AUM | Original Capital Commitments | Cumulative Invested Capital | Realized Proceeds(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | |||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | Investment Strategy | ||||||||||||||||||||||||||||||
EF IV (7) | 2014 | $ | 1,036 | $ | 1,302 | $ | 1,122 | $ | 539 | $ | 1,036 | $ | 1,575 | 1.5x | 1.3x | 20.2 | 14.9 | E.U. Real Estate Equity | |||||||||||||||||
EPEP II (8) | 2015 | 683 | 747 | 387 | 140 | 356 | 496 | 1.3x | 1.2x | 19.2 | 16.5 | E.U. Real Estate Equity | |||||||||||||||||||||||
VEF IX | 2017 | 1,026 | 1,040 | 225 | 8 | 445 | 453 | 1.0x | 1.0x | NA | NA | U.S. Real Estate Equity | |||||||||||||||||||||||
EF V (9) | 2018 | 1,222 | 1,197 | 160 | — | 201 | 201 | 1.2x | NA | NA | NA | E.U. Real Estate Equity |
($ in millions) | Year of Inception | AUM | Original Capital Commitments | Capital Invested to Date | Realized Value(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | Primary Investment Strategy | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Deploying Capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SSG Fund IV | 2016 | $ | 1,325 | $ | 1,181 | $ | 1,287 | $ | 759 | $ | 670 | $ | 1,429 | 1.2x | 1.1x | 14.4 | 8.1 | Asian Special Situations | |||||||||||||||||||||||||||||||||||||||||||||||||||||
SSG Fund V | 2018 | 1,960 | 1,878 | 802 | 187 | 697 | 884 | 1.2x | 1.1x | N/A | N/A | Asian Special Situations |
Year ended December 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | $ | (155,979) | $ | (139,162) | $ | (16,817) | (12) | % | |||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (80,778) | (91,292) | 10,514 | 12 | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | (236,757) | $ | (230,454) | (6,303) | (3) |
For the Years Ended December 31, | Favorable (Unfavorable) | |||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||
Compensation and benefits | $ | (126,117 | ) | $ | (112,233 | ) | $ | (13,884 | ) | (12 | )% | |||
General, administrative and other expenses | (75,926 | ) | (74,825 | ) | (1,101 | ) | (1 | )% | ||||||
Fee Related Earnings | (202,043 | ) | (187,058 | ) | (14,985 | ) | (8 | )% |
Year ended December 31, | Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Favorable (Unfavorable) | Year ended December 31, | Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | (202,043 | ) | (187,058 | ) | (14,985 | ) | (8 | )% | Fee Related Earnings | $ | (236,757) | $ | (230,454) | $ | (6,303) | (3) | % | |||||||||||||||||||||||||||||||||||||||||||
Investment income-realized | 4,790 | 3,880 | 910 | 23 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and other investment income-realized | 2,184 | 1,142 | 1,042 | 91 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment loss-realized | Investment loss-realized | (5,698) | — | (5,698) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and other investment loss-realized | Interest and other investment loss-realized | (739) | (160) | (579) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (2,226 | ) | (1,946 | ) | (280 | ) | (14 | )% | Interest expense | (1,335) | (1,864) | 529 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||
Realized net investment income | 4,748 | 3,076 | 1,672 | 54 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized net investment loss | Realized net investment loss | (7,772) | (2,024) | (5,748) | (284) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized Income | $ | (197,295 | ) | $ | (183,982 | ) | (13,313 | ) | (7 | )% | Realized Income | $ | (244,529) | $ | (232,478) | (12,051) | (5) |
For the Years Ended December 31, | Favorable (Unfavorable) | |||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
Compensation and benefits | $ | (112,233 | ) | $ | (97,777 | ) | $ | (14,456 | ) | (15 | )% | |||
General, administrative and other expenses | (74,825 | ) | (60,319 | ) | (14,506 | ) | (24 | )% | ||||||
Fee Related Earnings | (187,058 | ) | (158,096 | ) | (28,962 | ) | (18 | )% |
For the Years Ended December 31, | Favorable (Unfavorable) | ||||||||||||
2017 | 2016 | $ Change | % Change | ||||||||||
Fee Related Earnings | (187,058 | ) | (158,096 | ) | (28,962 | ) | (18 | )% | |||||
Investment income (loss)-realized | 3,880 | (14,606 | ) | 18,486 | NM | ||||||||
Interest and other investment income-realized | 1,142 | 163 | 979 | NM | |||||||||
Interest expense | (1,946 | ) | (2,727 | ) | 781 | 29 | % | ||||||
Realized net investment income (loss) | 3,076 | (17,170 | ) | 20,246 | NM | ||||||||
Realized Income | $ | (183,982 | ) | $ | (175,266 | ) | (8,716 | ) | (5 | )% |
Accrued Carried Interest & Incentive Fee Receivable (1) | |||
Credit Group | $ | 210,655 | |
Private Equity Group | 506,872 | ||
Real Estate Group | 173,250 | ||
Total | $ | 890,777 |
Year ended December 31, | |||||||||||
($ in thousands) | 2020 | 2019 | |||||||||
Net cash provided by operating activities | $ | 281,204 | $ | 305,741 | |||||||
Net cash used in the Consolidated Funds' operating activities, net of eliminations | (706,863) | (2,388,762) | |||||||||
Net cash used in operating activities | (425,659) | (2,083,021) | |||||||||
Net cash used in the Company's investing activities | (136,764) | (16,796) | |||||||||
Net cash provided by (used in) the Company's financing activities | 239,736 | (260,366) | |||||||||
Net cash provided by the Consolidated Funds' financing activities, net of eliminations | 704,159 | 2,382,696 | |||||||||
Net cash provided by financing activities | 943,895 | 2,122,330 | |||||||||
Effect of exchange rate changes | 19,956 | 5,624 | |||||||||
Net change in cash and cash equivalents | $ | 401,428 | $ | 28,137 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net cash used in operating activities | $ | (1,417 | ) | $ | (1,863 | ) | $ | (626 | ) | ||
Net cash used in investing activities | (18 | ) | (33 | ) | (12 | ) | |||||
Net cash provided by financing activities | 1,405 | 1,655 | 881 | ||||||||
Effect of foreign exchange rate change | 22 | 17 | (22 | ) | |||||||
Net change in cash and cash equivalents | $ | (8 | ) | $ | (224 | ) | $ | 221 |
Year ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | $ | (15,942) | $ | (16,796) | |||||||
Acquisitions, net of cash acquired | (120,822) | — | |||||||||
Net cash used in investing activities | $ | (136,764) | $ | (16,796) |
Year ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Net proceeds from issuance of Class A common stock | $ | 383,154 | $ | 206,705 | |||||||
Net repayments of credit facility | (70,000) | (165,000) | |||||||||
Proceeds from senior notes | 399,084 | — | |||||||||
Class A common stock dividends | (231,446) | (148,666) | |||||||||
AOG unitholder distributions | (215,334) | (175,001) | |||||||||
Series A Preferred Stock dividends | (21,700) | (21,700) | |||||||||
Repurchases of Class A common stock | — | (10,449) | |||||||||
Stock option exercises | 92,877 | 90,511 | |||||||||
Taxes paid related to net share settlement of equity awards | (95,368) | (33,554) | |||||||||
Other financing activities | (1,531) | (3,212) | |||||||||
Net cash provided by (used in) the Company's financing activities | $ | 239,736 | $ | (260,366) |
Year ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Contributions from non-controlling interests in Consolidated Funds, net of eliminations | $ | 132,430 | $ | 172,851 | |||||||
Distributions to non-controlling interests in Consolidated Funds, net of eliminations | (251,507) | (96,282) | |||||||||
Borrowings under loan obligations by Consolidated Funds | 1,013,291 | 3,341,837 | |||||||||
Repayments under loan obligations by Consolidated Funds | (190,055) | (1,035,710) | |||||||||
Net cash provided by the Consolidated Funds' financing activities | $ | 704,159 | $ | 2,382,696 |
As of December 31, 2018 | As of December 31, 2017 | |||||||||||||||||||
Debt Origination Date | Maturity | Original Borrowing Amount | Carrying Value | Interest Rate | Carrying Value | Interest Rate | ||||||||||||||
Credit Facility(1) | Revolver | 2/24/2022 | N/A | $ | 235,000 | 4.00 | % | $ | 210,000 | 3.09 | % | |||||||||
Senior Notes(2) | 10/8/2014 | 10/8/2024 | $ | 250,000 | 245,952 | 4.21 | % | 245,308 | 4.21 | % | ||||||||||
2015 Term Loan(3) | 9/2/2015 | 7/29/2026 | $ | — | — | N/A | 35,037 | 2.86 | % | |||||||||||
2016 Term Loan(4) | 12/21/2016 | 1/15/2029 | $ | — | — | N/A | 25,948 | 3.08 | % | |||||||||||
2017 Term Loan A(4) | 3/22/2017 | 1/22/2028 | $ | — | — | N/A | 17,407 | 2.90 | % | |||||||||||
2017 Term Loan B(4) | 5/10/2017 | 10/15/2029 | $ | — | — | N/A | 35,062 | 2.90 | % | |||||||||||
2017 Term Loan C(4) | 6/22/2017 | 7/30/2029 | $ | — | — | N/A | 17,078 | 2.88 | % | |||||||||||
2017 Term Loan D(4) | 11/16/2017 | 10/15/2030 | $ | — | — | N/A | 30,336 | 2.77 | % | |||||||||||
Total debt obligations | $ | 480,952 | $ | 616,176 |
Closing price of the Company's common shares as of valuation date | $ | 20.95 | ||
Risk-free interest rate | 2.95 | % | ||
Volatility | 30.0 | % | ||
Dividend yield | 5.0 | % | ||
Cost of equity | 10.0 | % |
Closing price of the Company's common shares as of valuation date | $20.95 | |||||||
Risk-free interest rate | 2.95% | |||||||
Volatility | 30.0% | |||||||
Dividend yield | 5.0% | |||||||
Cost of equity | 10.0% |
Less than 1 year | 1 - 3 years | 4 - 5 years | Thereafter | Total | ||||||||||||||||||||||||||||
The Company: | ||||||||||||||||||||||||||||||||
Operating lease obligations(1) | $ | 35,571 | $ | 73,733 | $ | 63,402 | $ | 38,712 | $ | 211,418 | ||||||||||||||||||||||
Debt obligations payable(2) | — | — | 247,285 | 395,713 | 642,998 | |||||||||||||||||||||||||||
Capital lease obligations | 519 | 644 | 163 | — | 1,326 | |||||||||||||||||||||||||||
Interest obligations on debt(3) | 27,603 | 55,206 | 41,726 | 58,500 | 183,035 | |||||||||||||||||||||||||||
Capital commitments(4) | 784,221 | — | — | — | 784,221 | |||||||||||||||||||||||||||
Subtotal | 847,914 | 129,583 | 352,576 | 492,925 | 1,822,998 | |||||||||||||||||||||||||||
Consolidated Funds: | ||||||||||||||||||||||||||||||||
Debt obligations payable | 104,000 | 17,909 | — | 10,427,759 | 10,549,668 | |||||||||||||||||||||||||||
Interest obligations on debt(3) | 188,510 | 374,568 | 374,767 | 958,844 | 1,896,689 | |||||||||||||||||||||||||||
Capital commitments of Consolidated Funds(4) | 15,599 | — | — | — | 15,599 | |||||||||||||||||||||||||||
Total | $ | 1,156,023 | $ | 522,060 | $ | 727,343 | $ | 11,879,528 | $ | 14,284,954 |
Less than 1 year | 1 - 3 years | 4 - 5 years | Thereafter | Total | ||||||||||||||||
The Company: | ||||||||||||||||||||
Operating lease obligations(1) | $ | 32,039 | $ | 47,564 | $ | 42,792 | $ | 45,141 | $ | 167,536 | ||||||||||
Debt obligations payable(2) | — | — | — | 245,952 | 245,952 | |||||||||||||||
Capital lease obligations | 364 | 766 | 403 | 1,533 | ||||||||||||||||
Interest obligations on debt(3) | 15,694 | 31,389 | 20,949 | 10,000 | 78,032 | |||||||||||||||
Interest obligations on capital lease obligations | 52 | 67 | 14 | 133 | ||||||||||||||||
Credit Facility(4) | — | — | 235,000 | — | 235,000 | |||||||||||||||
Capital commitments(5) | 267,568 | — | — | — | 267,568 | |||||||||||||||
Subtotal | 315,717 | 79,786 | 299,158 | 301,093 | 995,754 | |||||||||||||||
Consolidated Funds: | ||||||||||||||||||||
Debt obligations payable | 115,125 | 38,844 | 16,316 | 7,040,080 | 7,210,365 | |||||||||||||||
Interest obligations on debt(3) | 223,883 | 446,205 | 442,994 | 1,253,992 | 2,367,074 | |||||||||||||||
Capital commitments of Consolidated Funds(6) | 23,240 | — | — | — | 23,240 | |||||||||||||||
Total | $ | 677,965 | $ | 564,835 | $ | 758,468 | $ | 8,595,165 | $ | 10,596,433 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Income before taxes | $ | 184,341 | $ | 149,859 | $ | 297,920 | |||||
Adjustments: | |||||||||||
Amortization of intangibles | 9,032 | 17,850 | 26,638 | ||||||||
Depreciation expense | 16,055 | 12,631 | 8,215 | ||||||||
Equity compensation expenses | 89,724 | 69,711 | 39,065 | ||||||||
Acquisition and merger-related expenses | 2,936 | 259,899 | (16,902 | ) | |||||||
Placement fees and underwriting costs | 20,343 | 19,765 | 6,424 | ||||||||
Other (income) expense | 13,489 | (1,042 | ) | (1,728 | ) | ||||||
Expense of non-controlling interests in consolidated subsidiaries | 3,343 | 1,739 | — | ||||||||
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (20,643 | ) | (62,705 | ) | (2,649 | ) | |||||
Total consolidation adjustments and reconciling items | 134,279 | 317,848 | 59,063 | ||||||||
Economic Net Income | 318,620 | 467,707 | 356,983 | ||||||||
Total performance (income) loss - unrealized | 247,212 | (325,915 | ) | (228,472 | ) | ||||||
Total performance related compensation - unrealized | (221,343 | ) | 237,392 | 189,582 | |||||||
Total net investment (income) loss - unrealized | 50,907 | (53,744 | ) | (17,765 | ) | ||||||
Realized Income | $ | 395,396 | $ | 325,440 | $ | 300,328 |
Report of Independent Registered Public Accounting Firm | ||
Consolidated Statements of Financial Condition as of December 31, | ||
Consolidated Statements of Operations for the years ended December 31, | ||
Consolidated Statements of Comprehensive Income for the years ended December 31, | ||
Consolidated Statements of Changes in Equity for the years ended December 31, | ||
Consolidated Statements of Cash Flows for the years ended December 31, | ||
Notes to Consolidated Financial Statements |
Exhibit No. | Description | |||||||
Certificate of Incorporation of Ares Management Corporation (incorporated by reference to Exhibit 99.3 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018). | ||||||||
Bylaws of Ares Management Corporation (incorporated by reference to Exhibit 99.4 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018). | ||||||||
Description of Ares Management Corporation's Securities. | ||||||||
Indenture dated as of October 8, 2014 among Ares Finance Co. LLC, Ares Management, L.P., Ares Holdings Inc., Ares Domestic Holdings Inc., Ares Real Estate Holdings LLC, Ares Holdings L.P., Ares Domestic Holdings L.P., Ares Investments L.P., Ares Real Estate Holdings L.P., Ares Management LLC, Ares Investments Holdings LLC and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form | ||||||||
First Supplemental Indenture dated as of October 8, 2014 among Ares Finance Co. LLC, Ares Management, L.P., Ares Holdings Inc., Ares Domestic Holdings Inc., Ares Real Estate Holdings LLC, Ares Holdings L.P., Ares Domestic Holdings L.P., Ares Investments L.P., Ares Real Estate Holdings L.P., Ares Management LLC, Ares Investments Holdings LLC and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form | ||||||||
First Amendment, dated as of August 7, 2015, to the First Supplemental Indenture, dated October 8, 2014, to the indenture, dated October 8, 2014, among Ares Finance Co. LLC, the guarantors party thereto and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on August 7, 2015). | ||||||||
Form of 4.000% Senior Note due 2024 (incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form | ||||||||
Form of 7.00% Series A Preferred Stock Certificate (incorporated by reference to Exhibit 99.5 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018). | ||||||||
Indenture dated as of June 15, 2020 among Ares Finance Co. II LLC, Ares Holdings L.P., Ares Investments L.P., Ares Management LLC, Ares Investments Holdings LLC, Ares Finance Co. LLC and Ares Offshore Holdings L.P. and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on June 15, 2020). | ||||||||
First Supplemental Indenture dated as of June 15, 2020 among Ares Finance Co. II LLC, Ares Holdings L.P., Ares Investments L.P., Ares Management LLC, Ares Investments Holdings LLC, Ares Finance Co. LLC and Ares Offshore Holdings L.P. and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on June 15, 2020). | ||||||||
Form of 3.250% Senior Note due 2030 (incorporated by reference to Exhibit 4.3 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on June 15, 2020). |
Exhibit No. | Description | |||||||
Third Amended and Restated Limited Partnership Agreement of Ares Holdings L.P., dated November 26, 2018. | ||||||||
Fourth Amended and Restated Limited Partnership Agreement of Ares Offshore Holdings L.P. dated November 26, 2018. | ||||||||
Third Amended and Restated Limited Partnership Agreement of Ares Investments L.P. dated November 26, 2018. | ||||||||
Investor Rights Agreement. | ||||||||
Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Fourth Amended and Restated Exchange Agreement, dated as of November 26, 2018. |
Second Amended and Restated Tax Receivable Agreement. | ||||||||
Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.10 to the Registrant’s Registration Statement on Form | ||||||||
Amendment No. 1, dated as of July 15, 2014, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10‑Q (File No. | ||||||||
Amendment No. 2, dated as of September 24, 2014, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10‑Q (File No. | ||||||||
Amendment No. 3, dated as of July 23, 2015, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8‑K (File No. | ||||||||
Amendment No. 4, dated as of August 5, 2015, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8‑K (File No. | ||||||||
Amendment No. 5, dated as of December 16, 2015, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8‑K (File No. | ||||||||
Amendment No. 6, dated as of May 23, 2016, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on May 26, 2016). | ||||||||
Amendment No. 7, dated as of February 24, 2017, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., Ares Investments L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.15 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 001-36429, filed with the SEC on February 27, 2017). | ||||||||
Amendment No. 8, dated as of March 21, 2019, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., Ares Investments L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on March 26, 2019). |
Exhibit No. | Description | |||||||
Amendment No. 9, dated as of March 30, 2020, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., Ares Investments L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on April 1, 2020). | ||||||||
Restated Investment Advisory and Management Agreement between Ares Capital Corporation and Ares Capital Management LLC, dated as of June 6, 2011 (incorporated by reference to Exhibit 10.11 to the Registrant’s Registration Statement on Form | ||||||||
Second Amended and Restated Investment Advisory and Management Agreement, dated June 6, 2019, between Ares Capital Corporation and Ares Capital Management LLC (incorporated by reference to exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-36429) filed with the SEC on November 6, 2019). | ||||||||
Form of Indemnification Agreement. # | ||||||||
Form of Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Form of Option Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Form of Phantom Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Form of ARCC Incentive Fee Award (incorporated by reference to Exhibit 10.16 to the Registrant’s Registration Statement on Form S‑1/A (File No. | ||||||||
Form of Amended and Restated Limited Partnership Agreement of Carry Vehicles (incorporated by reference to Exhibit 10.28 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 (File No. 001-36429, filed with the SEC on February 29, 2016). | ||||||||
Form of Supplemental Award Agreement for Carried Interest (incorporated by reference to Exhibit 10.29 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 (File No. 001-36429, filed with the SEC on February 29, 2016). |
Form of Annual Incentive Fee Award Letter (incorporated by reference to Exhibit 10.24 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 001-36429, filed with the SEC on February 27, 2017). | ||||||||
Form of Deferred Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Offer Letter for Michael R. McFerran, dated March 10, 2015 (incorporated by reference to Exhibit 10.26 to the Registrant’s Annual Report on Form 10-K (File No. 001-36429) filed with the SEC on March 20, 2015). # | ||||||||
Form of Director Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.4 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Restricted Unit Agreement, dated as of July 31, 2018, by and between Michael J Arougheti and Ares Management, L.P. (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 001-36429) filed with the SEC on August 6, 2018). # | ||||||||
Stock Purchase Agreement, dated July 9, 2019, between Aspida Holdco, LLC and GBIG Holdings, Inc. (incorporated by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K (File 001-36429) filed with the SEC on July 9, 2019). | ||||||||
Share Purchase Agreement, dated March 27, 2020, between Sumitomo Mitsui Banking Corporation and Ares Management Corporation (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File 001-36429) filed with the SEC on March 30, 2020). | ||||||||
Investor Rights Agreement, dated March 31, 2020, by and between Sumitomo Mitsui Banking Corporation and Ares Management Corporation. | ||||||||
Form of Executive Officer Time-Based Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Form of Executive Officer Performance-Based Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Subsidiaries of Ares Management Corporation. | ||||||||
Consent of Ernst and Young LLP. |
Exhibit No. | Description | |||||||
Certification of the Chief Executive Officer pursuant to Rule | ||||||||
Certification of the Chief Financial Officer pursuant to Rule | ||||||||
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350. | ||||||||
101.INS* | Inline XBRL Instance Document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104* | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
ARES MANAGEMENT CORPORATION | |||||||||||
Dated: February | By: | /s/ Michael J Arougheti | |||||||||
Name: | Michael J Arougheti | ||||||||||
Co-Founder, Chief Executive Officer & President (Principal Executive Officer) |
By: | /s/ Antony P. Ressler | ||||||||||||||
Name: | Antony P. Ressler | Dated: February 25, 2021 | |||||||||||||
Title: | Executive Chairman & Co-Founder | ||||||||||||||
By: | /s/ Michael J Arougheti | ||||||||||||||
Name: | Michael J Arougheti | Dated: February 25, 2021 | |||||||||||||
Title: | Director, Co-Founder, Chief Executive Officer & President (Principal Executive Officer) | ||||||||||||||
By: | /s/ Michael R. McFerran | ||||||||||||||
Name: | Michael R. McFerran | Dated: February 25, 2021 | |||||||||||||
Title: | Chief Operating Officer & Chief Financial Officer (Principal Financial and Accounting Officer) | ||||||||||||||
By: | /s/ David B. Kaplan | ||||||||||||||
Name: | David B. Kaplan | Dated: February 25, 2021 | |||||||||||||
Title: | Director, Co-Founder & Co-Chairman of Private Equity Group | ||||||||||||||
By: | /s/ Bennett Rosenthal | ||||||||||||||
Name: | Bennett Rosenthal | Dated: February 25, 2021 | |||||||||||||
Title: | Director, Co-Founder & Co-Chairman of Private Equity Group | ||||||||||||||
By: | /s/ | ||||||||||||||
Name: | Dated: February | ||||||||||||||
Title: | |||||||||||||||
By: | |||||||||||||||
/s/ Paul G. Joubert | |||||||||||||||
Name: | Paul G. Joubert | Dated: February | |||||||||||||
Title: | Director | ||||||||||||||
By: | /s/ Michael Lynton | ||||||||||||||
Name: | Michael Lynton | Dated: February | |||||||||||||
Title: | Director | ||||||||||||||
By: | /s/ Judy D. Olian | ||||||||||||||
Name: | Dr. Judy D. Olian | Dated: February | |||||||||||||
Title: | Director | ||||||||||||||
By: | /s/ Antoinette Bush | ||||||||||||||
Name: | Antoinette Bush | Dated: February | |||||||||||||
Title: | Director |
Description of the Matter | At December 31, 2020, the carrying value of the Company’s investments totaled $1,683 million, primarily consisting of equity method private investment partnership interests - principal of $366 million and equity method - carried interest of $1,146 million. As discussed further in Note 2. Summary of Significant Accounting Policies to the consolidated financial statements, the underlying investments of the Company’s equity method investments (“underlying investments”) are reported at fair value as determined by management by applying the valuation techniques and using the significant unobservable inputs described therein. Auditing management’s determination of the fair value of the underlying investments that are valued using significant unobservable inputs is complex and involves a high degree of auditor subjectivity to address the higher estimation uncertainty. | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s investment valuation process for the underlying investments. This included management’s review controls over the assessment of the valuation techniques and significant unobservable inputs used to estimate the fair value of the underlying investments and management’s review of the completeness and accuracy of the data used in these estimates. Our audit procedures included, among others, evaluating, on a sample basis, the valuation techniques and significant unobservable inputs used by the Company in valuing the underlying investments and testing, on a sample basis, the mathematical accuracy of the related valuation models. For example, for a sample of underlying investments that were valued using the market approach, we performed procedures to evaluate the appropriateness of significant unobservable inputs such as the selected earnings before interest, taxes, depreciation and amortization multiples or revenue multiples that were derived from comparable companies. These procedures included assessing the appropriateness of management’s determination of the comparable companies, and, where applicable, comparing the selected multiples to market observed transactions of such companies. For a sample of underlying investments that were valued using the discounted cash flow valuation technique, we performed procedures to evaluate the appropriateness of significant unobservable inputs such as the selected discount rates and projections of future cash flows. These procedures included comparing the selected discount rates to market data and/or recalculating these discount rates using investee specific information, such as the cost of equity. In addition, these procedures included comparing future projections to the current performance and the historical growth rates of the investees as well as to the growth rates of publicly traded comparable companies. In some instances, with the involvement of our valuation specialists, we independently developed fair value estimates using investee specific and market information and compared our estimates to the fair value of the underlying investments. We searched for and evaluated information that corroborated or contradicted the significant unobservable inputs. We also evaluated subsequent events and transactions and considered whether they corroborated or contradicted the year-end valuations. |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 539,812 | $ | 138,384 | |||||||
Investments (includes accrued carried interest of $1,145,853 and $1,134,967 at December 31, 2020 and 2019, respectively) | 1,682,759 | 1,663,664 | |||||||||
Due from affiliates | 405,887 | 267,130 | |||||||||
Other assets | 812,419 | 342,262 | |||||||||
Right-of-use operating lease assets | 154,742 | 143,406 | |||||||||
Assets of Consolidated Funds: | |||||||||||
Cash and cash equivalents | 522,377 | 606,321 | |||||||||
Investments, at fair value | 10,877,097 | 8,727,947 | |||||||||
Due from affiliates | 17,172 | 6,192 | |||||||||
Receivable for securities sold | 121,225 | 88,809 | |||||||||
Other assets | 35,502 | 30,081 | |||||||||
Total assets | $ | 15,168,992 | $ | 12,014,196 | |||||||
Liabilities | |||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 115,289 | $ | 88,173 | |||||||
Accrued compensation | 103,010 | 37,795 | |||||||||
Due to affiliates | 100,186 | 71,445 | |||||||||
Performance related compensation payable | 813,378 | 829,764 | |||||||||
Debt obligations | 642,998 | 316,609 | |||||||||
Operating lease liabilities | 180,236 | 168,817 | |||||||||
Liabilities of Consolidated Funds: | |||||||||||
Accounts payable, accrued expenses and other liabilities | 46,824 | 61,857 | |||||||||
Payable for securities purchased | 514,946 | 500,146 | |||||||||
CLO loan obligations, at fair value | 9,958,076 | 7,973,748 | |||||||||
Fund borrowings | 121,909 | 107,244 | |||||||||
Total liabilities | 12,596,852 | 10,155,598 | |||||||||
Commitments and contingencies | 0 | 0 | |||||||||
Redeemable interest in Ares Operating Group entities | 100,366 | 0 | |||||||||
Non-controlling interests in Consolidated Funds | 539,720 | 618,020 | |||||||||
Non-controlling interests in Ares Operating Group entities | 738,369 | 472,288 | |||||||||
Stockholders' Equity | |||||||||||
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (12,400,000 shares issued and outstanding at December 31, 2020 and 2019, respectively) | 298,761 | 298,761 | |||||||||
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (147,182,562 shares and 115,242,028 shares issued and outstanding at December 31, 2020 and 2019, respectively) | 1,472 | 1,152 | |||||||||
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding at December 31, 2020 and 2019) | 0 | 0 | |||||||||
Class C common stock, $0.01 par value, 499,999,000 shares authorized (112,447,618 shares and 1 share issued and outstanding at December 31, 2020 and 2019, respectively) | 1,124 | 0 | |||||||||
Additional paid-in-capital | 1,043,669 | 525,244 | |||||||||
Retained earnings | (151,824) | (50,820) | |||||||||
Accumulated other comprehensive income (loss), net of tax | 483 | (6,047) | |||||||||
Total stockholders' equity | 1,193,685 | 768,290 | |||||||||
Total equity | 2,471,774 | 1,858,598 | |||||||||
Total liabilities, redeemable interest, non-controlling interests and equity | $ | 15,168,992 | $ | 12,014,196 |
As of December 31, | |||||||
2018 | 2017 | ||||||
Assets | As Adjusted | ||||||
Cash and cash equivalents | $ | 110,247 | $ | 118,929 | |||
Investments (includes accrued carried interest of $841,079 and $1,077,236, at December 31, 2018 and December 31, 2017, respectively) | 1,326,137 | 1,724,571 | |||||
Due from affiliates | 199,377 | 165,750 | |||||
Deferred tax asset, net | 42,137 | 8,326 | |||||
Other assets | 160,150 | 130,341 | |||||
Intangible assets, net | 31,578 | 40,465 | |||||
Goodwill | 143,786 | 143,895 | |||||
Assets of Consolidated Funds: | |||||||
Cash and cash equivalents | 384,644 | 556,500 | |||||
Investments, at fair value | 7,673,165 | 5,582,842 | |||||
Due from affiliates | 17,609 | 15,884 | |||||
Dividends and interest receivable | 19,330 | 12,568 | |||||
Receivable for securities sold | 42,076 | 61,462 | |||||
Other assets | 4,456 | 1,989 | |||||
Total assets | $ | 10,154,692 | $ | 8,563,522 | |||
Liabilities | |||||||
Accounts payable, accrued expenses and other liabilities | $ | 83,221 | $ | 81,955 | |||
Accrued compensation | 29,389 | 27,978 | |||||
Due to affiliates | 82,411 | 39,184 | |||||
Performance related compensation payable | 641,737 | 822,084 | |||||
Debt obligations | 480,952 | 616,176 | |||||
Liabilities of Consolidated Funds: | |||||||
Accounts payable, accrued expenses and other liabilities | 83,876 | 64,316 | |||||
Due to affiliates | — | — | |||||
Payable for securities purchased | 471,390 | 350,145 | |||||
CLO loan obligations, at fair value | 6,678,091 | 4,963,194 | |||||
Fund borrowings | 209,284 | 138,198 | |||||
Total liabilities | 8,760,351 | 7,103,230 | |||||
Commitments and contingencies | |||||||
Non-controlling interest in Consolidated Funds | 503,637 | 528,488 | |||||
Non-controlling interest in Ares Operating Group entities | 302,780 | 358,186 | |||||
Stockholders' Equity | |||||||
Preferred equity (12,400,000 preferred units issued and outstanding at December 31, 2017) | — | 298,761 | |||||
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (12,400,000 units issued and outstanding at December 31, 2018) | 298,761 | — | |||||
Shareholders' equity (82,280,033 common units issued and outstanding at December 31, 2017) | — | 279,065 | |||||
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (101,594,095 shares issued and outstanding at December 31, 2018) | 1,016 | — | |||||
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding at December 31, 2018) | — | — | |||||
Class C common stock, $0.01 par value, 499,999,000 shares authorized (1 shares issued and outstanding at December 31, 2018) | — | — | |||||
Additional paid-in-capital | 326,007 | — | |||||
Retained earnings | (29,336 | ) | — | ||||
Accumulated other comprehensive benefit, net of tax | (8,524 | ) | (4,208 | ) | |||
Total stockholders' equity | 587,924 | 573,618 | |||||
Total equity | 1,394,341 | 1,460,292 | |||||
Total liabilities, non-controlling interests and equity | $ | 10,154,692 | $ | 8,563,522 |
Year ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $184,141, $164,396 and $128,805 for the years ended December 31, 2020, 2019 and 2018, respectively) | $ | 1,150,608 | $ | 979,417 | $ | 802,502 | |||||||||||||||||||||||
Carried interest allocation | 505,608 | 621,872 | 42,410 | ||||||||||||||||||||||||||
Incentive fees | 37,902 | 69,197 | 63,380 | ||||||||||||||||||||||||||
Principal investment income (loss) | 28,552 | 56,555 | (1,455) | ||||||||||||||||||||||||||
Administrative, transaction and other fees | 41,376 | 38,397 | 51,624 | ||||||||||||||||||||||||||
Total revenues | 1,764,046 | 1,765,438 | 958,461 | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Compensation and benefits | 767,252 | 653,352 | 570,380 | ||||||||||||||||||||||||||
Performance related compensation | 404,116 | 497,181 | 30,254 | ||||||||||||||||||||||||||
General, administrative and other expenses | 258,999 | 270,219 | 215,964 | ||||||||||||||||||||||||||
Expenses of Consolidated Funds | 20,119 | 42,045 | 53,764 | ||||||||||||||||||||||||||
Total expenses | 1,450,486 | 1,462,797 | 870,362 | ||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (9,008) | 9,554 | (1,884) | ||||||||||||||||||||||||||
Interest and dividend income | 8,071 | 7,506 | 7,028 | ||||||||||||||||||||||||||
Interest expense | (24,908) | (19,671) | (21,448) | ||||||||||||||||||||||||||
Other income (expense), net | 11,291 | (7,840) | (851) | ||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | (96,864) | 15,136 | (1,583) | ||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 463,652 | 395,599 | 337,875 | ||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (286,316) | (277,745) | (222,895) | ||||||||||||||||||||||||||
Total other income | 65,918 | 122,539 | 96,242 | ||||||||||||||||||||||||||
Income before taxes | 379,478 | 425,180 | 184,341 | ||||||||||||||||||||||||||
Income tax expense | 54,993 | 52,376 | 32,202 | ||||||||||||||||||||||||||
Net income | 324,485 | 372,804 | 152,139 | ||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 28,085 | 39,704 | 20,512 | ||||||||||||||||||||||||||
Net income attributable to Ares Operating Group entities | 296,400 | 333,100 | 131,627 | ||||||||||||||||||||||||||
Less: Net loss attributable to redeemable interest in Ares Operating Group entities | (976) | 0 | 0 | ||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 145,234 | 184,216 | 74,607 | ||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation | 152,142 | 148,884 | 57,020 | ||||||||||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | 21,700 | 21,700 | ||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 130,442 | $ | 127,184 | $ | 35,320 | |||||||||||||||||||||||
Net income per share of Class A common stock: | |||||||||||||||||||||||||||||
Basic | $ | 0.89 | $ | 1.11 | $ | 0.30 | |||||||||||||||||||||||
Diluted | $ | 0.87 | $ | 1.06 | $ | 0.30 | |||||||||||||||||||||||
Weighted-average shares of Class A common stock: | |||||||||||||||||||||||||||||
Basic | 135,065,436 | 107,914,953 | 96,023,147 | ||||||||||||||||||||||||||
Diluted | 149,508,498 | 119,877,429 | 96,023,147 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Revenues | As Adjusted | As Adjusted | |||||||||
Management fees (includes ARCC Part I Fees of $128,805, $105,467 and $121,181 for the years ended December 31, 2018, 2017 and 2016, respectively) | $ | 802,502 | $ | 722,419 | $ | 642,068 | |||||
Carried interest allocation | 42,410 | 620,454 | 494,580 | ||||||||
Incentive fees | 63,380 | 16,220 | 23,272 | ||||||||
Principal investment income (loss) | (1,455 | ) | 64,444 | 55,168 | |||||||
Administrative, transaction and other fees | 51,624 | 56,406 | 39,285 | ||||||||
Total revenues | 958,461 | 1,479,943 | 1,254,373 | ||||||||
Expenses | |||||||||||
Compensation and benefits | 570,380 | 514,109 | 447,725 | ||||||||
Performance related compensation | 30,254 | 479,722 | 387,846 | ||||||||
General, administrative and other expenses | 215,964 | 196,730 | 159,776 | ||||||||
Transaction support expense | — | 275,177 | — | ||||||||
Expenses of Consolidated Funds | 53,764 | 39,020 | 21,073 | ||||||||
Total expenses | 870,362 | 1,504,758 | 1,016,420 | ||||||||
Other income (expense) | |||||||||||
Net realized and unrealized gain (loss) on investments | (1,884 | ) | 8,262 | (7,629 | ) | ||||||
Interest and dividend income | 7,028 | 7,043 | 4,493 | ||||||||
Interest expense | (21,448 | ) | (21,219 | ) | (17,981 | ) | |||||
Other income (expense), net | (851 | ) | 19,470 | 35,650 | |||||||
Net realized and unrealized gain (loss) on investments of Consolidated Funds | (1,583 | ) | 100,124 | (2,057 | ) | ||||||
Interest and other income of Consolidated Funds | 337,875 | 187,721 | 138,943 | ||||||||
Interest expense of Consolidated Funds | (222,895 | ) | (126,727 | ) | (91,452 | ) | |||||
Total other income | 96,242 | 174,674 | 59,967 | ||||||||
Income before taxes | 184,341 | 149,859 | 297,920 | ||||||||
Income tax expense (benefit) | 32,202 | (23,052 | ) | 11,019 | |||||||
Net income | 152,139 | 172,911 | 286,901 | ||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 20,512 | 60,818 | 3,386 | ||||||||
Less: Net income attributable to redeemable interests in Ares Operating Group entities | — | — | 456 | ||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 74,607 | 35,915 | 171,251 | ||||||||
Net income attributable to Ares Management Corporation | 57,020 | 76,178 | 111,808 | ||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | 21,700 | 12,176 | ||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 35,320 | $ | 54,478 | $ | 99,632 | |||||
Net income attributable to Ares Management Corporation per share of Class A common stock: | |||||||||||
Basic | $ | 0.30 | $ | 0.62 | $ | 1.22 | |||||
Diluted | $ | 0.30 | $ | 0.62 | $ | 1.20 | |||||
Weighted-average shares of Class A common stock:(1) | |||||||||||
Basic | 96,023,147 | 81,838,007 | 80,749,671 | ||||||||
Diluted | 96,023,147 | 81,838,007 | 82,937,030 |
For the Years Ended December 31, | Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
As Adjusted | As Adjusted | ||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 152,139 | $ | 172,911 | $ | 286,901 | Net income | $ | 324,485 | $ | 372,804 | $ | 152,139 | ||||||||||||||||||||||||||||||
Other comprehensive income: | Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | (13,190 | ) | 13,927 | (15,754 | ) | Foreign currency translation adjustments, net of tax | 28,728 | 3,322 | (13,190) | ||||||||||||||||||||||||||||||||||
Total comprehensive income | 138,949 | 186,838 | 271,147 | Total comprehensive income | 353,213 | 376,126 | 138,949 | ||||||||||||||||||||||||||||||||||||
Less: Comprehensive income attributable to redeemable interest in Ares Operating Group entities | Less: Comprehensive income attributable to redeemable interest in Ares Operating Group entities | 562 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds | 15,575 | 62,165 | 3,336 | Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds | 43,184 | 37,869 | 15,575 | ||||||||||||||||||||||||||||||||||||
Less: Comprehensive income attributable to redeemable interests in Ares Operating Group entities | — | — | 409 | ||||||||||||||||||||||||||||||||||||||||
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities | 70,670 | 43,764 | 159,914 | Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities | 150,795 | 186,896 | 70,670 | ||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Ares Management Corporation | $ | 52,704 | $ | 80,909 | $ | 107,488 | Comprehensive income attributable to Ares Management Corporation | $ | 158,672 | $ | 151,361 | $ | 52,704 |
Preferred Equity | Series A Preferred Stock | Shareholders' Equity | Class A Common Stock | Class C Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest in Ares Operating Group Entities | Non-Controlling Interest in Consolidated Funds | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2018 | $ | 298,761 | $ | 0 | $ | 268,238 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (4,208) | $ | 341,069 | $ | 533,821 | $ | 1,437,681 | |||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2018-02 | — | — | 1,202 | — | — | — | — | (1,202) | — | — | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | — | (26,712) | — | — | 9,140 | — | — | 16,361 | — | (1,211) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation of a new fund | — | — | — | — | — | — | — | — | — | 42,942 | 42,942 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | 106,283 | — | — | — | — | — | 3,128 | 71,009 | 180,420 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | (16,275) | (5,425) | (104,501) | — | — | — | (30,348) | — | (177,797) | (159,710) | (494,056) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 16,275 | 5,425 | 34,308 | — | — | — | 1,012 | — | 74,607 | 20,512 | 152,139 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | — | (3,114) | (3,937) | (4,937) | (11,988) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 36,245 | — | — | 2,820 | — | — | 49,349 | — | 88,414 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications resulting from conversion to a corporation | (298,761) | 298,761 | (315,063) | 1,016 | — | 314,047 | — | — | — | — | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 0 | 298,761 | 0 | 1,016 | 0 | 326,007 | (29,336) | (8,524) | 302,780 | 503,637 | 1,394,341 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relinquished with deconsolidation of funds | — | — | — | — | — | — | — | — | — | (55) | (55) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | — | 0 | 22 | — | (133,976) | — | — | 105,341 | — | (28,613) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of Class A common stock | — | — | — | (4) | — | (10,445) | — | — | — | — | (10,449) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | 0 | 70 | — | 206,635 | — | — | 1,876 | 172,851 | 381,432 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | 0 | (21,700) | 0 | — | — | — | (148,668) | — | (174,999) | (96,282) | (441,649) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 0 | 21,700 | 0 | — | — | — | 127,184 | — | 184,216 | 39,704 | 372,804 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | — | 2,477 | 2,680 | (1,835) | 3,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 0 | — | — | 46,560 | — | — | 50,394 | — | 96,954 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | 48 | — | 90,463 | — | — | — | — | 90,511 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 0 | 298,761 | 0 | 1,152 | 0 | 525,244 | (50,820) | (6,047) | 472,288 | 618,020 | 1,858,598 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation and deconsolidation of funds, net | — | — | — | — | — | — | — | — | — | (2,407) | (2,407) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | — | — | 73 | (28) | (328,419) | — | — | 229,229 | — | (99,145) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | 198 | 1,152 | 687,142 | — | — | — | — | 688,492 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | 481 | — | — | 44,799 | 132,430 | 177,710 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | 0 | (21,700) | — | — | — | (231,446) | — | (215,334) | (251,507) | (719,987) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 0 | 21,700 | 0 | — | — | — | 130,442 | — | 145,234 | 28,085 | 325,461 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | — | 6,530 | 5,561 | 15,099 | 27,190 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 0 | — | — | 66,394 | — | — | 56,592 | — | 122,986 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | 49 | — | 92,827 | — | — | — | — | 92,876 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 0 | $ | 298,761 | $ | 0 | $ | 1,472 | $ | 1,124 | $ | 1,043,669 | $ | (151,824) | $ | 483 | $ | 738,369 | $ | 539,720 | $ | 2,471,774 |
Preferred Equity | Series A Preferred Stock | Shareholders' Equity | Class A Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling interest in Ares Operating Group Entities | Equity Appropriated for Consolidated Funds | Non-Controlling Interest in Consolidated Funds | Total Equity | |||||||||||||||||||||||||||||||||
Balance at December 31, 2015 | $ | — | $ | — | $ | 251,537 | $ | — | $ | — | $ | — | $ | (4,619 | ) | $ | 397,883 | $ | 3,367 | $ | 320,238 | $ | 968,406 | ||||||||||||||||||||
Cumulative effect of accounting change due to the adoption of ASU 2014-13 | — | — | — | — | — | — | — | — | (3,367 | ) | — | (3,367 | ) | ||||||||||||||||||||||||||||||
Issuance of preferred equity | 298,761 | — | — | — | — | — | — | — | — | — | 298,761 | ||||||||||||||||||||||||||||||||
Changes in ownership interests | — | — | 1,446 | — | — | — | — | (2,327 | ) | — | — | (881 | ) | ||||||||||||||||||||||||||||||
Reallocation of equity due to redemption of ownership interest | — | — | 1,276 | — | — | — | — | 2,061 | — | — | 3,337 | ||||||||||||||||||||||||||||||||
Deferred tax assets effects arising from allocation of Partners' capital | — | — | 724 | — | — | — | — | 3 | — | — | 727 | ||||||||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | — | 132,932 | 132,932 | ||||||||||||||||||||||||||||||||
Distributions | (12,176 | ) | — | (67,041 | ) | — | — | — | — | (132,961 | ) | — | (118,471 | ) | (330,649 | ) | |||||||||||||||||||||||||||
Net income | 12,176 | — | 99,632 | — | — | — | — | 171,251 | — | 3,386 | 286,445 | ||||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | — | (4,320 | ) | (11,337 | ) | — | (50 | ) | (15,707 | ) | ||||||||||||||||||||||||||||
Equity compensation | — | — | 14,216 | — | — | — | — | 23,042 | — | — | 37,258 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | 298,761 | — | 301,790 | — | — | — | (8,939 | ) | 447,615 | — | 338,035 | 1,377,262 | |||||||||||||||||||||||||||||||
Changes in ownership interests | — | — | (5,370 | ) | — | — | — | — | (10,286 | ) | — | — | (15,656 | ) | |||||||||||||||||||||||||||||
Deferred tax liabilities effects arising from allocation of Partners' capital | — | — | (6,609 | ) | — | — | — | — | 89 | — | — | (6,520 | ) | ||||||||||||||||||||||||||||||
Contributions | — | — | 1,036 | — | — | — | — | 4,213 | — | 190,154 | 195,403 | ||||||||||||||||||||||||||||||||
Distributions | (21,700 | ) | — | (92,587 | ) | — | — | — | — | (169,069 | ) | — | (61,866 | ) | (345,222 | ) | |||||||||||||||||||||||||||
Net income | 21,700 | — | 54,478 | — | — | — | — | 35,915 | — | 60,818 | 172,911 | ||||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | — | 4,731 | 7,849 | — | 1,347 | 13,927 | ||||||||||||||||||||||||||||||||
Equity compensation | — | — | 26,327 | — | — | — | — | 41,860 | — | — | 68,187 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 298,761 | — | 279,065 | — | — | — | (4,208 | ) | 358,186 | — | 528,488 | 1,460,292 | |||||||||||||||||||||||||||||||
Cumulative effect of the adoption of ASC 606 | — | — | (10,827 | ) | — | — | — | — | (17,117 | ) | — | 5,333 | (22,611 | ) | |||||||||||||||||||||||||||||
As adjusted balance at January 1, 2018 | 298,761 | — | 268,238 | — | — | — | (4,208 | ) | 341,069 | — | 533,821 | 1,437,681 | |||||||||||||||||||||||||||||||
Adoption of ASU 2018-02 (see note #2) | — | — | 1,202 | — | — | — | (1,202 | ) | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | — | (26,712 | ) | — | 9,140 | — | — | 16,361 | — | — | (1,211 | ) | ||||||||||||||||||||||||||||||
Consolidation of new fund | — | — | — | — | — | — | — | — | — | 42,942 | 42,942 | ||||||||||||||||||||||||||||||||
Contributions | — | — | 106,283 | — | — | — | — | 3,128 | — | 71,009 | 180,420 | ||||||||||||||||||||||||||||||||
Dividends/distributions | (16,275 | ) | (5,425 | ) | (104,501 | ) | — | — | (30,348 | ) | — | (177,797 | ) | — | (159,710 | ) | (494,056 | ) | |||||||||||||||||||||||||
Net income | 16,275 | 5,425 | 34,308 | — | — | 1,012 | — | 74,607 | — | 20,512 | 152,139 | ||||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | — | (3,114 | ) | (3,937 | ) | — | (4,937 | ) | (11,988 | ) | ||||||||||||||||||||||||||||
Equity compensation | — | — | 36,245 | — | 2,820 | — | — | 49,349 | — | — | 88,414 | ||||||||||||||||||||||||||||||||
Reclassifications resulting from conversion to a corporation | (298,761 | ) | 298,761 | (315,063 | ) | 1,016 | 314,047 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | — | $ | 298,761 | $ | — | $ | 1,016 | $ | 326,007 | $ | (29,336 | ) | $ | (8,524 | ) | $ | 302,780 | $ | — | $ | 503,637 | $ | 1,394,341 |
For the Years Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2017 | 2016 | Year ended December 31, | |||||||||||||||||||||||||
As Adjusted | As Adjusted | 2020 | 2019 | 2018 | ||||||||||||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | |||||||||||||||||||||||||||
Net income | $ | 152,139 | $ | 172,911 | $ | 286,901 | Net income | $ | 324,485 | $ | 372,804 | $ | 152,139 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||||||||||||||||
Equity compensation expense | 89,724 | 69,711 | 39,065 | Equity compensation expense | 122,986 | 97,691 | 89,724 | |||||||||||||||||||||
Depreciation and amortization | 28,517 | 32,809 | 37,455 | Depreciation and amortization | 41,248 | 39,459 | 28,517 | |||||||||||||||||||||
Net realized and unrealized gain on investments | 12,935 | (67,034 | ) | (28,251 | ) | |||||||||||||||||||||||
Contingent consideration | — | (20,156 | ) | (17,674 | ) | |||||||||||||||||||||||
Net realized and unrealized (gains) losses on investments | Net realized and unrealized (gains) losses on investments | (8,039) | (53,092) | 12,935 | ||||||||||||||||||||||||
Other non-cash amounts | 10 | (1,731 | ) | — | Other non-cash amounts | 0 | 0 | 10 | ||||||||||||||||||||
Investments purchased | (248,460 | ) | (257,295 | ) | (120,413 | ) | Investments purchased | (90,851) | (278,798) | (248,460) | ||||||||||||||||||
Proceeds from sale of investments | 381,703 | 154,278 | 145,439 | Proceeds from sale of investments | 174,679 | 284,810 | 381,703 | |||||||||||||||||||||
Allocable to non-controlling interests in Consolidated Funds: | ||||||||||||||||||||||||||||
Receipt of non-cash interest income and dividends from investments | (2,372 | ) | (453 | ) | (7,720 | ) | ||||||||||||||||||||||
Net realized and unrealized (gain) loss on investments | 1,583 | (100,124 | ) | 2,057 | ||||||||||||||||||||||||
Amortization on debt and investments | (2,147 | ) | (4,017 | ) | (4,566 | ) | ||||||||||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds: | Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||||||
Net realized and unrealized (gains) losses on investments | Net realized and unrealized (gains) losses on investments | 96,864 | (15,136) | 1,583 | ||||||||||||||||||||||||
Other non-cash amounts | Other non-cash amounts | (34,297) | (8,383) | (4,519) | ||||||||||||||||||||||||
Investments purchased | (4,919,118 | ) | (4,058,936 | ) | (2,263,891 | ) | Investments purchased | (6,615,732) | (5,216,931) | (4,919,118) | ||||||||||||||||||
Proceeds from sale or pay down of investments | 2,756,924 | 2,303,315 | 1,498,398 | |||||||||||||||||||||||||
Proceeds from sale of investments | Proceeds from sale of investments | 5,502,325 | 3,077,755 | 2,756,924 | ||||||||||||||||||||||||
Cash flows due to changes in operating assets and liabilities: | Cash flows due to changes in operating assets and liabilities: | |||||||||||||||||||||||||||
Net performance income receivable | 29,578 | (90,444 | ) | (28,306 | ) | Net performance income receivable | (24,351) | (103,962) | 29,578 | |||||||||||||||||||
Due to/from affiliates | 33,023 | (2,483 | ) | (26,000 | ) | Due to/from affiliates | (76,185) | (75,138) | 33,023 | |||||||||||||||||||
Other assets | (49,789 | ) | (28,674 | ) | (162 | ) | Other assets | (36,693) | 26,684 | (66,795) | ||||||||||||||||||
Accrued compensation and benefits | 114 | (105,109 | ) | 9,181 | Accrued compensation and benefits | 54,539 | 7,650 | 114 | ||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 2,262 | 14,559 | 5,328 | Accounts payable, accrued expenses and other liabilities | 21,035 | 30,669 | 2,306 | |||||||||||||||||||||
Deferred taxes | (17,006 | ) | (8,112 | ) | (28,463 | ) | ||||||||||||||||||||||
Allocable to non-controlling interest in Consolidated Funds: | ||||||||||||||||||||||||||||
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds: | Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds: | |||||||||||||||||||||||||||
Change in cash and cash equivalents held at Consolidated Funds | 171,856 | (101,224 | ) | (295,769 | ) | Change in cash and cash equivalents held at Consolidated Funds | 83,944 | (221,677) | 171,856 | |||||||||||||||||||
Cash acquired/relinquished with consolidation/deconsolidation of Consolidated Funds | 11,915 | 198,297 | — | |||||||||||||||||||||||||
Net cash acquired (relinquished) with consolidation/deconsolidation of Consolidated Funds | Net cash acquired (relinquished) with consolidation/deconsolidation of Consolidated Funds | 60,895 | (81,059) | 11,915 | ||||||||||||||||||||||||
Change in other assets and receivables held at Consolidated Funds | 11,962 | (48,837 | ) | 3,872 | Change in other assets and receivables held at Consolidated Funds | (33,298) | (54,834) | 11,962 | ||||||||||||||||||||
Change in other liabilities and payables held at Consolidated Funds | 137,545 | 85,654 | 167,864 | Change in other liabilities and payables held at Consolidated Funds | 10,787 | 88,467 | 137,545 | |||||||||||||||||||||
Net cash used in operating activities | (1,417,102 | ) | (1,863,095 | ) | (625,655 | ) | Net cash used in operating activities | (425,659) | (2,083,021) | (1,417,058) | ||||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net | (18,419 | ) | (33,160 | ) | (11,913 | ) | ||||||||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | Purchase of furniture, equipment and leasehold improvements, net of disposals | (15,942) | (16,796) | (18,419) | ||||||||||||||||||||||||
Acquisitions, net of cash acquired | Acquisitions, net of cash acquired | (120,822) | 0 | 0 | ||||||||||||||||||||||||
Net cash used in investing activities | (18,419 | ) | (33,160 | ) | (11,913 | ) | Net cash used in investing activities | (136,764) | (16,796) | (18,419) | ||||||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||||||||||||
Net proceeds from issuance of Class A common stock | Net proceeds from issuance of Class A common stock | 383,154 | 206,705 | 105,333 | ||||||||||||||||||||||||
Proceeds from credit facility | 680,000 | 455,000 | 147,000 | Proceeds from credit facility | 790,000 | 335,000 | 680,000 | |||||||||||||||||||||
Proceeds from senior notes | Proceeds from senior notes | 399,084 | 0 | 0 | ||||||||||||||||||||||||
Proceeds from term notes | 44,050 | 100,459 | 26,036 | Proceeds from term notes | 0 | 0 | 44,050 | |||||||||||||||||||||
Repayments of credit facility | (655,000 | ) | (245,000 | ) | (257,000 | ) | Repayments of credit facility | (860,000) | (500,000) | (655,000) | ||||||||||||||||||
Repayments of term notes | (206,089 | ) | — | — | Repayments of term notes | 0 | 0 | (206,089) | ||||||||||||||||||||
Proceeds from issuance of common shares | 105,333 | — | — | |||||||||||||||||||||||||
Proceeds from the issuance of preferred equity, net of issuance costs | — | — | 298,761 | |||||||||||||||||||||||||
Dividends and distributions | (312,646 | ) | (261,656 | ) | (200,663 | ) | Dividends and distributions | (446,780) | (323,667) | (312,646) | ||||||||||||||||||
Preferred equity dividends and distributions | (21,700 | ) | (21,700 | ) | (12,176 | ) | ||||||||||||||||||||||
Redemption of redeemable interest and put option liability | — | — | (40,000 | ) | ||||||||||||||||||||||||
Taxes paid in net settlement of vested common units | (18,014 | ) | (14,308 | ) | — | |||||||||||||||||||||||
Stock option exercise | 950 | 1,036 | — | |||||||||||||||||||||||||
Tax benefit from share-based payment | 44 | 81 | — | |||||||||||||||||||||||||
Series A Preferred Stock dividends | Series A Preferred Stock dividends | (21,700) | (21,700) | (21,700) | ||||||||||||||||||||||||
Repurchases of Class A common stock | Repurchases of Class A common stock | 0 | (10,449) | 0 | ||||||||||||||||||||||||
Stock option exercises | Stock option exercises | 92,877 | 90,511 | 950 | ||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | Taxes paid related to net share settlement of equity awards | (95,368) | (33,554) | (18,014) | ||||||||||||||||||||||||
Other financing activities | 3,128 | 2,819 | (701 | ) | Other financing activities | (1,531) | (3,212) | 3,128 | ||||||||||||||||||||
Allocable to non-controlling interest in Consolidated Funds: | ||||||||||||||||||||||||||||
Allocable to non-controlling interests in Consolidated Funds: | Allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||||||
Contributions from non-controlling interests in Consolidated Funds | 71,009 | 190,154 | 132,932 | Contributions from non-controlling interests in Consolidated Funds | 132,430 | 172,851 | 71,009 | |||||||||||||||||||||
Distributions to non-controlling interests in Consolidated Funds | (159,710 | ) | (61,866 | ) | (118,471 | ) | Distributions to non-controlling interests in Consolidated Funds | (251,507) | (96,282) | (159,710) | ||||||||||||||||||
Borrowings under loan obligations by Consolidated Funds | 2,901,633 | 2,949,949 | 1,621,514 | Borrowings under loan obligations by Consolidated Funds | 1,013,291 | 3,341,837 | 2,901,633 | |||||||||||||||||||||
Repayments under loan obligations by Consolidated Funds | (1,027,649 | ) | (1,440,010 | ) | (716,468 | ) | Repayments under loan obligations by Consolidated Funds | (190,055) | (1,035,710) | (1,027,649) | ||||||||||||||||||
Net cash provided by financing activities | 1,405,339 | 1,654,958 | 880,764 | Net cash provided by financing activities | 943,895 | 2,122,330 | 1,405,295 | |||||||||||||||||||||
Effect of exchange rate changes | 21,500 | 17,365 | (21,818 | ) | Effect of exchange rate changes | 19,956 | 5,624 | 21,500 | ||||||||||||||||||||
Net change in cash and cash equivalents | (8,682 | ) | (223,932 | ) | 221,378 | Net change in cash and cash equivalents | 401,428 | 28,137 | (8,682) | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 118,929 | 342,861 | 121,483 | Cash and cash equivalents, beginning of period | 138,384 | 110,247 | 118,929 | |||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 110,247 | $ | 118,929 | $ | 342,861 | Cash and cash equivalents, end of period | $ | 539,812 | $ | 138,384 | $ | 110,247 | |||||||||||||||
Supplemental information: | ||||||||||||||||||||||||||||
Ares Management Corporation and consolidated subsidiaries: | ||||||||||||||||||||||||||||
Supplemental disclosure of non-cash financing activities: | Supplemental disclosure of non-cash financing activities: | |||||||||||||||||||||||||||
Issuance of Class A common stock in connection with acquisitions | Issuance of Class A common stock in connection with acquisitions | $ | 305,338 | $ | 0 | $ | 0 | |||||||||||||||||||||
Supplemental information of cash flow information: | Supplemental information of cash flow information: | |||||||||||||||||||||||||||
Cash paid during the period for interest | $ | 19,881 | $ | 17,222 | $ | 15,390 | Cash paid during the period for interest | $ | 257,132 | $ | 233,090 | $ | 184,951 | |||||||||||||||
Cash paid during the period for income taxes | $ | 26,740 | $ | 18,034 | $ | 26,402 | Cash paid during the period for income taxes | $ | 38,174 | $ | 35,625 | $ | 27,482 | |||||||||||||||
Consolidated Funds: | ||||||||||||||||||||||||||||
Cash paid during the period for interest | $ | 165,070 | $ | 76,889 | $ | 53,704 | ||||||||||||||||||||||
Cash paid during the period for income taxes | $ | 742 | $ | 145 | $ | 378 |
Consolidated Statement of Financial Condition | ||||||||||||
As of December 31, 2017 | ||||||||||||
As Previously Reported | Adjustments | As Adjusted | ||||||||||
(audited) | ||||||||||||
Assets | ||||||||||||
Investments ($1,077,236 of accrued carried interest) | $ | 647,335 | $ | 1,077,236 | $ | 1,724,571 | ||||||
Performance income receivable | 1,099,847 | (1,099,847 | ) | — | ||||||||
Other assets | 107,730 | 22,611 | (1) | 130,341 |
Consolidated Statement of Operations | ||||||||||||
For the Year Ended December 31, 2017 | ||||||||||||
As Previously Reported | Adjustments | As Adjusted | ||||||||||
Revenues | ||||||||||||
Performance income | $ | 636,674 | $ | (636,674 | ) | $ | — | |||||
Carried interest allocation | — | 620,454 | 620,454 | |||||||||
Incentive fees | — | 16,220 | 16,220 | |||||||||
Principal investment income | — | 64,444 | 64,444 | |||||||||
Total revenues | 1,415,499 | 64,444 | 1,479,943 | |||||||||
Other income (expense) | ||||||||||||
Net realized and unrealized gain on investments | 67,034 | (58,772 | ) | 8,262 | ||||||||
Interest and dividend income | 12,715 | (5,672 | ) | 7,043 |
Consolidated Statement of Operations | ||||||||||||
For the Year Ended December 31, 2016 | ||||||||||||
As Previously Reported | Adjustments | As Adjusted | ||||||||||
Revenues | ||||||||||||
Performance income | $ | 517,852 | $ | (517,852 | ) | $ | — | |||||
Carried interest allocation | — | 494,580 | 494,580 | |||||||||
Incentive fees | — | 23,272 | 23,272 | |||||||||
Principal investment income | — | 55,168 | 55,168 | |||||||||
Total revenues | 1,199,205 | 55,168 | 1,254,373 | |||||||||
Other income (expense) | ||||||||||||
Net realized and unrealized gain on investments | 28,251 | (35,880 | ) | (7,629 | ) | |||||||
Interest and dividend income | 23,781 | (19,288 | ) | 4,493 |
As of January 1, 2018 | |||||||||||
As adjusted December 31, 2017 | Adjustments | As Adjusted for ASC 606 adoption | |||||||||
Investments | $ | 1,724,571 | $ | — | $ | 1,724,571 | |||||
Other assets | 130,341 | (22,611 | ) | (1) | 107,730 | ||||||
Total assets | 8,563,522 | (22,611 | ) | 8,540,911 | |||||||
Total liabilities | 7,103,230 | — | 7,103,230 | ||||||||
Cumulative effect adjustment to equity(2) | — | (22,611 | ) | (22,611 | ) | ||||||
Total equity | 1,460,292 | (22,611 | ) | 1,437,681 | |||||||
Total liabilities, non-controlling interests and equity | 8,563,522 | (22,611 | ) | 8,540,911 |
Preferred Equity | Shareholders' Capital | Accumulated Other Comprehensive Loss | Non-controlling interest in Ares Operating Group Entities | Non-Controlling Interest in Consolidated Funds | Total Equity | |||||||||||||||||||
Balance at December 31, 2017 | $ | 298,761 | $ | 279,065 | $ | (4,208 | ) | $ | 358,186 | $ | 528,488 | $ | 1,460,292 | |||||||||||
Cumulative effect of the adoption of ASC 606 | — | (10,827 | ) | — | (17,117 | ) | 5,333 | (22,611 | ) | |||||||||||||||
As adjusted balance at January 1, 2018 | $ | 298,761 | $ | 268,238 | $ | (4,208 | ) | $ | 341,069 | $ | 533,821 | $ | 1,437,681 |
Consolidated Statement of Financial Condition | ||||||||||||
As of December 31, 2018 | ||||||||||||
As Reported | Adjustments | Balances without adoption of ASC 606 | ||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 110,247 | $ | — | $ | 110,247 | ||||||
Investments ($841,079 of accrued carried interest) | 1,326,137 | — | 1,326,137 | |||||||||
Due from affiliates | 199,377 | 199,377 | ||||||||||
Deferred tax asset, net | 42,137 | (2,474 | ) | 39,663 | ||||||||
Other assets | 160,150 | 42,848 | 202,998 | |||||||||
Total assets | 10,154,692 | 40,373 | 10,195,065 | |||||||||
Commitments and contingencies | ||||||||||||
Non-controlling interest in Consolidated Funds | 503,637 | (7,574 | ) | 496,063 | ||||||||
Non-controlling interest in Ares Operating Group entities | 302,780 | 29,663 | 332,443 | |||||||||
Stockholders' Equity | ||||||||||||
Additional paid-in-capital | 326,007 | 23,587 | 349,594 | |||||||||
Retained earnings | (29,336 | ) | (5,095 | ) | (34,431 | ) | ||||||
Accumulated other comprehensive loss, net of tax | (8,524 | ) | (208 | ) | (8,732 | ) | ||||||
Total stockholders' equity | 587,924 | 18,284 | 606,208 | |||||||||
Total equity | 1,394,341 | 40,373 | 1,434,714 | |||||||||
Total liabilities and equity | 10,154,692 | 40,373 | 10,195,065 | |||||||||
Consolidated Statement of Operations | ||||||||||||
For the Year Ended December 31, 2018 | ||||||||||||
As Reported | Adjustments | Balances without adoption of ASC 606 | ||||||||||
Revenues | ||||||||||||
Incentive fees | $ | 63,380 | $ | 20,997 | $ | 84,377 | ||||||
Total revenues | 958,461 | 20,997 | 979,458 | |||||||||
Expenses | ||||||||||||
Expenses of Consolidated Funds | 53,764 | — | 53,764 | |||||||||
Total expenses | 870,362 | — | 870,362 | |||||||||
Other income (expense) | ||||||||||||
Other income, net | (851 | ) | 30 | (821 | ) | |||||||
Total other income | 96,242 | 30 | 96,272 | |||||||||
Income before taxes | 184,341 | 21,027 | 205,368 | |||||||||
Income tax expense | 32,202 | 2,475 | 34,677 | |||||||||
Net income | 152,139 | 18,552 | 170,691 | |||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 20,512 | (1,921 | ) | 18,591 | ||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 74,607 | 12,808 | 87,415 | |||||||||
Net income attributable to Ares Management Corporation | 57,020 | 7,665 | 64,685 | |||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | — | 21,700 | |||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | 35,320 | 7,665 | 42,985 |
For the Year Ended December 31, 2018 | |||||||||||
As Reported | Adjustments | Balances without adoption of ASC 606 | |||||||||
Net income | $ | 152,139 | $ | 18,552 | $ | 170,691 | |||||
Other comprehensive income: | |||||||||||
Foreign currency translation adjustments | (13,190 | ) | (470 | ) | (13,660 | ) | |||||
Total comprehensive income | 138,949 | 18,082 | 157,031 | ||||||||
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds | 15,575 | (1,921 | ) | 13,654 | |||||||
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities | 70,670 | 12,546 | 83,216 | ||||||||
Comprehensive income attributable to Ares Management Corporation | $ | 52,704 | $ | 7,457 | $ | 60,161 |
For the Year Ended December 31, 2018 | ||||||||||||
As Reported | Adjustments | Balances without adoption of ASC 606 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 152,139 | $ | 18,552 | $ | 170,691 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Other assets | (49,789 | ) | (22,948 | ) | (72,737 | ) | ||||||
Deferred taxes | (17,006 | ) | 2,475 | (14,531 | ) | |||||||
Change in other liabilities and payables held at Consolidated Funds | 137,545 | 1,921 | 139,466 | |||||||||
Net cash used in operating activities | $ | (1,417,102 | ) | $ | — | (1,417,102 | ) |
Less than 1 year | 1 - 3 years | 4 - 5 years | Thereafter | Total | ||||||||||||||||||||||||||||
The Company: | ||||||||||||||||||||||||||||||||
Operating lease obligations(1) | $ | 35,571 | $ | 73,733 | $ | 63,402 | $ | 38,712 | $ | 211,418 | ||||||||||||||||||||||
Debt obligations payable(2) | — | — | 247,285 | 395,713 | 642,998 | |||||||||||||||||||||||||||
Capital lease obligations | 519 | 644 | 163 | — | 1,326 | |||||||||||||||||||||||||||
Interest obligations on debt(3) | 27,603 | 55,206 | 41,726 | 58,500 | 183,035 | |||||||||||||||||||||||||||
Capital commitments(4) | 784,221 | — | — | — | 784,221 | |||||||||||||||||||||||||||
Subtotal | 847,914 | 129,583 | 352,576 | 492,925 | 1,822,998 | |||||||||||||||||||||||||||
Consolidated Funds: | ||||||||||||||||||||||||||||||||
Debt obligations payable | 104,000 | 17,909 | — | 10,427,759 | 10,549,668 | |||||||||||||||||||||||||||
Interest obligations on debt(3) | 188,510 | 374,568 | 374,767 | 958,844 | 1,896,689 | |||||||||||||||||||||||||||
Capital commitments of Consolidated Funds(4) | 15,599 | — | — | — | 15,599 | |||||||||||||||||||||||||||
Total | $ | 1,156,023 | $ | 522,060 | $ | 727,343 | $ | 11,879,528 | $ | 14,284,954 |
Report of Independent Registered Public Accounting Firm | ||
Consolidated Statements of Financial Condition as of December 31, 2020 and 2019 | ||
Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018 | ||
Consolidated Statements of Comprehensive Income for the years ended December 31, 2020, 2019 and 2018 | ||
Consolidated Statements of Changes in Equity for the years ended December 31, 2020, 2019 and 2018 | ||
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018 | ||
Notes to Consolidated Financial Statements |
Exhibit No. | Description | |||||||
Certificate of Incorporation of Ares Management Corporation (incorporated by reference to Exhibit 99.3 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018). | ||||||||
Bylaws of Ares Management Corporation (incorporated by reference to Exhibit 99.4 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018). | ||||||||
Description of Ares Management Corporation's Securities. | ||||||||
Indenture dated as of October 8, 2014 among Ares Finance Co. LLC, Ares Management, L.P., Ares Holdings Inc., Ares Domestic Holdings Inc., Ares Real Estate Holdings LLC, Ares Holdings L.P., Ares Domestic Holdings L.P., Ares Investments L.P., Ares Real Estate Holdings L.P., Ares Management LLC, Ares Investments Holdings LLC and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on October 8, 2014). | ||||||||
First Supplemental Indenture dated as of October 8, 2014 among Ares Finance Co. LLC, Ares Management, L.P., Ares Holdings Inc., Ares Domestic Holdings Inc., Ares Real Estate Holdings LLC, Ares Holdings L.P., Ares Domestic Holdings L.P., Ares Investments L.P., Ares Real Estate Holdings L.P., Ares Management LLC, Ares Investments Holdings LLC and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on October 8, 2014). | ||||||||
First Amendment, dated as of August 7, 2015, to the First Supplemental Indenture, dated October 8, 2014, to the indenture, dated October 8, 2014, among Ares Finance Co. LLC, the guarantors party thereto and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on August 7, 2015). | ||||||||
Form of 4.000% Senior Note due 2024 (incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on October 8, 2014). | ||||||||
Form of 7.00% Series A Preferred Stock Certificate (incorporated by reference to Exhibit 99.5 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018). | ||||||||
Indenture dated as of June 15, 2020 among Ares Finance Co. II LLC, Ares Holdings L.P., Ares Investments L.P., Ares Management LLC, Ares Investments Holdings LLC, Ares Finance Co. LLC and Ares Offshore Holdings L.P. and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on June 15, 2020). | ||||||||
First Supplemental Indenture dated as of June 15, 2020 among Ares Finance Co. II LLC, Ares Holdings L.P., Ares Investments L.P., Ares Management LLC, Ares Investments Holdings LLC, Ares Finance Co. LLC and Ares Offshore Holdings L.P. and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on June 15, 2020). | ||||||||
Form of 3.250% Senior Note due 2030 (incorporated by reference to Exhibit 4.3 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on June 15, 2020). |
Exhibit No. | Description | |||||||
Third Amended and Restated Limited Partnership Agreement of Ares Holdings L.P., dated November 26, 2018. | ||||||||
Fourth Amended and Restated Limited Partnership Agreement of Ares Offshore Holdings L.P. dated November 26, 2018. | ||||||||
Third Amended and Restated Limited Partnership Agreement of Ares Investments L.P. dated November 26, 2018. | ||||||||
Investor Rights Agreement. | ||||||||
Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Fourth Amended and Restated Exchange Agreement, dated as of November 26, 2018. | ||||||||
Second Amended and Restated Tax Receivable Agreement. | ||||||||
Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.10 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-194919) filed with the SEC on April 28, 2014). | ||||||||
Amendment No. 1, dated as of July 15, 2014, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10‑Q (File No. 001-36429) filed with the SEC on November 12, 2014). | ||||||||
Amendment No. 2, dated as of September 24, 2014, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10‑Q (File No. 001-36429) filed with the SEC on November 12, 2014). | ||||||||
Amendment No. 3, dated as of July 23, 2015, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8‑K (File No. 001-36429) filed with the SEC on July 28, 2015). | ||||||||
Amendment No. 4, dated as of August 5, 2015, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8‑K (File No. 001-36429) filed with the SEC on August 7, 2015). | ||||||||
Amendment No. 5, dated as of December 16, 2015, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8‑K (File No. 001-36429) filed with the SEC on December 21, 2015). | ||||||||
Amendment No. 6, dated as of May 23, 2016, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on May 26, 2016). | ||||||||
Amendment No. 7, dated as of February 24, 2017, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., Ares Investments L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.15 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 001-36429, filed with the SEC on February 27, 2017). | ||||||||
Amendment No. 8, dated as of March 21, 2019, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., Ares Investments L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on March 26, 2019). |
Exhibit No. | Description | |||||||
Amendment No. 9, dated as of March 30, 2020, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., Ares Investments L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on April 1, 2020). | ||||||||
Restated Investment Advisory and Management Agreement between Ares Capital Corporation and Ares Capital Management LLC, dated as of June 6, 2011 (incorporated by reference to Exhibit 10.11 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-194919) filed with the SEC on April 16, 2014). | ||||||||
Second Amended and Restated Investment Advisory and Management Agreement, dated June 6, 2019, between Ares Capital Corporation and Ares Capital Management LLC (incorporated by reference to exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-36429) filed with the SEC on November 6, 2019). | ||||||||
Form of Indemnification Agreement. # | ||||||||
Form of Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Form of Option Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Form of Phantom Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Form of ARCC Incentive Fee Award (incorporated by reference to Exhibit 10.16 to the Registrant’s Registration Statement on Form S‑1/A (File No. 333-194919) filed with the SEC on April 11, 2014). | ||||||||
Form of Amended and Restated Limited Partnership Agreement of Carry Vehicles (incorporated by reference to Exhibit 10.28 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 (File No. 001-36429, filed with the SEC on February 29, 2016). | ||||||||
Form of Supplemental Award Agreement for Carried Interest (incorporated by reference to Exhibit 10.29 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 (File No. 001-36429, filed with the SEC on February 29, 2016). | ||||||||
Form of Annual Incentive Fee Award Letter (incorporated by reference to Exhibit 10.24 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 001-36429, filed with the SEC on February 27, 2017). | ||||||||
Form of Deferred Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Offer Letter for Michael R. McFerran, dated March 10, 2015 (incorporated by reference to Exhibit 10.26 to the Registrant’s Annual Report on Form 10-K (File No. 001-36429) filed with the SEC on March 20, 2015). # | ||||||||
Form of Director Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.4 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Restricted Unit Agreement, dated as of July 31, 2018, by and between Michael J Arougheti and Ares Management, L.P. (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 001-36429) filed with the SEC on August 6, 2018). # | ||||||||
Stock Purchase Agreement, dated July 9, 2019, between Aspida Holdco, LLC and GBIG Holdings, Inc. (incorporated by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K (File 001-36429) filed with the SEC on July 9, 2019). | ||||||||
Share Purchase Agreement, dated March 27, 2020, between Sumitomo Mitsui Banking Corporation and Ares Management Corporation (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File 001-36429) filed with the SEC on March 30, 2020). | ||||||||
Investor Rights Agreement, dated March 31, 2020, by and between Sumitomo Mitsui Banking Corporation and Ares Management Corporation. | ||||||||
Form of Executive Officer Time-Based Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Form of Executive Officer Performance-Based Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Subsidiaries of Ares Management Corporation. | ||||||||
Consent of Ernst and Young LLP. |
Exhibit No. | Description | |||||||
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a). | ||||||||
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a). | ||||||||
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350. | ||||||||
101.INS* | Inline XBRL Instance Document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104* | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
ARES MANAGEMENT CORPORATION | |||||||||||
Dated: February 25, 2021 | By: | /s/ Michael J Arougheti | |||||||||
Name: | Michael J Arougheti | ||||||||||
Title: | Co-Founder, Chief Executive Officer & President (Principal Executive Officer) |
By: | /s/ Antony P. Ressler | |||||||||||||
Name: | Antony P. Ressler | Dated: February 25, 2021 | ||||||||||||
Title: | Executive Chairman & Co-Founder | |||||||||||||
By: | /s/ Michael J Arougheti | |||||||||||||
Name: | Michael J Arougheti | Dated: February 25, 2021 | ||||||||||||
Title: | Director, Co-Founder, Chief Executive Officer & President (Principal Executive Officer) | |||||||||||||
By: | /s/ Michael R. McFerran | |||||||||||||
Name: | Michael R. McFerran | Dated: February 25, 2021 | ||||||||||||
Title: | Chief Operating Officer & Chief Financial Officer (Principal Financial and Accounting Officer) | |||||||||||||
By: | /s/ David B. Kaplan | |||||||||||||
Name: | David B. Kaplan | Dated: February 25, 2021 | ||||||||||||
Title: | Director, Co-Founder & Co-Chairman of Private Equity Group | |||||||||||||
By: | /s/ Bennett Rosenthal | |||||||||||||
Name: | Bennett Rosenthal | Dated: February 25, 2021 | ||||||||||||
Title: | Director, Co-Founder & Co-Chairman of Private Equity Group | |||||||||||||
By: | /s/ R. Kipp deVeer | |||||||||||||
Name: | R. Kipp deVeer | Dated: February 25, 2021 | ||||||||||||
Title: | Director & Head of Credit Group | |||||||||||||
By: | /s/ Paul G. Joubert | |||||||||||||
Name: | Paul G. Joubert | Dated: February 25, 2021 | ||||||||||||
Title: | Director | |||||||||||||
By: | /s/ Michael Lynton | |||||||||||||
Name: | Michael Lynton | Dated: February 25, 2021 | ||||||||||||
Title: | Director | |||||||||||||
By: | /s/ Judy D. Olian | |||||||||||||
Name: | Dr. Judy D. Olian | Dated: February 25, 2021 | ||||||||||||
Title: | Director | |||||||||||||
By: | /s/ Antoinette Bush | |||||||||||||
Name: | Antoinette Bush | Dated: February 25, 2021 | ||||||||||||
Title: | Director |
Description of the Matter | At December 31, 2020, the carrying value of the Company’s investments totaled $1,683 million, primarily consisting of equity method private investment partnership interests - principal of $366 million and equity method - carried interest of $1,146 million. As discussed further in Note 2. Summary of Significant Accounting Policies to the consolidated financial statements, the underlying investments of the Company’s equity method investments (“underlying investments”) are reported at fair value as determined by management by applying the valuation techniques and using the significant unobservable inputs described therein. Auditing management’s determination of the fair value of the underlying investments that are valued using significant unobservable inputs is complex and involves a high degree of auditor subjectivity to address the higher estimation uncertainty. | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s investment valuation process for the underlying investments. This included management’s review controls over the assessment of the valuation techniques and significant unobservable inputs used to estimate the fair value of the underlying investments and management’s review of the completeness and accuracy of the data used in these estimates. Our audit procedures included, among others, evaluating, on a sample basis, the valuation techniques and significant unobservable inputs used by the Company in valuing the underlying investments and testing, on a sample basis, the mathematical accuracy of the related valuation models. For example, for a sample of underlying investments that were valued using the market approach, we performed procedures to evaluate the appropriateness of significant unobservable inputs such as the selected earnings before interest, taxes, depreciation and amortization multiples or revenue multiples that were derived from comparable companies. These procedures included assessing the appropriateness of management’s determination of the comparable companies, and, where applicable, comparing the selected multiples to market observed transactions of such companies. For a sample of underlying investments that were valued using the discounted cash flow valuation technique, we performed procedures to evaluate the appropriateness of significant unobservable inputs such as the selected discount rates and projections of future cash flows. These procedures included comparing the selected discount rates to market data and/or recalculating these discount rates using investee specific information, such as the cost of equity. In addition, these procedures included comparing future projections to the current performance and the historical growth rates of the investees as well as to the growth rates of publicly traded comparable companies. In some instances, with the involvement of our valuation specialists, we independently developed fair value estimates using investee specific and market information and compared our estimates to the fair value of the underlying investments. We searched for and evaluated information that corroborated or contradicted the significant unobservable inputs. We also evaluated subsequent events and transactions and considered whether they corroborated or contradicted the year-end valuations. |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 539,812 | $ | 138,384 | |||||||
Investments (includes accrued carried interest of $1,145,853 and $1,134,967 at December 31, 2020 and 2019, respectively) | 1,682,759 | 1,663,664 | |||||||||
Due from affiliates | 405,887 | 267,130 | |||||||||
Other assets | 812,419 | 342,262 | |||||||||
Right-of-use operating lease assets | 154,742 | 143,406 | |||||||||
Assets of Consolidated Funds: | |||||||||||
Cash and cash equivalents | 522,377 | 606,321 | |||||||||
Investments, at fair value | 10,877,097 | 8,727,947 | |||||||||
Due from affiliates | 17,172 | 6,192 | |||||||||
Receivable for securities sold | 121,225 | 88,809 | |||||||||
Other assets | 35,502 | 30,081 | |||||||||
Total assets | $ | 15,168,992 | $ | 12,014,196 | |||||||
Liabilities | |||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 115,289 | $ | 88,173 | |||||||
Accrued compensation | 103,010 | 37,795 | |||||||||
Due to affiliates | 100,186 | 71,445 | |||||||||
Performance related compensation payable | 813,378 | 829,764 | |||||||||
Debt obligations | 642,998 | 316,609 | |||||||||
Operating lease liabilities | 180,236 | 168,817 | |||||||||
Liabilities of Consolidated Funds: | |||||||||||
Accounts payable, accrued expenses and other liabilities | 46,824 | 61,857 | |||||||||
Payable for securities purchased | 514,946 | 500,146 | |||||||||
CLO loan obligations, at fair value | 9,958,076 | 7,973,748 | |||||||||
Fund borrowings | 121,909 | 107,244 | |||||||||
Total liabilities | 12,596,852 | 10,155,598 | |||||||||
Commitments and contingencies | 0 | 0 | |||||||||
Redeemable interest in Ares Operating Group entities | 100,366 | 0 | |||||||||
Non-controlling interests in Consolidated Funds | 539,720 | 618,020 | |||||||||
Non-controlling interests in Ares Operating Group entities | 738,369 | 472,288 | |||||||||
Stockholders' Equity | |||||||||||
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (12,400,000 shares issued and outstanding at December 31, 2020 and 2019, respectively) | 298,761 | 298,761 | |||||||||
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (147,182,562 shares and 115,242,028 shares issued and outstanding at December 31, 2020 and 2019, respectively) | 1,472 | 1,152 | |||||||||
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding at December 31, 2020 and 2019) | 0 | 0 | |||||||||
Class C common stock, $0.01 par value, 499,999,000 shares authorized (112,447,618 shares and 1 share issued and outstanding at December 31, 2020 and 2019, respectively) | 1,124 | 0 | |||||||||
Additional paid-in-capital | 1,043,669 | 525,244 | |||||||||
Retained earnings | (151,824) | (50,820) | |||||||||
Accumulated other comprehensive income (loss), net of tax | 483 | (6,047) | |||||||||
Total stockholders' equity | 1,193,685 | 768,290 | |||||||||
Total equity | 2,471,774 | 1,858,598 | |||||||||
Total liabilities, redeemable interest, non-controlling interests and equity | $ | 15,168,992 | $ | 12,014,196 |
Year ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $184,141, $164,396 and $128,805 for the years ended December 31, 2020, 2019 and 2018, respectively) | $ | 1,150,608 | $ | 979,417 | $ | 802,502 | |||||||||||||||||||||||
Carried interest allocation | 505,608 | 621,872 | 42,410 | ||||||||||||||||||||||||||
Incentive fees | 37,902 | 69,197 | 63,380 | ||||||||||||||||||||||||||
Principal investment income (loss) | 28,552 | 56,555 | (1,455) | ||||||||||||||||||||||||||
Administrative, transaction and other fees | 41,376 | 38,397 | 51,624 | ||||||||||||||||||||||||||
Total revenues | 1,764,046 | 1,765,438 | 958,461 | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Compensation and benefits | 767,252 | 653,352 | 570,380 | ||||||||||||||||||||||||||
Performance related compensation | 404,116 | 497,181 | 30,254 | ||||||||||||||||||||||||||
General, administrative and other expenses | 258,999 | 270,219 | 215,964 | ||||||||||||||||||||||||||
Expenses of Consolidated Funds | 20,119 | 42,045 | 53,764 | ||||||||||||||||||||||||||
Total expenses | 1,450,486 | 1,462,797 | 870,362 | ||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (9,008) | 9,554 | (1,884) | ||||||||||||||||||||||||||
Interest and dividend income | 8,071 | 7,506 | 7,028 | ||||||||||||||||||||||||||
Interest expense | (24,908) | (19,671) | (21,448) | ||||||||||||||||||||||||||
Other income (expense), net | 11,291 | (7,840) | (851) | ||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | (96,864) | 15,136 | (1,583) | ||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 463,652 | 395,599 | 337,875 | ||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (286,316) | (277,745) | (222,895) | ||||||||||||||||||||||||||
Total other income | 65,918 | 122,539 | 96,242 | ||||||||||||||||||||||||||
Income before taxes | 379,478 | 425,180 | 184,341 | ||||||||||||||||||||||||||
Income tax expense | 54,993 | 52,376 | 32,202 | ||||||||||||||||||||||||||
Net income | 324,485 | 372,804 | 152,139 | ||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 28,085 | 39,704 | 20,512 | ||||||||||||||||||||||||||
Net income attributable to Ares Operating Group entities | 296,400 | 333,100 | 131,627 | ||||||||||||||||||||||||||
Less: Net loss attributable to redeemable interest in Ares Operating Group entities | (976) | 0 | 0 | ||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 145,234 | 184,216 | 74,607 | ||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation | 152,142 | 148,884 | 57,020 | ||||||||||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | 21,700 | 21,700 | ||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 130,442 | $ | 127,184 | $ | 35,320 | |||||||||||||||||||||||
Net income per share of Class A common stock: | |||||||||||||||||||||||||||||
Basic | $ | 0.89 | $ | 1.11 | $ | 0.30 | |||||||||||||||||||||||
Diluted | $ | 0.87 | $ | 1.06 | $ | 0.30 | |||||||||||||||||||||||
Weighted-average shares of Class A common stock: | |||||||||||||||||||||||||||||
Basic | 135,065,436 | 107,914,953 | 96,023,147 | ||||||||||||||||||||||||||
Diluted | 149,508,498 | 119,877,429 | 96,023,147 |
Year ended December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Net income | $ | 324,485 | $ | 372,804 | $ | 152,139 | ||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | 28,728 | 3,322 | (13,190) | |||||||||||||||||||||||||||||
Total comprehensive income | 353,213 | 376,126 | 138,949 | |||||||||||||||||||||||||||||
Less: Comprehensive income attributable to redeemable interest in Ares Operating Group entities | 562 | 0 | 0 | |||||||||||||||||||||||||||||
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds | 43,184 | 37,869 | 15,575 | |||||||||||||||||||||||||||||
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities | 150,795 | 186,896 | 70,670 | |||||||||||||||||||||||||||||
Comprehensive income attributable to Ares Management Corporation | $ | 158,672 | $ | 151,361 | $ | 52,704 |
Preferred Equity | Series A Preferred Stock | Shareholders' Equity | Class A Common Stock | Class C Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest in Ares Operating Group Entities | Non-Controlling Interest in Consolidated Funds | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2018 | $ | 298,761 | $ | 0 | $ | 268,238 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (4,208) | $ | 341,069 | $ | 533,821 | $ | 1,437,681 | |||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2018-02 | — | — | 1,202 | — | — | — | — | (1,202) | — | — | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | — | (26,712) | — | — | 9,140 | — | — | 16,361 | — | (1,211) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation of a new fund | — | — | — | — | — | — | — | — | — | 42,942 | 42,942 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | 106,283 | — | — | — | — | — | 3,128 | 71,009 | 180,420 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | (16,275) | (5,425) | (104,501) | — | — | — | (30,348) | — | (177,797) | (159,710) | (494,056) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 16,275 | 5,425 | 34,308 | — | — | — | 1,012 | — | 74,607 | 20,512 | 152,139 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | — | (3,114) | (3,937) | (4,937) | (11,988) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 36,245 | — | — | 2,820 | — | — | 49,349 | — | 88,414 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications resulting from conversion to a corporation | (298,761) | 298,761 | (315,063) | 1,016 | — | 314,047 | — | — | — | — | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 0 | 298,761 | 0 | 1,016 | 0 | 326,007 | (29,336) | (8,524) | 302,780 | 503,637 | 1,394,341 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relinquished with deconsolidation of funds | — | — | — | — | — | — | — | — | — | (55) | (55) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | — | 0 | 22 | — | (133,976) | — | — | 105,341 | — | (28,613) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of Class A common stock | — | — | — | (4) | — | (10,445) | — | — | — | — | (10,449) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | 0 | 70 | — | 206,635 | — | — | 1,876 | 172,851 | 381,432 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | 0 | (21,700) | 0 | — | — | — | (148,668) | — | (174,999) | (96,282) | (441,649) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 0 | 21,700 | 0 | — | — | — | 127,184 | — | 184,216 | 39,704 | 372,804 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | — | 2,477 | 2,680 | (1,835) | 3,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 0 | — | — | 46,560 | — | — | 50,394 | — | 96,954 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | 48 | — | 90,463 | — | — | — | — | 90,511 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 0 | 298,761 | 0 | 1,152 | 0 | 525,244 | (50,820) | (6,047) | 472,288 | 618,020 | 1,858,598 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation and deconsolidation of funds, net | — | — | — | — | — | — | — | — | — | (2,407) | (2,407) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | — | — | 73 | (28) | (328,419) | — | — | 229,229 | — | (99,145) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | 198 | 1,152 | 687,142 | — | — | — | — | 688,492 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | 481 | — | — | 44,799 | 132,430 | 177,710 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | 0 | (21,700) | — | — | — | (231,446) | — | (215,334) | (251,507) | (719,987) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 0 | 21,700 | 0 | — | — | — | 130,442 | — | 145,234 | 28,085 | 325,461 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | — | 6,530 | 5,561 | 15,099 | 27,190 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 0 | — | — | 66,394 | — | — | 56,592 | — | 122,986 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | 49 | — | 92,827 | — | — | — | — | 92,876 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 0 | $ | 298,761 | $ | 0 | $ | 1,472 | $ | 1,124 | $ | 1,043,669 | $ | (151,824) | $ | 483 | $ | 738,369 | $ | 539,720 | $ | 2,471,774 |
Year ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 324,485 | $ | 372,804 | $ | 152,139 | |||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||||||
Equity compensation expense | 122,986 | 97,691 | 89,724 | ||||||||||||||
Depreciation and amortization | 41,248 | 39,459 | 28,517 | ||||||||||||||
Net realized and unrealized (gains) losses on investments | (8,039) | (53,092) | 12,935 | ||||||||||||||
Other non-cash amounts | 0 | 0 | 10 | ||||||||||||||
Investments purchased | (90,851) | (278,798) | (248,460) | ||||||||||||||
Proceeds from sale of investments | 174,679 | 284,810 | 381,703 | ||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||
Net realized and unrealized (gains) losses on investments | 96,864 | (15,136) | 1,583 | ||||||||||||||
Other non-cash amounts | (34,297) | (8,383) | (4,519) | ||||||||||||||
Investments purchased | (6,615,732) | (5,216,931) | (4,919,118) | ||||||||||||||
Proceeds from sale of investments | 5,502,325 | 3,077,755 | 2,756,924 | ||||||||||||||
Cash flows due to changes in operating assets and liabilities: | |||||||||||||||||
Net performance income receivable | (24,351) | (103,962) | 29,578 | ||||||||||||||
Due to/from affiliates | (76,185) | (75,138) | 33,023 | ||||||||||||||
Other assets | (36,693) | 26,684 | (66,795) | ||||||||||||||
Accrued compensation and benefits | 54,539 | 7,650 | 114 | ||||||||||||||
Accounts payable, accrued expenses and other liabilities | 21,035 | 30,669 | 2,306 | ||||||||||||||
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds: | |||||||||||||||||
Change in cash and cash equivalents held at Consolidated Funds | 83,944 | (221,677) | 171,856 | ||||||||||||||
Net cash acquired (relinquished) with consolidation/deconsolidation of Consolidated Funds | 60,895 | (81,059) | 11,915 | ||||||||||||||
Change in other assets and receivables held at Consolidated Funds | (33,298) | (54,834) | 11,962 | ||||||||||||||
Change in other liabilities and payables held at Consolidated Funds | 10,787 | 88,467 | 137,545 | ||||||||||||||
Net cash used in operating activities | (425,659) | (2,083,021) | (1,417,058) | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | (15,942) | (16,796) | (18,419) | ||||||||||||||
Acquisitions, net of cash acquired | (120,822) | 0 | 0 | ||||||||||||||
Net cash used in investing activities | (136,764) | (16,796) | (18,419) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Net proceeds from issuance of Class A common stock | 383,154 | 206,705 | 105,333 | ||||||||||||||
Proceeds from credit facility | 790,000 | 335,000 | 680,000 | ||||||||||||||
Proceeds from senior notes | 399,084 | 0 | 0 | ||||||||||||||
Proceeds from term notes | 0 | 0 | 44,050 | ||||||||||||||
Repayments of credit facility | (860,000) | (500,000) | (655,000) | ||||||||||||||
Repayments of term notes | 0 | 0 | (206,089) | ||||||||||||||
Dividends and distributions | (446,780) | (323,667) | (312,646) | ||||||||||||||
Series A Preferred Stock dividends | (21,700) | (21,700) | (21,700) | ||||||||||||||
Repurchases of Class A common stock | 0 | (10,449) | 0 | ||||||||||||||
Stock option exercises | 92,877 | 90,511 | 950 | ||||||||||||||
Taxes paid related to net share settlement of equity awards | (95,368) | (33,554) | (18,014) | ||||||||||||||
Other financing activities | (1,531) | (3,212) | 3,128 | ||||||||||||||
Allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||
Contributions from non-controlling interests in Consolidated Funds | 132,430 | 172,851 | 71,009 | ||||||||||||||
Distributions to non-controlling interests in Consolidated Funds | (251,507) | (96,282) | (159,710) | ||||||||||||||
Borrowings under loan obligations by Consolidated Funds | 1,013,291 | 3,341,837 | 2,901,633 | ||||||||||||||
Repayments under loan obligations by Consolidated Funds | (190,055) | (1,035,710) | (1,027,649) | ||||||||||||||
Net cash provided by financing activities | 943,895 | 2,122,330 | 1,405,295 | ||||||||||||||
Effect of exchange rate changes | 19,956 | 5,624 | 21,500 | ||||||||||||||
Net change in cash and cash equivalents | 401,428 | 28,137 | (8,682) | ||||||||||||||
Cash and cash equivalents, beginning of period | 138,384 | 110,247 | 118,929 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 539,812 | $ | 138,384 | $ | 110,247 | |||||||||||
Supplemental disclosure of non-cash financing activities: | |||||||||||||||||
Issuance of Class A common stock in connection with acquisitions | $ | 305,338 | $ | 0 | $ | 0 | |||||||||||
Supplemental information of cash flow information: | |||||||||||||||||
Cash paid during the period for interest | $ | 257,132 | $ | 233,090 | $ | 184,951 | |||||||||||
Cash paid during the period for income taxes | $ | 38,174 | $ | 35,625 | $ | 27,482 |
Less than 1 year | 1 - 3 years | 4 - 5 years | Thereafter | Total | ||||||||||||||||||||||||||||
The Company: | ||||||||||||||||||||||||||||||||
Operating lease obligations(1) | $ | 35,571 | $ | 73,733 | $ | 63,402 | $ | 38,712 | $ | 211,418 | ||||||||||||||||||||||
Debt obligations payable(2) | — | — | 247,285 | 395,713 | 642,998 | |||||||||||||||||||||||||||
Capital lease obligations | 519 | 644 | 163 | — | 1,326 | |||||||||||||||||||||||||||
Interest obligations on debt(3) | 27,603 | 55,206 | 41,726 | 58,500 | 183,035 | |||||||||||||||||||||||||||
Capital commitments(4) | 784,221 | — | — | — | 784,221 | |||||||||||||||||||||||||||
Subtotal | 847,914 | 129,583 | 352,576 | 492,925 | 1,822,998 | |||||||||||||||||||||||||||
Consolidated Funds: | ||||||||||||||||||||||||||||||||
Debt obligations payable | 104,000 | 17,909 | — | 10,427,759 | 10,549,668 | |||||||||||||||||||||||||||
Interest obligations on debt(3) | 188,510 | 374,568 | 374,767 | 958,844 | 1,896,689 | |||||||||||||||||||||||||||
Capital commitments of Consolidated Funds(4) | 15,599 | — | — | — | 15,599 | |||||||||||||||||||||||||||
Total | $ | 1,156,023 | $ | 522,060 | $ | 727,343 | $ | 11,879,528 | $ | 14,284,954 |
Report of Independent Registered Public Accounting Firm | ||
Consolidated Statements of Financial Condition as of December 31, 2020 and 2019 | ||
Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018 | ||
Consolidated Statements of Comprehensive Income for the years ended December 31, 2020, 2019 and 2018 | ||
Consolidated Statements of Changes in Equity for the years ended December 31, 2020, 2019 and 2018 | ||
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018 | ||
Notes to Consolidated Financial Statements |
Exhibit No. | Description | |||||||
Certificate of Incorporation of Ares Management Corporation (incorporated by reference to Exhibit 99.3 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018). | ||||||||
Bylaws of Ares Management Corporation (incorporated by reference to Exhibit 99.4 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018). | ||||||||
Description of Ares Management Corporation's Securities. | ||||||||
Indenture dated as of October 8, 2014 among Ares Finance Co. LLC, Ares Management, L.P., Ares Holdings Inc., Ares Domestic Holdings Inc., Ares Real Estate Holdings LLC, Ares Holdings L.P., Ares Domestic Holdings L.P., Ares Investments L.P., Ares Real Estate Holdings L.P., Ares Management LLC, Ares Investments Holdings LLC and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on October 8, 2014). | ||||||||
First Supplemental Indenture dated as of October 8, 2014 among Ares Finance Co. LLC, Ares Management, L.P., Ares Holdings Inc., Ares Domestic Holdings Inc., Ares Real Estate Holdings LLC, Ares Holdings L.P., Ares Domestic Holdings L.P., Ares Investments L.P., Ares Real Estate Holdings L.P., Ares Management LLC, Ares Investments Holdings LLC and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on October 8, 2014). | ||||||||
First Amendment, dated as of August 7, 2015, to the First Supplemental Indenture, dated October 8, 2014, to the indenture, dated October 8, 2014, among Ares Finance Co. LLC, the guarantors party thereto and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on August 7, 2015). | ||||||||
Form of 4.000% Senior Note due 2024 (incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on October 8, 2014). | ||||||||
Form of 7.00% Series A Preferred Stock Certificate (incorporated by reference to Exhibit 99.5 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018). | ||||||||
Indenture dated as of June 15, 2020 among Ares Finance Co. II LLC, Ares Holdings L.P., Ares Investments L.P., Ares Management LLC, Ares Investments Holdings LLC, Ares Finance Co. LLC and Ares Offshore Holdings L.P. and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on June 15, 2020). | ||||||||
First Supplemental Indenture dated as of June 15, 2020 among Ares Finance Co. II LLC, Ares Holdings L.P., Ares Investments L.P., Ares Management LLC, Ares Investments Holdings LLC, Ares Finance Co. LLC and Ares Offshore Holdings L.P. and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on June 15, 2020). | ||||||||
Form of 3.250% Senior Note due 2030 (incorporated by reference to Exhibit 4.3 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on June 15, 2020). |
Exhibit No. | Description | |||||||
Third Amended and Restated Limited Partnership Agreement of Ares Holdings L.P., dated November 26, 2018. | ||||||||
Fourth Amended and Restated Limited Partnership Agreement of Ares Offshore Holdings L.P. dated November 26, 2018. | ||||||||
Third Amended and Restated Limited Partnership Agreement of Ares Investments L.P. dated November 26, 2018. | ||||||||
Investor Rights Agreement. | ||||||||
Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Fourth Amended and Restated Exchange Agreement, dated as of November 26, 2018. | ||||||||
Second Amended and Restated Tax Receivable Agreement. | ||||||||
Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.10 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-194919) filed with the SEC on April 28, 2014). | ||||||||
Amendment No. 1, dated as of July 15, 2014, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10‑Q (File No. 001-36429) filed with the SEC on November 12, 2014). | ||||||||
Amendment No. 2, dated as of September 24, 2014, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10‑Q (File No. 001-36429) filed with the SEC on November 12, 2014). | ||||||||
Amendment No. 3, dated as of July 23, 2015, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8‑K (File No. 001-36429) filed with the SEC on July 28, 2015). | ||||||||
Amendment No. 4, dated as of August 5, 2015, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8‑K (File No. 001-36429) filed with the SEC on August 7, 2015). | ||||||||
Amendment No. 5, dated as of December 16, 2015, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8‑K (File No. 001-36429) filed with the SEC on December 21, 2015). | ||||||||
Amendment No. 6, dated as of May 23, 2016, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on May 26, 2016). | ||||||||
Amendment No. 7, dated as of February 24, 2017, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., Ares Investments L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.15 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 001-36429, filed with the SEC on February 27, 2017). | ||||||||
Amendment No. 8, dated as of March 21, 2019, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., Ares Investments L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on March 26, 2019). |
Exhibit No. | Description | |||||||
Amendment No. 9, dated as of March 30, 2020, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., Ares Investments L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on April 1, 2020). | ||||||||
Restated Investment Advisory and Management Agreement between Ares Capital Corporation and Ares Capital Management LLC, dated as of June 6, 2011 (incorporated by reference to Exhibit 10.11 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-194919) filed with the SEC on April 16, 2014). | ||||||||
Second Amended and Restated Investment Advisory and Management Agreement, dated June 6, 2019, between Ares Capital Corporation and Ares Capital Management LLC (incorporated by reference to exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-36429) filed with the SEC on November 6, 2019). | ||||||||
Form of Indemnification Agreement. # | ||||||||
Form of Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Form of Option Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Form of Phantom Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Form of ARCC Incentive Fee Award (incorporated by reference to Exhibit 10.16 to the Registrant’s Registration Statement on Form S‑1/A (File No. 333-194919) filed with the SEC on April 11, 2014). | ||||||||
Form of Amended and Restated Limited Partnership Agreement of Carry Vehicles (incorporated by reference to Exhibit 10.28 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 (File No. 001-36429, filed with the SEC on February 29, 2016). | ||||||||
Form of Supplemental Award Agreement for Carried Interest (incorporated by reference to Exhibit 10.29 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 (File No. 001-36429, filed with the SEC on February 29, 2016). | ||||||||
Form of Annual Incentive Fee Award Letter (incorporated by reference to Exhibit 10.24 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 001-36429, filed with the SEC on February 27, 2017). | ||||||||
Form of Deferred Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Offer Letter for Michael R. McFerran, dated March 10, 2015 (incorporated by reference to Exhibit 10.26 to the Registrant’s Annual Report on Form 10-K (File No. 001-36429) filed with the SEC on March 20, 2015). # | ||||||||
Form of Director Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan (incorporated by reference to Exhibit 10.4 to the Registrant’s Registration Statement on Form S-8 POS (File No. 333-225271) filed with the SEC on November 26, 2018). # | ||||||||
Restricted Unit Agreement, dated as of July 31, 2018, by and between Michael J Arougheti and Ares Management, L.P. (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 001-36429) filed with the SEC on August 6, 2018). # | ||||||||
Stock Purchase Agreement, dated July 9, 2019, between Aspida Holdco, LLC and GBIG Holdings, Inc. (incorporated by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K (File 001-36429) filed with the SEC on July 9, 2019). | ||||||||
Share Purchase Agreement, dated March 27, 2020, between Sumitomo Mitsui Banking Corporation and Ares Management Corporation (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File 001-36429) filed with the SEC on March 30, 2020). | ||||||||
Investor Rights Agreement, dated March 31, 2020, by and between Sumitomo Mitsui Banking Corporation and Ares Management Corporation. | ||||||||
Form of Executive Officer Time-Based Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Form of Executive Officer Performance-Based Restricted Unit Agreement under the Second Amended & Restated 2014 Equity Incentive Plan. # | ||||||||
Subsidiaries of Ares Management Corporation. | ||||||||
Consent of Ernst and Young LLP. |
Exhibit No. | Description | |||||||
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a). | ||||||||
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a). | ||||||||
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350. | ||||||||
101.INS* | Inline XBRL Instance Document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104* | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
ARES MANAGEMENT CORPORATION | |||||||||||
Dated: February 25, 2021 | By: | /s/ Michael J Arougheti | |||||||||
Name: | Michael J Arougheti | ||||||||||
Title: | Co-Founder, Chief Executive Officer & President (Principal Executive Officer) |
By: | /s/ Antony P. Ressler | |||||||||||||
Name: | Antony P. Ressler | Dated: February 25, 2021 | ||||||||||||
Title: | Executive Chairman & Co-Founder | |||||||||||||
By: | /s/ Michael J Arougheti | |||||||||||||
Name: | Michael J Arougheti | Dated: February 25, 2021 | ||||||||||||
Title: | Director, Co-Founder, Chief Executive Officer & President (Principal Executive Officer) | |||||||||||||
By: | /s/ Michael R. McFerran | |||||||||||||
Name: | Michael R. McFerran | Dated: February 25, 2021 | ||||||||||||
Title: | Chief Operating Officer & Chief Financial Officer (Principal Financial and Accounting Officer) | |||||||||||||
By: | /s/ David B. Kaplan | |||||||||||||
Name: | David B. Kaplan | Dated: February 25, 2021 | ||||||||||||
Title: | Director, Co-Founder & Co-Chairman of Private Equity Group | |||||||||||||
By: | /s/ Bennett Rosenthal | |||||||||||||
Name: | Bennett Rosenthal | Dated: February 25, 2021 | ||||||||||||
Title: | Director, Co-Founder & Co-Chairman of Private Equity Group | |||||||||||||
By: | /s/ R. Kipp deVeer | |||||||||||||
Name: | R. Kipp deVeer | Dated: February 25, 2021 | ||||||||||||
Title: | Director & Head of Credit Group | |||||||||||||
By: | /s/ Paul G. Joubert | |||||||||||||
Name: | Paul G. Joubert | Dated: February 25, 2021 | ||||||||||||
Title: | Director | |||||||||||||
By: | /s/ Michael Lynton | |||||||||||||
Name: | Michael Lynton | Dated: February 25, 2021 | ||||||||||||
Title: | Director | |||||||||||||
By: | /s/ Judy D. Olian | |||||||||||||
Name: | Dr. Judy D. Olian | Dated: February 25, 2021 | ||||||||||||
Title: | Director | |||||||||||||
By: | /s/ Antoinette Bush | |||||||||||||
Name: | Antoinette Bush | Dated: February 25, 2021 | ||||||||||||
Title: | Director |
Description of the Matter | At December 31, 2020, the carrying value of the Company’s investments totaled $1,683 million, primarily consisting of equity method private investment partnership interests - principal of $366 million and equity method - carried interest of $1,146 million. As discussed further in Note 2. Summary of Significant Accounting Policies to the consolidated financial statements, the underlying investments of the Company’s equity method investments (“underlying investments”) are reported at fair value as determined by management by applying the valuation techniques and using the significant unobservable inputs described therein. Auditing management’s determination of the fair value of the underlying investments that are valued using significant unobservable inputs is complex and involves a high degree of auditor subjectivity to address the higher estimation uncertainty. | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s investment valuation process for the underlying investments. This included management’s review controls over the assessment of the valuation techniques and significant unobservable inputs used to estimate the fair value of the underlying investments and management’s review of the completeness and accuracy of the data used in these estimates. Our audit procedures included, among others, evaluating, on a sample basis, the valuation techniques and significant unobservable inputs used by the Company in valuing the underlying investments and testing, on a sample basis, the mathematical accuracy of the related valuation models. For example, for a sample of underlying investments that were valued using the market approach, we performed procedures to evaluate the appropriateness of significant unobservable inputs such as the selected earnings before interest, taxes, depreciation and amortization multiples or revenue multiples that were derived from comparable companies. These procedures included assessing the appropriateness of management’s determination of the comparable companies, and, where applicable, comparing the selected multiples to market observed transactions of such companies. For a sample of underlying investments that were valued using the discounted cash flow valuation technique, we performed procedures to evaluate the appropriateness of significant unobservable inputs such as the selected discount rates and projections of future cash flows. These procedures included comparing the selected discount rates to market data and/or recalculating these discount rates using investee specific information, such as the cost of equity. In addition, these procedures included comparing future projections to the current performance and the historical growth rates of the investees as well as to the growth rates of publicly traded comparable companies. In some instances, with the involvement of our valuation specialists, we independently developed fair value estimates using investee specific and market information and compared our estimates to the fair value of the underlying investments. We searched for and evaluated information that corroborated or contradicted the significant unobservable inputs. We also evaluated subsequent events and transactions and considered whether they corroborated or contradicted the year-end valuations. |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 539,812 | $ | 138,384 | |||||||
Investments (includes accrued carried interest of $1,145,853 and $1,134,967 at December 31, 2020 and 2019, respectively) | 1,682,759 | 1,663,664 | |||||||||
Due from affiliates | 405,887 | 267,130 | |||||||||
Other assets | 812,419 | 342,262 | |||||||||
Right-of-use operating lease assets | 154,742 | 143,406 | |||||||||
Assets of Consolidated Funds: | |||||||||||
Cash and cash equivalents | 522,377 | 606,321 | |||||||||
Investments, at fair value | 10,877,097 | 8,727,947 | |||||||||
Due from affiliates | 17,172 | 6,192 | |||||||||
Receivable for securities sold | 121,225 | 88,809 | |||||||||
Other assets | 35,502 | 30,081 | |||||||||
Total assets | $ | 15,168,992 | $ | 12,014,196 | |||||||
Liabilities | |||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 115,289 | $ | 88,173 | |||||||
Accrued compensation | 103,010 | 37,795 | |||||||||
Due to affiliates | 100,186 | 71,445 | |||||||||
Performance related compensation payable | 813,378 | 829,764 | |||||||||
Debt obligations | 642,998 | 316,609 | |||||||||
Operating lease liabilities | 180,236 | 168,817 | |||||||||
Liabilities of Consolidated Funds: | |||||||||||
Accounts payable, accrued expenses and other liabilities | 46,824 | 61,857 | |||||||||
Payable for securities purchased | 514,946 | 500,146 | |||||||||
CLO loan obligations, at fair value | 9,958,076 | 7,973,748 | |||||||||
Fund borrowings | 121,909 | 107,244 | |||||||||
Total liabilities | 12,596,852 | 10,155,598 | |||||||||
Commitments and contingencies | 0 | 0 | |||||||||
Redeemable interest in Ares Operating Group entities | 100,366 | 0 | |||||||||
Non-controlling interests in Consolidated Funds | 539,720 | 618,020 | |||||||||
Non-controlling interests in Ares Operating Group entities | 738,369 | 472,288 | |||||||||
Stockholders' Equity | |||||||||||
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (12,400,000 shares issued and outstanding at December 31, 2020 and 2019, respectively) | 298,761 | 298,761 | |||||||||
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (147,182,562 shares and 115,242,028 shares issued and outstanding at December 31, 2020 and 2019, respectively) | 1,472 | 1,152 | |||||||||
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding at December 31, 2020 and 2019) | 0 | 0 | |||||||||
Class C common stock, $0.01 par value, 499,999,000 shares authorized (112,447,618 shares and 1 share issued and outstanding at December 31, 2020 and 2019, respectively) | 1,124 | 0 | |||||||||
Additional paid-in-capital | 1,043,669 | 525,244 | |||||||||
Retained earnings | (151,824) | (50,820) | |||||||||
Accumulated other comprehensive income (loss), net of tax | 483 | (6,047) | |||||||||
Total stockholders' equity | 1,193,685 | 768,290 | |||||||||
Total equity | 2,471,774 | 1,858,598 | |||||||||
Total liabilities, redeemable interest, non-controlling interests and equity | $ | 15,168,992 | $ | 12,014,196 |
Year ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $184,141, $164,396 and $128,805 for the years ended December 31, 2020, 2019 and 2018, respectively) | $ | 1,150,608 | $ | 979,417 | $ | 802,502 | |||||||||||||||||||||||
Carried interest allocation | 505,608 | 621,872 | 42,410 | ||||||||||||||||||||||||||
Incentive fees | 37,902 | 69,197 | 63,380 | ||||||||||||||||||||||||||
Principal investment income (loss) | 28,552 | 56,555 | (1,455) | ||||||||||||||||||||||||||
Administrative, transaction and other fees | 41,376 | 38,397 | 51,624 | ||||||||||||||||||||||||||
Total revenues | 1,764,046 | 1,765,438 | 958,461 | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Compensation and benefits | 767,252 | 653,352 | 570,380 | ||||||||||||||||||||||||||
Performance related compensation | 404,116 | 497,181 | 30,254 | ||||||||||||||||||||||||||
General, administrative and other expenses | 258,999 | 270,219 | 215,964 | ||||||||||||||||||||||||||
Expenses of Consolidated Funds | 20,119 | 42,045 | 53,764 | ||||||||||||||||||||||||||
Total expenses | 1,450,486 | 1,462,797 | 870,362 | ||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (9,008) | 9,554 | (1,884) | ||||||||||||||||||||||||||
Interest and dividend income | 8,071 | 7,506 | 7,028 | ||||||||||||||||||||||||||
Interest expense | (24,908) | (19,671) | (21,448) | ||||||||||||||||||||||||||
Other income (expense), net | 11,291 | (7,840) | (851) | ||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | (96,864) | 15,136 | (1,583) | ||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 463,652 | 395,599 | 337,875 | ||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (286,316) | (277,745) | (222,895) | ||||||||||||||||||||||||||
Total other income | 65,918 | 122,539 | 96,242 | ||||||||||||||||||||||||||
Income before taxes | 379,478 | 425,180 | 184,341 | ||||||||||||||||||||||||||
Income tax expense | 54,993 | 52,376 | 32,202 | ||||||||||||||||||||||||||
Net income | 324,485 | 372,804 | 152,139 | ||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 28,085 | 39,704 | 20,512 | ||||||||||||||||||||||||||
Net income attributable to Ares Operating Group entities | 296,400 | 333,100 | 131,627 | ||||||||||||||||||||||||||
Less: Net loss attributable to redeemable interest in Ares Operating Group entities | (976) | 0 | 0 | ||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 145,234 | 184,216 | 74,607 | ||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation | 152,142 | 148,884 | 57,020 | ||||||||||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | 21,700 | 21,700 | ||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 130,442 | $ | 127,184 | $ | 35,320 | |||||||||||||||||||||||
Net income per share of Class A common stock: | |||||||||||||||||||||||||||||
Basic | $ | 0.89 | $ | 1.11 | $ | 0.30 | |||||||||||||||||||||||
Diluted | $ | 0.87 | $ | 1.06 | $ | 0.30 | |||||||||||||||||||||||
Weighted-average shares of Class A common stock: | |||||||||||||||||||||||||||||
Basic | 135,065,436 | 107,914,953 | 96,023,147 | ||||||||||||||||||||||||||
Diluted | 149,508,498 | 119,877,429 | 96,023,147 |
Year ended December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Net income | $ | 324,485 | $ | 372,804 | $ | 152,139 | ||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | 28,728 | 3,322 | (13,190) | |||||||||||||||||||||||||||||
Total comprehensive income | 353,213 | 376,126 | 138,949 | |||||||||||||||||||||||||||||
Less: Comprehensive income attributable to redeemable interest in Ares Operating Group entities | 562 | 0 | 0 | |||||||||||||||||||||||||||||
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds | 43,184 | 37,869 | 15,575 | |||||||||||||||||||||||||||||
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities | 150,795 | 186,896 | 70,670 | |||||||||||||||||||||||||||||
Comprehensive income attributable to Ares Management Corporation | $ | 158,672 | $ | 151,361 | $ | 52,704 |
Preferred Equity | Series A Preferred Stock | Shareholders' Equity | Class A Common Stock | Class C Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest in Ares Operating Group Entities | Non-Controlling Interest in Consolidated Funds | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2018 | $ | 298,761 | $ | 0 | $ | 268,238 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (4,208) | $ | 341,069 | $ | 533,821 | $ | 1,437,681 | |||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2018-02 | — | — | 1,202 | — | — | — | — | (1,202) | — | — | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | — | (26,712) | — | — | 9,140 | — | — | 16,361 | — | (1,211) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation of a new fund | — | — | — | — | — | — | — | — | — | 42,942 | 42,942 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | 106,283 | — | — | — | — | — | 3,128 | 71,009 | 180,420 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | (16,275) | (5,425) | (104,501) | — | — | — | (30,348) | — | (177,797) | (159,710) | (494,056) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 16,275 | 5,425 | 34,308 | — | — | — | 1,012 | — | 74,607 | 20,512 | 152,139 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | — | (3,114) | (3,937) | (4,937) | (11,988) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 36,245 | — | — | 2,820 | — | — | 49,349 | — | 88,414 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications resulting from conversion to a corporation | (298,761) | 298,761 | (315,063) | 1,016 | — | 314,047 | — | — | — | — | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 0 | 298,761 | 0 | 1,016 | 0 | 326,007 | (29,336) | (8,524) | 302,780 | 503,637 | 1,394,341 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relinquished with deconsolidation of funds | — | — | — | — | — | — | — | — | — | (55) | (55) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | — | 0 | 22 | — | (133,976) | — | — | 105,341 | — | (28,613) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of Class A common stock | — | — | — | (4) | — | (10,445) | — | — | — | — | (10,449) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | 0 | 70 | — | 206,635 | — | — | 1,876 | 172,851 | 381,432 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | 0 | (21,700) | 0 | — | — | — | (148,668) | — | (174,999) | (96,282) | (441,649) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 0 | 21,700 | 0 | — | — | — | 127,184 | — | 184,216 | 39,704 | 372,804 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | — | 2,477 | 2,680 | (1,835) | 3,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 0 | — | — | 46,560 | — | — | 50,394 | — | 96,954 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | 48 | — | 90,463 | — | — | — | — | 90,511 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 0 | 298,761 | 0 | 1,152 | 0 | 525,244 | (50,820) | (6,047) | 472,288 | 618,020 | 1,858,598 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation and deconsolidation of funds, net | — | — | — | — | — | — | — | — | — | (2,407) | (2,407) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | — | — | 73 | (28) | (328,419) | — | — | 229,229 | — | (99,145) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | 198 | 1,152 | 687,142 | — | — | — | — | 688,492 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | 481 | — | — | 44,799 | 132,430 | 177,710 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | 0 | (21,700) | — | — | — | (231,446) | — | (215,334) | (251,507) | (719,987) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 0 | 21,700 | 0 | — | — | — | 130,442 | — | 145,234 | 28,085 | 325,461 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | — | 6,530 | 5,561 | 15,099 | 27,190 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 0 | — | — | 66,394 | — | — | 56,592 | — | 122,986 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | 49 | — | 92,827 | — | — | — | — | 92,876 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 0 | $ | 298,761 | $ | 0 | $ | 1,472 | $ | 1,124 | $ | 1,043,669 | $ | (151,824) | $ | 483 | $ | 738,369 | $ | 539,720 | $ | 2,471,774 |
Year ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 324,485 | $ | 372,804 | $ | 152,139 | |||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||||||
Equity compensation expense | 122,986 | 97,691 | 89,724 | ||||||||||||||
Depreciation and amortization | 41,248 | 39,459 | 28,517 | ||||||||||||||
Net realized and unrealized (gains) losses on investments | (8,039) | (53,092) | 12,935 | ||||||||||||||
Other non-cash amounts | 0 | 0 | 10 | ||||||||||||||
Investments purchased | (90,851) | (278,798) | (248,460) | ||||||||||||||
Proceeds from sale of investments | 174,679 | 284,810 | 381,703 | ||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||
Net realized and unrealized (gains) losses on investments | 96,864 | (15,136) | 1,583 | ||||||||||||||
Other non-cash amounts | (34,297) | (8,383) | (4,519) | ||||||||||||||
Investments purchased | (6,615,732) | (5,216,931) | (4,919,118) | ||||||||||||||
Proceeds from sale of investments | 5,502,325 | 3,077,755 | 2,756,924 | ||||||||||||||
Cash flows due to changes in operating assets and liabilities: | |||||||||||||||||
Net performance income receivable | (24,351) | (103,962) | 29,578 | ||||||||||||||
Due to/from affiliates | (76,185) | (75,138) | 33,023 | ||||||||||||||
Other assets | (36,693) | 26,684 | (66,795) | ||||||||||||||
Accrued compensation and benefits | 54,539 | 7,650 | 114 | ||||||||||||||
Accounts payable, accrued expenses and other liabilities | 21,035 | 30,669 | 2,306 | ||||||||||||||
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds: | |||||||||||||||||
Change in cash and cash equivalents held at Consolidated Funds | 83,944 | (221,677) | 171,856 | ||||||||||||||
Net cash acquired (relinquished) with consolidation/deconsolidation of Consolidated Funds | 60,895 | (81,059) | 11,915 | ||||||||||||||
Change in other assets and receivables held at Consolidated Funds | (33,298) | (54,834) | 11,962 | ||||||||||||||
Change in other liabilities and payables held at Consolidated Funds | 10,787 | 88,467 | 137,545 | ||||||||||||||
Net cash used in operating activities | (425,659) | (2,083,021) | (1,417,058) | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | (15,942) | (16,796) | (18,419) | ||||||||||||||
Acquisitions, net of cash acquired | (120,822) | 0 | 0 | ||||||||||||||
Net cash used in investing activities | (136,764) | (16,796) | (18,419) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Net proceeds from issuance of Class A common stock | 383,154 | 206,705 | 105,333 | ||||||||||||||
Proceeds from credit facility | 790,000 | 335,000 | 680,000 | ||||||||||||||
Proceeds from senior notes | 399,084 | 0 | 0 | ||||||||||||||
Proceeds from term notes | 0 | 0 | 44,050 | ||||||||||||||
Repayments of credit facility | (860,000) | (500,000) | (655,000) | ||||||||||||||
Repayments of term notes | 0 | 0 | (206,089) | ||||||||||||||
Dividends and distributions | (446,780) | (323,667) | (312,646) | ||||||||||||||
Series A Preferred Stock dividends | (21,700) | (21,700) | (21,700) | ||||||||||||||
Repurchases of Class A common stock | 0 | (10,449) | 0 | ||||||||||||||
Stock option exercises | 92,877 | 90,511 | 950 | ||||||||||||||
Taxes paid related to net share settlement of equity awards | (95,368) | (33,554) | (18,014) | ||||||||||||||
Other financing activities | (1,531) | (3,212) | 3,128 | ||||||||||||||
Allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||
Contributions from non-controlling interests in Consolidated Funds | 132,430 | 172,851 | 71,009 | ||||||||||||||
Distributions to non-controlling interests in Consolidated Funds | (251,507) | (96,282) | (159,710) | ||||||||||||||
Borrowings under loan obligations by Consolidated Funds | 1,013,291 | 3,341,837 | 2,901,633 | ||||||||||||||
Repayments under loan obligations by Consolidated Funds | (190,055) | (1,035,710) | (1,027,649) | ||||||||||||||
Net cash provided by financing activities | 943,895 | 2,122,330 | 1,405,295 | ||||||||||||||
Effect of exchange rate changes | 19,956 | 5,624 | 21,500 | ||||||||||||||
Net change in cash and cash equivalents | 401,428 | 28,137 | (8,682) | ||||||||||||||
Cash and cash equivalents, beginning of period | 138,384 | 110,247 | 118,929 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 539,812 | $ | 138,384 | $ | 110,247 | |||||||||||
Supplemental disclosure of non-cash financing activities: | |||||||||||||||||
Issuance of Class A common stock in connection with acquisitions | $ | 305,338 | $ | 0 | $ | 0 | |||||||||||
Supplemental information of cash flow information: | |||||||||||||||||
Cash paid during the period for interest | $ | 257,132 | $ | 233,090 | $ | 184,951 | |||||||||||
Cash paid during the period for income taxes | $ | 38,174 | $ | 35,625 | $ | 27,482 |
Weighted Average Amortization Period as of December 31, 2020 | As of December 31, | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
Management contracts | 5.4 years | $ | 210,857 | $ | 12,498 | ||||||||||||
Client relationships | 9.1 years | 25,141 | 6,341 | ||||||||||||||
Trade name | 9.4 years | 11,079 | 378 | ||||||||||||||
Intangible assets | 247,077 | 19,217 | |||||||||||||||
Foreign currency translation | 3,093 | 0 | |||||||||||||||
Total intangible assets | 250,170 | 19,217 | |||||||||||||||
Less: accumulated amortization | (28,082) | (11,242) | |||||||||||||||
Intangible assets, net | $ | 222,088 | $ | 7,975 |
Weighted Average Amortization Period as of | As of December 31, | ||||||||
December 31, 2018 | 2018 | 2017 | |||||||
Management contracts | 2.8 years | $ | 42,335 | $ | 67,306 | ||||
Client relationships | 9.5 years | 38,600 | 38,600 | ||||||
Trade name | 3.5 years | 3,200 | 3,200 | ||||||
Other | Less than 1 year | 342 | — | ||||||
Intangible assets, gross | 84,477 | 109,106 | |||||||
Less: accumulated amortization | (52,899 | ) | (68,641 | ) | |||||
Intangible assets, net | $ | 31,578 | $ | 40,465 |
Year | Amortization | ||||
2021 | $ | 42,424 | |||
2022 | 42,040 | ||||
2023 | 38,946 | ||||
2024 | 33,144 | ||||
2025 | 26,834 | ||||
Thereafter | 38,700 | ||||
Total | $ | 222,088 |
Year | Amortization | ||
2019 | $ | 4,602 | |
2020 | 4,071 | ||
2021 | 3,987 | ||
2022 | 3,192 | ||
2023 | 2,859 | ||
Thereafter | 12,867 | ||
Total | $ | 31,578 |
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total | |||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | 32,196 | $ | 58,600 | $ | 52,990 | $ | 0 | $ | 143,786 | |||||||||||||||||||
Foreign currency translation | 0 | 0 | 69 | 0 | 69 | ||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | 32,196 | $ | 58,600 | $ | 53,059 | $ | 0 | $ | 143,855 | |||||||||||||||||||
Acquisitions | 0 | 0 | 0 | 224,601 | 224,601 | ||||||||||||||||||||||||
Foreign currency translation | 0 | 0 | 61 | 2,530 | 2,591 | ||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | 32,196 | $ | 58,600 | $ | 53,120 | $ | 227,131 | $ | 371,047 |
Credit | Private Equity | Real Estate | Total | ||||||||||||
Balance as of December 31, 2016 | $ | 32,196 | $ | 58,600 | $ | 52,928 | $ | 143,724 | |||||||
Foreign currency translation | — | — | 171 | 171 | |||||||||||
Balance as of December 31, 2017 | 32,196 | 58,600 | 53,099 | 143,895 | |||||||||||
Foreign currency translation | — | — | (109 | ) | (109 | ) | |||||||||
Balance as of December 31, 2018 | $ | 32,196 | $ | 58,600 | $ | 52,990 | $ | 143,786 |
Percentage of total investments | |||||||||||||||||||||||
As of December 31, | As of December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Equity method investments: | |||||||||||||||||||||||
Equity method private investment partnership interests - principal (1) | $ | 366,471 | $ | 390,407 | 21.8 | % | 23.5 | % | |||||||||||||||
Equity method - carried interest (1) | 1,145,853 | 1,134,967 | 68.1 | 68.2 | |||||||||||||||||||
Equity method private investment partnership interests and other (held at fair value)(1) | 92,196 | 51,528 | 5.5 | 3.1 | |||||||||||||||||||
Equity method private investment partnership interests and other(1) | 23,883 | 16,536 | 1.4 | 1.0 | |||||||||||||||||||
Total equity method investments | 1,628,403 | 1,593,438 | 96.8 | 95.8 | |||||||||||||||||||
Collateralized loan obligations (2) | 31,766 | 22,265 | 1.9 | 1.3 | |||||||||||||||||||
Other fixed income | 21,583 | 46,918 | 1.3 | 2.8 | |||||||||||||||||||
Collateralized loan obligations and other fixed income, at fair value | 53,349 | 69,183 | 3.2 | 4.1 | |||||||||||||||||||
Common stock, at fair value | 1,007 | 1,043 | 0.1 | 0.1 | |||||||||||||||||||
Total investments | $ | 1,682,759 | $ | 1,663,664 | |||||||||||||||||||
Percentage of total investments | |||||||||||||
December 31, | December 31, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Private Investment Partnership Interests and Other: | |||||||||||||
Equity method private investment partnership interests - principal (1) | $ | 357,655 | $ | 340,354 | 27.0 | % | 19.7 | % | |||||
Equity method - carried interest (1) | 841,079 | 1,077,236 | 63.4 | % | 62.5 | % | |||||||
Equity method private investment partnership interests and other (held at fair value) | 46,449 | 80,767 | 3.5 | % | 4.7 | % | |||||||
Equity method private investment partnership interests and other | 18,846 | 29,420 | 1.4 | % | 1.7 | % | |||||||
Total private investment partnership interests and other | 1,264,029 | 1,527,777 | 95.3 | % | 88.6 | % | |||||||
Collateralized loan obligations | 20,824 | 195,158 | 1.6 | % | 11.3 | % | |||||||
Other fixed income | 40,000 | — | 3.0 | % | — | % | |||||||
Collateralized loan obligations and other fixed income, at fair value | 60,824 | 195,158 | 4.6 | % | 11.3 | % | |||||||
Common stock, at fair value | 1,284 | 1,636 | 0.1 | % | 0.1 | % | |||||||
Total investments | $ | 1,326,137 | $ | 1,724,571 |
As of December 31, 2020 and the Year then Ended | |||||||||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total | |||||||||||||||||||||||||
Statement of Financial Condition | |||||||||||||||||||||||||||||
Investments | $ | 12,406,944 | $ | 8,259,168 | $ | 5,320,711 | $ | 66,875 | $ | 26,053,698 | |||||||||||||||||||
Total assets | 13,416,800 | 8,591,385 | 5,780,472 | 70,998 | 27,859,655 | ||||||||||||||||||||||||
Total liabilities | 3,884,603 | 1,415,383 | 975,057 | 11,711 | 6,286,754 | ||||||||||||||||||||||||
Total equity | 9,532,197 | 7,176,002 | 4,805,415 | 59,287 | 21,572,901 | ||||||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||||||||||
Revenues | $ | 940,450 | $ | 263,335 | $ | 191,543 | $ | 2,656 | $ | 1,397,984 | |||||||||||||||||||
Expenses | (221,083) | (112,325) | (81,071) | (5,585) | (420,064) | ||||||||||||||||||||||||
Net realized and unrealized gains (losses) from investments | (210,881) | 1,218,362 | 11,923 | 2,324 | 1,021,728 | ||||||||||||||||||||||||
Income tax benefit (expense) | (1,693) | 57,935 | 346 | 0 | 56,588 | ||||||||||||||||||||||||
Net income (loss) | $ | 506,793 | $ | 1,427,307 | $ | 122,741 | $ | (605) | $ | 2,056,236 |
As of December 31, 2018 and the Year then Ended | |||||||||||||||
Credit | Private Equity | Real Estate | Total | ||||||||||||
Statement of Financial Condition | |||||||||||||||
Investments | $ | 8,210,094 | $ | 9,574,998 | $ | 3,337,076 | $ | 21,122,168 | |||||||
Total assets | 8,799,290 | 9,785,312 | 3,763,907 | 22,348,509 | |||||||||||
Total liabilities | 1,542,058 | 423,687 | 813,269 | 2,779,014 | |||||||||||
Total equity | 7,257,232 | 9,361,625 | 2,950,638 | 19,569,495 | |||||||||||
Statement of Operations | |||||||||||||||
Revenues | $ | 766,009 | $ | 264,376 | $ | 144,706 | $ | 1,175,091 | |||||||
Expenses | (189,432 | ) | (85,801 | ) | (96,353 | ) | (371,586 | ) | |||||||
Net realized and unrealized gain from investments | (67,477 | ) | (892,800 | ) | 417,974 | (542,303 | ) | ||||||||
Income tax expense | (2,526 | ) | (20,554 | ) | (4,075 | ) | (27,155 | ) | |||||||
Net income | $ | 506,574 | $ | (734,779 | ) | $ | 462,252 | $ | 234,047 |
As of December 31, 2019 and the Year then Ended | |||||||||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total | |||||||||||||||||||||||||
Statement of Financial Condition | |||||||||||||||||||||||||||||
Investments | $ | 10,937,224 | $ | 9,700,725 | $ | 4,939,245 | $ | 0 | $ | 25,577,194 | |||||||||||||||||||
Total assets | 11,625,699 | 10,077,149 | 5,314,908 | 0 | 27,017,756 | ||||||||||||||||||||||||
Total liabilities | 3,416,429 | 534,965 | 958,020 | 0 | 4,909,414 | ||||||||||||||||||||||||
Total equity | 8,209,270 | 9,542,184 | 4,356,888 | 0 | 22,108,342 | ||||||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||||||||||
Revenues | $ | 871,168 | $ | 325,529 | $ | 205,274 | $ | 0 | $ | 1,401,971 | |||||||||||||||||||
Expenses | (211,984) | (112,610) | (120,467) | 0 | (445,061) | ||||||||||||||||||||||||
Net realized and unrealized gains from investments | 5,040 | 1,674,002 | 382,383 | 0 | 2,061,425 | ||||||||||||||||||||||||
Income tax expense | (1,537) | (27,887) | (926) | 0 | (30,350) | ||||||||||||||||||||||||
Net income | $ | 662,687 | $ | 1,859,034 | $ | 466,264 | $ | 0 | $ | 2,987,985 |
As of December 31, 2017 and the Year then Ended | |||||||||||||||
Credit | Private Equity | Real Estate | Total | ||||||||||||
Statement of Financial Condition | |||||||||||||||
Investments | $ | 5,903,009 | $ | 9,849,829 | $ | 2,997,789 | $ | 18,750,627 | |||||||
Total assets | 6,435,364 | 10,033,790 | 3,174,149 | 19,643,303 | |||||||||||
Total liabilities | 665,680 | 519,349 | 202,174 | 1,387,203 | |||||||||||
Total equity | 5,769,684 | 9,514,441 | 2,971,975 | 18,256,100 | |||||||||||
Statement of Operations | |||||||||||||||
Revenues | $ | 603,682 | $ | 144,829 | $ | 154,967 | 903,478 | ||||||||
Expenses | (169,086 | ) | (91,803 | ) | (67,396 | ) | (328,285 | ) | |||||||
Net realized and unrealized gain from investments | 41,185 | 2,335,027 | 365,091 | 2,741,303 | |||||||||||
Income tax expense | (2,700 | ) | (31,359 | ) | (13,092 | ) | (47,151 | ) | |||||||
Net income | $ | 473,081 | $ | 2,356,694 | $ | 439,570 | $ | 3,269,345 |
For the Year Ended December 31, 2018 | |||||||||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total | |||||||||||||||||||||||||
Statement of Operations | |||||||||||||||||||||||||||||
Revenues | $ | 766,009 | $ | 264,376 | $ | 144,706 | $ | 0 | $ | 1,175,091 | |||||||||||||||||||
Expenses | (189,432) | (85,801) | (96,353) | 0 | (371,586) | ||||||||||||||||||||||||
Net realized and unrealized gains (losses) from investments | (67,477) | (892,800) | 417,974 | 0 | (542,303) | ||||||||||||||||||||||||
Income tax expense | (2,526) | (20,554) | (4,075) | 0 | (27,155) | ||||||||||||||||||||||||
Net income (loss) | $ | 506,574 | $ | (734,779) | $ | 462,252 | $ | 0 | $ | 234,047 |
For the Year Ended December 31, 2016 | |||||||||||||||
Credit | Private Equity | Real Estate | Total | ||||||||||||
Statement of Operations | |||||||||||||||
Revenues | $ | 416,228 | $ | 839,723 | $ | 114,937 | $ | 1,370,888 | |||||||
Expenses | (107,465 | ) | (134,573 | ) | (77,021 | ) | (319,059 | ) | |||||||
Net realized and unrealized gain from investments | 36,316 | 1,489,624 | 171,467 | 1,697,407 | |||||||||||
Income tax expense | (345 | ) | (27,587 | ) | (5,380 | ) | (33,312 | ) | |||||||
Net income | $ | 344,734 | $ | 2,167,187 | $ | 204,003 | $ | 2,715,924 |
Fair Value at | Percentage of total investments as of | ||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||
Bonds | $ | 397,494 | $ | 212,376 | 3.6 | % | 2.4% | ||||||||||||||||
Loans | 10,012,948 | 8,062,740 | 92.1 | 92.4 | |||||||||||||||||||
Investments in CLO warehouse | 0 | 44,435 | 0 | 0.5 | |||||||||||||||||||
Total fixed income investments | 10,410,442 | 8,319,551 | 95.7 | 95.3 | |||||||||||||||||||
Equity securities | 227,031 | 112,384 | 2.1 | 1.3 | |||||||||||||||||||
Partnership interests | 239,624 | 296,012 | 2.2 | 3.4 | |||||||||||||||||||
Total investments, at fair value | $ | 10,877,097 | $ | 8,727,947 |
Fair value at | Fair value as a percentage of total investments at | ||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
United States: | |||||||||||||
Fixed income securities: | |||||||||||||
Consumer discretionary | $ | 1,675,863 | $ | 1,295,732 | 22.0 | % | 23.2 | % | |||||
Consumer staples | 58,602 | 55,073 | 0.8 | % | 1.0 | % | |||||||
Energy | 198,631 | 176,836 | 2.6 | % | 3.2 | % | |||||||
Financials | 476,542 | 270,520 | 6.2 | % | 4.8 | % | |||||||
Healthcare, education and childcare | 707,881 | 449,888 | 9.2 | % | 8.1 | % | |||||||
Industrials | 396,767 | 370,926 | 5.2 | % | 6.6 | % | |||||||
Information technology | 196,586 | 167,089 | 2.6 | % | 3.0 | % | |||||||
Materials | 193,378 | 185,170 | 2.5 | % | 3.3 | % | |||||||
Telecommunication services | 665,576 | 399,617 | 8.7 | % | 7.2 | % | |||||||
Utilities | 80,233 | 77,102 | 1.0 | % | 1.4 | % | |||||||
Total fixed income securities (cost: $4,876,915 and $3,459,318 at December 31, 2018 and December 31, 2017, respectively) | 4,650,059 | 3,447,953 | 60.8 | % | 61.8 | % | |||||||
Equity securities: | |||||||||||||
Equity securities | 335 | 126 | 0.0 | % | 0.0 | % | |||||||
Total equity securities (cost: $354 and $2 at December 31, 2018 and December 31, 2017, respectively) | 335 | 126 | 0.0 | % | 0.0 | % | |||||||
Partnership interests: | |||||||||||||
Partnership interests | 271,447 | 232,332 | 3.5 | % | 4.2 | % | |||||||
Total partnership interests (cost: $210,000 and $190,000 at December 31, 2018 and December 31, 2017, respectively) | 271,447 | 232,332 | 3.5 | % | 4.2 | % |
Fair value at | Fair value as a percentage of total investments at | ||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Europe: | |||||||||||||
Fixed income securities: | |||||||||||||
Consumer discretionary | $ | 946,434 | $ | 604,608 | 12.3 | % | 10.8 | % | |||||
Energy | 16,840 | 2,413 | 0.2 | % | 0.0 | % | |||||||
Consumer staples | 105,464 | 76,361 | 1.4 | % | 1.4 | % | |||||||
Financials | 273,492 | 81,987 | 3.6 | % | 1.5 | % | |||||||
Healthcare, education and childcare | 384,350 | 209,569 | 5.0 | % | 3.8 | % | |||||||
Industrials | 124,469 | 145,706 | 1.6 | % | 2.6 | % | |||||||
Information technology | 32,632 | 21,307 | 0.4 | % | 0.4 | % | |||||||
Materials | 222,237 | 213,395 | 2.9 | % | 3.8 | % | |||||||
Telecommunication services | 297,101 | 182,543 | 3.9 | % | 3.3 | % | |||||||
Utilities | 14,453 | — | 0.2 | % | — | % | |||||||
Total fixed income securities (cost: $2,478,349 and $1,545,297 at December 31, 2018 and December 31, 2017, respectively) | 2,417,472 | 1,537,889 | 31.5 | % | 27.6 | % | |||||||
Equity securities: | |||||||||||||
Healthcare, education and childcare | 23,536 | 63,155 | 0.3 | % | 1.1 | % | |||||||
Total equity securities (cost: $56,154 and $67,198 at December 31, 2018 and December 31, 2017, respectively) | 23,536 | 63,155 | 0.3 | % | 1.1 | % | |||||||
Asia and other: | |||||||||||||
Fixed income securities: | |||||||||||||
Consumer discretionary | 1,686 | 2,008 | 0.0 | % | 0.0 | % | |||||||
Financials | 5,878 | 12,453 | 0.1 | % | 0.2 | % | |||||||
Telecommunication services | 19,753 | 21,848 | 0.3 | % | 0.4 | % | |||||||
Total fixed income securities (cost: $28,974 and $36,180 at December 31, 2018 and December 31, 2017, respectively) | 27,317 | 36,309 | 0.4 | % | 0.6 | % | |||||||
Equity securities: | |||||||||||||
Consumer discretionary | 41,820 | 59,630 | 0.5 | % | 1.1 | % | |||||||
Consumer staples | 41,979 | 45,098 | 0.5 | % | 0.8 | % | |||||||
Healthcare, education and childcare | 41,562 | 44,637 | 0.5 | % | 0.8 | % | |||||||
Industrials | 47,238 | 16,578 | 0.6 | % | 0.3 | % | |||||||
Total equity securities (cost: $122,418 and $122,418 at December 31, 2018 and December 31, 2017, respectively) | 172,599 | 165,943 | 2.1 | % | 3.0 | % |
Fair value at | Fair value as a percentage of total investments at | ||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Canada: | |||||||||||||
Fixed income securities: | |||||||||||||
Consumer discretionary | $ | 8,625 | $ | 6,757 | 0.1 | % | 0.1 | % | |||||
Consumer staples | 33,722 | 15,351 | 0.4 | % | 0.3 | % | |||||||
Energy | 503 | 33,715 | 0.0 | % | 0.6 | % | |||||||
Industrials | 46,307 | 18,785 | 0.6 | % | 0.3 | % | |||||||
Telecommunication services | 13,835 | 6,189 | 0.2 | % | 0.1 | % | |||||||
Total fixed income securities (cost: $109,084 and $80,201 at December 31, 2018 and December 31, 2017, respectively) | 102,992 | 80,797 | 1.3 | % | 1.4 | % | |||||||
Equity securities: | |||||||||||||
Consumer discretionary | — | 5,912 | — | % | 0.1 | % | |||||||
Total equity securities (cost: $0 and $17,202 at December 31, 2018 and December 31, 2017, respectively) | — | 5,912 | — | % | 0.1 | % | |||||||
Australia: | |||||||||||||
Fixed income securities: | |||||||||||||
Consumer discretionary | 5,973 | 10,863 | 0.1 | % | 0.2 | % | |||||||
Energy | 1,435 | 1,563 | 0.0 | % | 0.0 | % | |||||||
Total fixed income securities (cost: $8,249 and $12,714 at December 31, 2018 and December 31, 2017, respectively) | 7,408 | 12,426 | 0.1 | % | 0.2 | % | |||||||
Total fixed income securities | 7,205,248 | 5,115,374 | 94.1 | % | 91.6 | % | |||||||
Total equity securities | 196,470 | 235,136 | 2.4 | % | 4.2 | % | |||||||
Total partnership interests | 271,447 | 232,332 | 3.5 | % | 4.2 | % | |||||||
Total investments, at fair value | $ | 7,673,165 | $ | 5,582,842 |
Financial Instruments of the Company | Level I | Level II | Level III | Investments Measured at NAV | Total | |||||||||||||||||||||||||||
Assets, at fair value | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Collateralized loan obligations and other fixed income | $ | 0 | $ | 0 | $ | 53,349 | $ | — | $ | 53,349 | ||||||||||||||||||||||
Common stock and other equity securities | 0 | 1,007 | 88,412 | — | 89,419 | |||||||||||||||||||||||||||
Partnership interests | 0 | 0 | 2,575 | 1,209 | 3,784 | |||||||||||||||||||||||||||
Total investments, at fair value | 0 | 1,007 | 144,336 | 1,209 | 146,552 | |||||||||||||||||||||||||||
Derivatives-foreign exchange contracts | 0 | 1,440 | 0 | — | 1,440 | |||||||||||||||||||||||||||
Total assets, at fair value | $ | 0 | $ | 2,447 | $ | 144,336 | $ | 1,209 | $ | 147,992 | ||||||||||||||||||||||
Liabilities, at fair value | ||||||||||||||||||||||||||||||||
Derivatives-foreign exchange contracts | $ | 0 | $ | (1,565) | $ | 0 | $ | — | $ | (1,565) | ||||||||||||||||||||||
Total liabilities, at fair value | $ | 0 | $ | (1,565) | $ | 0 | $ | — | $ | (1,565) |
Financial Instruments of the Consolidated Funds | Level I | Level II | Level III | Investments Measured at NAV | Total | |||||||||||||||||||||||||||
Assets, at fair value | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Fixed income investments: | ||||||||||||||||||||||||||||||||
Bonds | $ | 0 | $ | 397,485 | $ | 9 | $ | — | $ | 397,494 | ||||||||||||||||||||||
Loans | 0 | 9,470,651 | 542,297 | — | 10,012,948 | |||||||||||||||||||||||||||
Investments in CLO warehouse | 0 | 0 | 0 | — | 0 | |||||||||||||||||||||||||||
Total fixed income investments | 0 | 9,868,136 | 542,306 | — | 10,410,442 | |||||||||||||||||||||||||||
Equity securities | 5,749 | 239 | 221,043 | — | 227,031 | |||||||||||||||||||||||||||
Partnership interests | 0 | 0 | 231,857 | 7,767 | 239,624 | |||||||||||||||||||||||||||
Total investments, at fair value | 5,749 | 9,868,375 | 995,206 | 7,767 | 10,877,097 | |||||||||||||||||||||||||||
Derivatives-asset swaps-other | 0 | 0 | 1,104 | — | 1,104 | |||||||||||||||||||||||||||
Total assets, at fair value | $ | 5,749 | $ | 9,868,375 | $ | 996,310 | $ | 7,767 | $ | 10,878,201 | ||||||||||||||||||||||
Liabilities, at fair value | ||||||||||||||||||||||||||||||||
Derivatives-asset swaps-other | $ | 0 | $ | 0 | $ | (44) | $ | — | $ | (44) | ||||||||||||||||||||||
Loan obligations of CLOs | 0 | (9,958,076) | 0 | — | (9,958,076) | |||||||||||||||||||||||||||
Total liabilities, at fair value | $ | 0 | $ | (9,958,076) | $ | (44) | $ | — | $ | (9,958,120) |
Financial Instruments of the Company | Level I | Level II | Level III | Investments Measured at NAV | Total | |||||||||||||||
Assets, at fair value | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Collateralized loan obligations and other fixed income | $ | — | $ | — | $ | 60,824 | $ | — | $ | 60,824 | ||||||||||
Common stock and other equity securities | 280 | 1,004 | 10,397 | — | 11,681 | |||||||||||||||
Partnership interests | — | — | 35,192 | 861 | 36,053 | |||||||||||||||
Total investments, at fair value | 280 | 1,004 | 106,413 | 861 | 108,558 | |||||||||||||||
Derivatives-foreign exchange contracts | — | 1,066 | — | — | 1,066 | |||||||||||||||
Total assets, at fair value | $ | 280 | $ | 2,070 | $ | 106,413 | $ | 861 | $ | 109,624 | ||||||||||
Liabilities, at fair value | ||||||||||||||||||||
Derivatives-foreign exchange contracts | $ | (869 | ) | $ | — | $ | — | $ | (869 | ) | ||||||||||
Total liabilities, at fair value | $ | — | $ | (869 | ) | $ | — | $ | — | $ | (869 | ) |
Financial Instruments of Consolidated Funds | Level I | Level II | Level III | Total | ||||||||||||
Assets, at fair value | ||||||||||||||||
Investments: | ||||||||||||||||
Fixed income investments: | ||||||||||||||||
Bonds | $ | — | $ | 316,850 | $ | 1,649 | $ | 318,499 | ||||||||
Loans | — | 6,340,440 | 546,309 | 6,886,749 | ||||||||||||
Total fixed income investments | — | 6,657,290 | 547,958 | 7,205,248 | ||||||||||||
Equity securities | 45,718 | — | 150,752 | 196,470 | ||||||||||||
Partnership interests | — | — | 271,447 | 271,447 | ||||||||||||
Total investments, at fair value | 45,718 | 6,657,290 | 970,157 | 7,673,165 | ||||||||||||
Derivatives: | ||||||||||||||||
Foreign exchange contracts | — | 1,881 | — | 1,881 | ||||||||||||
Asset swaps - other | — | — | 1,328 | 1,328 | ||||||||||||
Total derivative assets, at fair value | — | 1,881 | 1,328 | 3,209 | ||||||||||||
Total assets, at fair value | $ | 45,718 | $ | 6,659,171 | $ | 971,485 | $ | 7,676,374 | ||||||||
Liabilities, at fair value | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | (1,864 | ) | $ | — | $ | (1,864 | ) | ||||||
Asset swaps - other | — | — | (648 | ) | (648 | ) | ||||||||||
Loan obligations of CLOs | — | (6,678,091 | ) | — | (6,678,091 | ) | ||||||||||
Total liabilities, at fair value | $ | — | $ | (6,679,955 | ) | $ | (648 | ) | $ | (6,680,603 | ) |
Financial Instruments of the Company | Level I | Level II | Level III | Investments Measured at NAV | Total | |||||||||||||||||||||||||||
Assets, at fair value | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Collateralized loan obligations and other fixed income | $ | 0 | $ | 0 | $ | 69,183 | $ | — | $ | 69,183 | ||||||||||||||||||||||
Common stock and other equity securities | 0 | 1,043 | 14,704 | — | 15,747 | |||||||||||||||||||||||||||
Partnership interests | 0 | 0 | 35,192 | 1,632 | 36,824 | |||||||||||||||||||||||||||
Total investments, at fair value | 0 | 1,043 | 119,079 | 1,632 | 121,754 | |||||||||||||||||||||||||||
Derivatives-foreign exchange contracts | 0 | 4,023 | 0 | — | 4,023 | |||||||||||||||||||||||||||
Total assets, at fair value | $ | 0 | $ | 5,066 | $ | 119,079 | $ | 1,632 | $ | 125,777 | ||||||||||||||||||||||
Liabilities, at fair value | ||||||||||||||||||||||||||||||||
Derivatives-foreign exchange contracts | $ | 0 | $ | (113) | $ | 0 | $ | — | $ | (113) | ||||||||||||||||||||||
Total liabilities, at fair value | $ | 0 | $ | (113) | $ | 0 | $ | — | $ | (113) |
Financial Instruments of the Consolidated Funds | Level I | Level II | Level III | Investments Measured at NAV | Total | |||||||||||||||||||||||||||
Assets, at fair value | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Fixed income investments: | ||||||||||||||||||||||||||||||||
Bonds | $ | 0 | $ | 207,966 | $ | 4,410 | $ | — | $ | 212,376 | ||||||||||||||||||||||
Loans | 0 | 7,728,014 | 334,726 | — | 8,062,740 | |||||||||||||||||||||||||||
Investments in CLO warehouse | 0 | 44,435 | 0 | — | 44,435 | |||||||||||||||||||||||||||
Total fixed income investments | 0 | 7,980,415 | 339,136 | — | 8,319,551 | |||||||||||||||||||||||||||
Equity securities | 26,396 | 0 | 85,988 | — | 112,384 | |||||||||||||||||||||||||||
Partnership interests | 0 | 0 | 296,012 | 0 | 296,012 | |||||||||||||||||||||||||||
Total investments, at fair value | 26,396 | 7,980,415 | 721,136 | 0 | 8,727,947 | |||||||||||||||||||||||||||
Derivatives-foreign exchange contracts | 0 | 667 | 0 | — | 667 | |||||||||||||||||||||||||||
Total assets, at fair value | $ | 26,396 | $ | 7,981,082 | $ | 721,136 | $ | 0 | $ | 8,728,614 | ||||||||||||||||||||||
Liabilities, at fair value | ||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 0 | $ | (670) | $ | 0 | $ | — | $ | (670) | ||||||||||||||||||||||
Asset swaps-other | 0 | 0 | (4,106) | — | (4,106) | |||||||||||||||||||||||||||
Total derivative liabilities, at fair value | 0 | (670) | (4,106) | — | (4,776) | |||||||||||||||||||||||||||
Loan obligations of CLOs | 0 | (7,973,748) | 0 | — | (7,973,748) | |||||||||||||||||||||||||||
Total liabilities, at fair value | $ | 0 | $ | (7,974,418) | $ | (4,106) | $ | — | $ | (7,978,524) |
Financial Instruments of the Company | Level I | Level II | Level III | Investments Measured at NAV(1) | Total | |||||||||||||||
Assets, at fair value | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Fixed income - collateralized loan obligations | $ | — | $ | — | $ | 195,158 | $ | — | $ | 195,158 | ||||||||||
Equity securities - common stock | 520 | 1,116 | — | — | 1,636 | |||||||||||||||
Partnership interests | — | — | 44,769 | 35,998 | 80,767 | |||||||||||||||
Total investments, at fair value | 520 | 1,116 | 239,927 | 35,998 | 277,561 | |||||||||||||||
Derivatives-foreign exchange contracts | — | 498 | — | — | 498 | |||||||||||||||
Total assets, at fair value | $ | 520 | $ | 1,614 | $ | 239,927 | $ | 35,998 | $ | 278,059 | ||||||||||
Liabilities, at fair value | ||||||||||||||||||||
Derivatives-foreign exchange contracts | $ | — | $ | (2,639 | ) | $ | — | $ | — | $ | (2,639 | ) | ||||||||
Total liabilities, at fair value | $ | — | $ | (2,639 | ) | $ | — | $ | — | $ | (2,639 | ) |
Financial Instruments of Consolidated Funds | Level I | Level II | Level III | Total | ||||||||||||
Assets, at fair value | ||||||||||||||||
Investments: | ||||||||||||||||
Fixed income investments: | ||||||||||||||||
Bonds | $ | — | $ | 82,151 | $ | 7,041 | $ | 89,192 | ||||||||
Loans | — | 4,755,335 | 260,848 | 5,016,183 | ||||||||||||
Collateralized loan obligations | — | 10,000 | — | 10,000 | ||||||||||||
Total fixed income investments | — | 4,847,486 | 267,889 | 5,115,375 | ||||||||||||
Equity securities | 72,558 | — | 162,577 | 235,135 | ||||||||||||
Partnership interests | — | — | 232,332 | 232,332 | ||||||||||||
Total investments, at fair value | 72,558 | 4,847,486 | 662,798 | 5,582,842 | ||||||||||||
Derivatives: | ||||||||||||||||
Asset swaps - other | — | — | 1,366 | 1,366 | ||||||||||||
Total derivative assets, at fair value | — | — | 1,366 | 1,366 | ||||||||||||
Total assets, at fair value | $ | 72,558 | $ | 4,847,486 | $ | 664,164 | $ | 5,584,208 | ||||||||
Liabilities, at fair value | ||||||||||||||||
Asset swaps - other | $ | — | $ | — | $ | (462 | ) | $ | (462 | ) | ||||||
Loan obligations of CLOs | — | (4,963,194 | ) | — | (4,963,194 | ) | ||||||||||
Total liabilities, at fair value | $ | — | $ | (4,963,194 | ) | $ | (462 | ) | $ | (4,963,656 | ) |
Level III Assets | |||||||||||||||||||||||||||||
Level III Assets of the Company | Equity Securities | Fixed Income | Partnership Interests | Total | |||||||||||||||||||||||||
Balance, beginning of period | $ | 14,704 | $ | 69,183 | $ | 35,192 | $ | 119,079 | |||||||||||||||||||||
Transfer in due to changes in consolidation | 72,967 | 6,294 | 0 | 79,261 | |||||||||||||||||||||||||
Purchases(1) | 0 | 12,970 | 0 | 12,970 | |||||||||||||||||||||||||
Sales/settlements(3) | 0 | (37,058) | (32,430) | (69,488) | |||||||||||||||||||||||||
Realized and unrealized appreciation (depreciation), net | 741 | 1,960 | (187) | 2,514 | |||||||||||||||||||||||||
Balance, end of period | $ | 88,412 | $ | 53,349 | $ | 2,575 | $ | 144,336 | |||||||||||||||||||||
Change in net unrealized appreciation included in earnings related to financial assets still held at the reporting date | $ | 741 | $ | 4,227 | $ | 5,511 | $ | 10,479 |
Level III Assets | ||||||||||||||||
Level III Assets and Liabilities of the Company | Equity Securities | Fixed Income | Partnership Interests | Total | ||||||||||||
Balance, beginning of period | $ | — | $ | 195,158 | $ | 44,769 | $ | 239,927 | ||||||||
Transfer in | 250 | — | 250 | |||||||||||||
Purchases(1) | 1,000 | 92,797 | — | 93,797 | ||||||||||||
Sales/settlements(2) | — | (222,934 | ) | — | (222,934 | ) | ||||||||||
Deconsolidation of fund | — | 78 | — | 78 | ||||||||||||
Realized and unrealized appreciation (depreciation), net | 9,147 | $ | (4,275 | ) | (9,577 | ) | (4,705 | ) | ||||||||
Balance, end of period | $ | 10,397 | $ | 60,824 | $ | 35,192 | $ | 106,413 | ||||||||
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date | $ | 9,147 | $ | (3,923 | ) | $ | (9,577 | ) | $ | (4,353 | ) |
Level III Net Assets of Consolidated Funds | Equity Securities | Fixed Income | Partnership Interests | Derivatives, Net | Total | |||||||||||||||||||||||||||
Balance, beginning of period | $ | 85,988 | $ | 339,136 | $ | 296,012 | $ | (4,106) | $ | 717,030 | ||||||||||||||||||||||
Transfer in (out) due to changes in consolidation | (635) | 403,751 | 0 | 0 | 403,116 | |||||||||||||||||||||||||||
Transfer in | 32 | 127,633 | 0 | 0 | 127,665 | |||||||||||||||||||||||||||
Transfer out | 0 | (286,294) | 0 | 0 | (286,294) | |||||||||||||||||||||||||||
Purchases(1) | 186,881 | 340,475 | 66,000 | 0 | 593,356 | |||||||||||||||||||||||||||
Sales/settlements(2) | (10,997) | (370,966) | (141,025) | (911) | (523,899) | |||||||||||||||||||||||||||
Amortized discounts/premiums | 0 | 1,049 | 0 | 389 | 1,438 | |||||||||||||||||||||||||||
Realized and unrealized appreciation (depreciation), net | (40,226) | (12,478) | 10,870 | 5,688 | (36,146) | |||||||||||||||||||||||||||
Balance, end of period | $ | 221,043 | $ | 542,306 | $ | 231,857 | $ | 1,060 | $ | 996,266 | ||||||||||||||||||||||
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | (44,877) | $ | (5,736) | $ | 10,870 | $ | 3,595 | $ | (36,148) |
Level III Assets of Consolidated Funds | Equity Securities | Fixed Income | Partnership Interests | Derivatives, Net | Total | |||||||||||||||
Balance, beginning of period | $ | 162,577 | $ | 267,889 | $ | 232,332 | $ | 904 | $ | 663,702 | ||||||||||
Additions(3) | 506 | 46,829 | — | — | 47,335 | |||||||||||||||
Transfer in | — | 86,995 | — | — | 86,995 | |||||||||||||||
Transfer out | — | (45,647 | ) | — | — | (45,647 | ) | |||||||||||||
Purchases(1) | 203 | 492,142 | 25,000 | — | 517,345 | |||||||||||||||
Sales/settlements(2) | (21,141 | ) | (283,620 | ) | (5,000 | ) | (186 | ) | (309,947 | ) | ||||||||||
Amortized discounts/premiums | — | 380 | — | (140 | ) | 240 | ||||||||||||||
Realized and unrealized appreciation (depreciation), net | 8,607 | (17,010 | ) | 19,115 | 102 | 10,814 | ||||||||||||||
Balance, end of period | $ | 150,752 | $ | 547,958 | $ | 271,447 | $ | 680 | $ | 970,837 | ||||||||||
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | 8,686 | $ | (13,157 | ) | $ | 19,115 | $ | (57 | ) | $ | 14,587 |
Level III Assets | ||||||||||||||||||||||||||
Level III Assets of the Company | Equity Securities | Fixed Income | Partnership Interests | Total | ||||||||||||||||||||||
Balance, beginning of period | $ | 10,397 | $ | 60,824 | $ | 35,192 | $ | 106,413 | ||||||||||||||||||
Transfer in due to changes in consolidation | 0 | 10,021 | 0 | 10,021 | ||||||||||||||||||||||
Purchases(1) | 3,000 | 27,795 | 0 | 30,795 | ||||||||||||||||||||||
Sales/settlements(2) | 0 | (31,387) | 0 | (31,387) | ||||||||||||||||||||||
Realized and unrealized appreciation, net | 1,307 | 1,930 | 0 | 3,237 | ||||||||||||||||||||||
Balance, end of period | $ | 14,704 | $ | 69,183 | $ | 35,192 | $ | 119,079 | ||||||||||||||||||
Change in net unrealized appreciation included in earnings related to financial assets still held at the reporting date | $ | 1,307 | $ | 1,365 | $ | 0 | $ | 2,672 |
Level III Assets | Level III Liabilities | |||||||||||||||
Level III Assets and Liabilities of the Company | Fixed Income | Partnership Interests | Total | Contingent Considerations | ||||||||||||
Balance, beginning of period | $ | 89,111 | $ | 33,410 | $ | 122,521 | $ | 22,156 | ||||||||
Purchases(1) | 143,579 | 169 | 143,748 | — | ||||||||||||
Sales/settlements(2) | (39,047 | ) | — | (39,047 | ) | (1,000 | ) | |||||||||
Expired contingent considerations | — | — | — | (1,000 | ) | |||||||||||
Realized and unrealized appreciation (depreciation), net | 1,515 | 11,190 | 12,705 | (20,156 | ) | |||||||||||
Balance, end of period | $ | 195,158 | $ | 44,769 | $ | 239,927 | $ | — | ||||||||
Increase in unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date | $ | 2,752 | $ | 11,359 | $ | 14,111 | $ | — |
Level III Net Assets of Consolidated Funds | Equity Securities | Fixed Income | Partnership Interests | Derivatives, Net | Total | |||||||||||||||||||||||||||
Balance, beginning of period | $ | 150,752 | $ | 547,958 | $ | 271,447 | $ | 680 | $ | 970,837 | ||||||||||||||||||||||
Transfer out due to changes in consolidation | 0 | (184,919) | 0 | 0 | (184,919) | |||||||||||||||||||||||||||
Transfer in | 0 | 56,914 | 0 | 0 | 56,914 | |||||||||||||||||||||||||||
Transfer out | 0 | (187,925) | 0 | 0 | (187,925) | |||||||||||||||||||||||||||
Purchases(1) | 1,363 | 432,760 | 13,000 | 0 | 447,123 | |||||||||||||||||||||||||||
Sales/settlements(2) | (40,857) | (333,220) | (22,000) | (431) | (396,508) | |||||||||||||||||||||||||||
Amortized discounts/premiums | 0 | 361 | 0 | (129) | 232 | |||||||||||||||||||||||||||
Realized and unrealized appreciation (depreciation), net | (25,270) | 7,207 | 33,565 | (4,226) | 11,276 | |||||||||||||||||||||||||||
Balance, end of period | $ | 85,988 | $ | 339,136 | $ | 296,012 | $ | (4,106) | $ | 717,030 | ||||||||||||||||||||||
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | (24,690) | $ | 783 | $ | 33,565 | $ | (4,400) | $ | 5,258 |
Level III Assets of Consolidated Funds | Equity Securities | Fixed Income | Partnership Interests | Derivatives, Net | Total | |||||||||||||||
Balance, beginning of period | $ | 130,690 | $ | 242,253 | $ | 171,696 | $ | (2,708 | ) | $ | 541,931 | |||||||||
Transfer in | — | 45,526 | — | — | 45,526 | |||||||||||||||
Transfer out | (6,581 | ) | (100,643 | ) | — | — | (107,224 | ) | ||||||||||||
Purchases(1) | 6,691 | 240,723 | 88,000 | — | 335,414 | |||||||||||||||
Sales/settlements(2) | (3,701 | ) | (180,248 | ) | (45,000 | ) | (2,192 | ) | (231,141 | ) | ||||||||||
Additions(3) | 14,479 | 1,393 | 15,872 | |||||||||||||||||
Amortized discounts/premiums | — | 247 | — | 244 | 491 | |||||||||||||||
Realized and unrealized appreciation (depreciation), net | 35,478 | 5,552 | 17,636 | 4,167 | 62,833 | |||||||||||||||
Balance, end of period | $ | 162,577 | $ | 267,889 | $ | 232,332 | $ | 904 | $ | 663,702 | ||||||||||
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | 33,990 | $ | 31 | $ | 17,636 | $ | (705 | ) | $ | 50,952 |
Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | ||||||
Assets | |||||||||
Equity securities | $ | 10,397 | Transaction price(1) | N/A | N/A | ||||
Partnership interests | 35,192 | Discounted cash flow | Discount rate | 8.0% | |||||
Collateralized loan obligations | 20,824 | Broker quotes and/or 3rd party pricing services | N/A | N/A | |||||
Other fixed income | 40,000 | Other | N/A | N/A | |||||
Total | $ | 106,413 |
Level III Measurements of the Company | Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Equity securities | $ | 14,704 | Transaction price(1) | N/A | N/A | |||||||||||||||||||||
32,905 | Discounted Cash Flow | Discount Rates | 14.0% - 20.0% | |||||||||||||||||||||||
40,803 | Market Approach | Multiple of Book Value | 1.6x | |||||||||||||||||||||||
Partnership interests | 2,575 | Other | N/A | N/A | ||||||||||||||||||||||
Collateralized loan obligations | 31,766 | Broker quotes and/or 3rd party pricing services | N/A | N/A | ||||||||||||||||||||||
Other fixed income | 21,583 | Other | N/A | N/A | ||||||||||||||||||||||
Total | $ | 144,336 |
Level III Measurements of the Consolidated Funds | Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
$ | 438 | Market approach | EBITDA multiple(2) | 2.9x - 19.5x | 13.4x | |||||||||||||||||||||||||||
32,528 | Other | Net income multiple | 30.0x | 30.0x | ||||||||||||||||||||||||||||
Illiquidity discount | 25.0% | 25.0% | ||||||||||||||||||||||||||||||
33 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||||
188,044 | Transaction price(1) | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Partnership interest | 231,857 | Discounted cash flow | Discount rate | 23.8% | 23.8% | |||||||||||||||||||||||||||
Fixed income securities | ||||||||||||||||||||||||||||||||
384,419 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||||
6,605 | Market approach | EBITDA multiple(2) | 6.5x - 7.8x | 6.9x | ||||||||||||||||||||||||||||
122,962 | Income approach | Yield | 2.7% - 48.1% | 7.9% | ||||||||||||||||||||||||||||
28,320 | Other | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Derivative instruments | 1,104 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | |||||||||||||||||||||||||||
Total assets | $ | 996,310 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivatives instruments | $ | (44) | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||
Total liabilities | $ | (44) |
(1)Transaction price consists of securities recently purchased or restructured. The Company determined that there was no change to the valuation based on the underlying |
Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | ||||||
Assets | |||||||||
Partnership interests | $ | 44,769 | Other | N/A | N/A | ||||
Collateralized loan obligations | 195,158 | Broker quotes and/or 3rd party pricing services | N/A | N/A | |||||
Total | $ | 239,927 |
Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||
Assets | |||||||||||
Equity securities | |||||||||||
$ | 23,871 | Enterprise value market multiple analysis | EBITDA multiple(1) | 7.2x - 22.9x | 7.7x | ||||||
41,562 | Other | Net income multiple | 38.8x | 38.8x | |||||||
Illiquidity discount | 25% | 25% | |||||||||
271,447 | Discounted cash flow | Discount rate | 20.8% | 20.8% | |||||||
85,319 | Transaction price(2) | N/A | N/A | N/A | |||||||
Fixed income securities | |||||||||||
441,368 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | |||||||
106,590 | Income approach | Yield | 1.0% - 14.8% | 9.6% | |||||||
Derivative instruments | 1,328 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||
Total assets | $ | 971,485 | |||||||||
Liabilities | |||||||||||
Derivatives instruments | $ | (648 | ) | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||
Total liabilities | $ | (648 | ) |
Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||
Assets | |||||||||||
Equity securities | |||||||||||
$ | 63,155 | Enterprise value market multiple analysis | EBITDA multiple(1) | 2.7x | 2.7x | ||||||
61,215 | Other | Net income multiple Illiquidity discount | 27.0x - 36.2x 25.0% | 33.7x 25.0% | |||||||
126 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | |||||||
38,081 | Transaction price(2) | N/A | N/A | N/A | |||||||
Partnership interests | 232,332 | Discounted cash flow | Discount rate | 19.0% | 19.0% | ||||||
Fixed income securities | |||||||||||
222,413 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | |||||||
45,243 | Income approach | Yield | 10.8% - 22.5% | 12.1% | |||||||
233 | Market approach (comparable companies) | EBITDA multiple(1) | 6.5x | 6.5x | |||||||
Derivative instruments | 1,366 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||
Total assets | $ | 664,164 | |||||||||
Liabilities | |||||||||||
Derivatives instruments | $ | (462 | ) | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||
Total liabilities | $ | (462 | ) |
Level III Measurements of the Company | Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Equity securities | $ | 14,704 | Transaction price(1) | N/A | N/A | |||||||||||||||||||||
Partnership interests | 32,661 | Transaction price(1) | N/A | N/A | ||||||||||||||||||||||
2,531 | Other | N/A | N/A | |||||||||||||||||||||||
Collateralized loan obligations | 22,265 | Broker quotes and/or 3rd party pricing services | N/A | N/A | ||||||||||||||||||||||
Other fixed income | 46,918 | Other | N/A | N/A | ||||||||||||||||||||||
Total | $ | 119,079 |
Level III Measurements of the Consolidated Funds | Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
$ | 431 | Market approach | EBITDA multiple(2) | 8.2x - 21.3x | 16.1x | |||||||||||||||||||||||||||
40,745 | Other | Net income multiple | 36.2x | 36.2x | ||||||||||||||||||||||||||||
Illiquidity discount | 25.0% | 25.0% | ||||||||||||||||||||||||||||||
44,812 | Transaction price(1) | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Partnership interests | 296,012 | Discounted cash flow | Discount rate | 19.6% | 19.6% | |||||||||||||||||||||||||||
Fixed income securities | ||||||||||||||||||||||||||||||||
271,919 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||||
67,217 | Income approach | Yield | 4.8% - 14.3% | 9.7% | ||||||||||||||||||||||||||||
Total assets | $ | 721,136 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivatives instruments | $ | (4,106) | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||
Total liabilities | $ | (4,106) |
As of December 31, 2018 | As of December 31, 2017 | |||||||||||||||
Fair Value | Unfunded Commitments | Fair Value | Unfunded Commitments | |||||||||||||
Non Ares managed fund investments(1) | $ | 861 | $ | — | $ | 35,998 | $ | 16,492 | ||||||||
Totals | $ | 861 | $ | — | $ | 35,998 | $ | 16,492 |
As of December 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
The Company | Notional(1) | Fair Value | Notional(1) | Fair Value | Notional(1) | Fair Value | Notional(1) | Fair Value | ||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 30,040 | $ | 1,440 | $ | 39,362 | $ | 1,565 | $ | 67,930 | $ | 4,023 | $ | 10,846 | $ | 113 | ||||||||||||||||||||||||||||||||||
Total derivatives, at fair value(2) | $ | 30,040 | $ | 1,440 | $ | 39,362 | $ | 1,565 | $ | 67,930 | $ | 4,023 | $ | 10,846 | $ | 113 |
As of December 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Funds | Notional(1) | Fair Value | Notional(1) | Fair Value | Notional(1) | Fair Value | Notional(1) | Fair Value | ||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 667 | $ | 667 | $ | 667 | $ | 670 | ||||||||||||||||||||||||||||||||||
Asset swap - other | 7,600 | 1,104 | 540 | 44 | 8,863 | 0 | 1,223 | 4,106 | ||||||||||||||||||||||||||||||||||||||||||
Total derivatives, at fair value(3) | $ | 7,600 | $ | 1,104 | $ | 540 | $ | 44 | $ | 9,530 | $ | 667 | $ | 1,890 | $ | 4,776 |
As of December 31, 2018 | As of December 31, 2017 | |||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||
The Company | Notional(1) | Fair Value | Notional(1) | Fair Value | Notional(1) | Fair Value | Notional(1) | Fair Value | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 33,026 | $ | 1,066 | $ | 27,140 | $ | 869 | $ | 13,724 | $ | 498 | $ | 51,026 | $ | 2,639 | ||||||||||||||||
Total derivatives, at fair value | $ | 33,026 | $ | 1,066 | $ | 27,140 | $ | 869 | $ | 13,724 | $ | 498 | $ | 51,026 | $ | 2,639 |
As of December 31, 2018 | As of December 31, 2017 | |||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||
Consolidated Funds | Notional(1) | Fair Value | Notional(1) | Fair Value | Notional(1) | Fair Value | Notional(1) | Fair Value | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 1,881 | $ | 1,881 | $ | 1,881 | $ | 1,864 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Asset swap - other | 5,226 | 1,328 | 2,605 | 648 | 5,363 | 1,366 | 1,840 | 462 | ||||||||||||||||||||||||
Total derivatives, at fair value | 7,107 | 3,209 | 4,486 | 2,512 | 5,363 | 1,366 | 1,840 | 462 |
For the Year Ended December 31, | ||||||||||||||||||||
The Company | 2020 | 2019 | 2018 | |||||||||||||||||
Net realized gains (losses) on derivatives | ||||||||||||||||||||
Foreign currency forward contracts | 277 | 2,284 | (1,197) | |||||||||||||||||
Net realized gains (losses) on derivatives | $ | 277 | $ | 2,284 | $ | (1,197) | ||||||||||||||
Net change in unrealized appreciation (depreciation) on derivatives | ||||||||||||||||||||
Foreign currency forward contracts | (4,060) | 3,713 | 2,338 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on derivatives | $ | (4,060) | $ | 3,713 | $ | 2,338 |
For the Year Ended December 31, | ||||||||||||||||||||
Consolidated Funds | 2020 | 2019 | 2018 | |||||||||||||||||
Net realized gains (losses) on derivatives of Consolidated Funds | ||||||||||||||||||||
Foreign currency forward contracts | 5 | 8 | 96 | |||||||||||||||||
Asset swap - other | (687) | (1,197) | (795) | |||||||||||||||||
Net realized losses on derivatives of Consolidated Funds | $ | (682) | $ | (1,189) | $ | (699) | ||||||||||||||
Net change in unrealized appreciation (depreciation) on derivatives of Consolidated Funds | ||||||||||||||||||||
Foreign currency forward contracts | 3 | (20) | 15 | |||||||||||||||||
Asset swap - other | 5,171 | (4,751) | (183) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on derivatives of Consolidated Funds | $ | 5,174 | $ | (4,771) | $ | (168) |
For the Year Ended December 31, | ||||||||||||
The Company | 2018 | 2017 | 2016 | |||||||||
Net realized gain (loss) on derivatives | ||||||||||||
Interest rate contracts—Swaps | $ | — | $ | — | $ | (337 | ) | |||||
Foreign currency forward contracts | (1,197 | ) | (1,830 | ) | 1,783 | |||||||
Net realized gain (loss) on derivatives | $ | (1,197 | ) | $ | (1,830 | ) | $ | 1,446 | ||||
Net change in unrealized appreciation (depreciation) on derivatives | ||||||||||||
Interest rate contracts—Swaps | $ | — | $ | — | $ | 214 | ||||||
Foreign currency forward contracts | 2,338 | (5,299 | ) | 2,008 | ||||||||
Net change in unrealized appreciation (depreciation) on derivatives | $ | 2,338 | $ | (5,299 | ) | $ | 2,222 |
For the Year Ended December 31, | ||||||||||||
Consolidated Funds | 2018 | 2017 | 2016 | |||||||||
Net realized gain (loss) on derivatives of Consolidated Funds | ||||||||||||
Foreign currency forward contracts | $ | 96 | $ | (181 | ) | $ | (1,008 | ) | ||||
Asset swap - other | (795 | ) | 903 | (1,322 | ) | |||||||
Net realized gain (loss) on derivatives of Consolidated Funds | $ | (699 | ) | $ | 722 | $ | (2,330 | ) | ||||
Net change in unrealized appreciation (depreciation) on derivatives of Consolidated Funds | ||||||||||||
Equity contracts: Warrants(1) | $ | — | $ | — | $ | 26 | ||||||
Foreign currency forward contracts | 15 | (529 | ) | 900 | ||||||||
Asset swap - other | (183 | ) | 2,338 | 7,685 | ||||||||
Net change in unrealized appreciation (depreciation) on derivatives of Consolidated Funds | $ | (168 | ) | $ | 1,809 | $ | 8,611 |
Gross Amount Not Offset in the Statement of Financial Position | ||||||||||||||||||||
The Company as of December 31, 2018 | Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset in Assets (Liabilities) | Net Amounts of Assets (Liabilities) Presented | Financial Instruments | Net Amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives | $ | 1,066 | $ | — | $ | 1,066 | $ | (869 | ) | $ | 197 | |||||||||
Liabilities: | ||||||||||||||||||||
Derivatives | (869 | ) | — | (869 | ) | 869 | — | |||||||||||||
Net derivative assets | $ | 197 | $ | — | $ | 197 | $ | — | $ | 197 |
Gross Amount Not Offset in the Statement of Financial Position | ||||||||||||||||||||
The Company as of December 31, 2017 | Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset in Assets (Liabilities) | Net Amounts of Assets (Liabilities) Presented | Financial Instruments | Net Amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives | $ | 498 | $ | — | $ | 498 | $ | (498 | ) | $ | — | |||||||||
Liabilities: | ||||||||||||||||||||
Derivatives | (2,639 | ) | — | (2,639 | ) | 498 | (2,141 | ) | ||||||||||||
Net derivative liabilities | $ | (2,141 | ) | $ | — | $ | (2,141 | ) | $ | — | $ | (2,141 | ) |
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||
Consolidated Funds as of December 31, 2018 | Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset in Assets (Liabilities) | Net Amounts of Assets (Liabilities) Presented | Financial Instruments | Net Amount | ||||||||||||||||
Assets: | |||||||||||||||||||||
Derivatives | $ | 8,942 | $ | (5,733 | ) | $ | 3,209 | $ | — | $ | 3,209 | ||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives | (8,245 | ) | 5,733 | (2,512 | ) | — | (2,512 | ) | |||||||||||||
Net derivatives assets | $ | 697 | $ | — | $ | 697 | $ | — | $ | 697 |
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||
Consolidated Funds as of December 31, 2017 | Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset in Assets (Liabilities) | Net Amounts of Assets (Liabilities) Presented | Financial Instruments | Net Amount | ||||||||||||||||
Assets: | |||||||||||||||||||||
Derivatives | $ | 1,750 | $ | (384 | ) | $ | 1,366 | $ | — | $ | 1,366 | ||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives | (846 | ) | 384 | (462 | ) | — | (462 | ) | |||||||||||||
Net derivatives liabilities | $ | 904 | $ | — | $ | 904 | $ | — | $ | 904 |
As of December 31, | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Debt Origination Date | Maturity | Original Borrowing Amount | Carrying Value | Interest Rate | Carrying Value | Interest Rate | |||||||||||||||||||||||||||||||||||
Credit Facility(1) | Revolver | 3/30/2025 | N/A | $ | 0 | 0% | $ | 70,000 | 3.06% | ||||||||||||||||||||||||||||||||
2024 Senior Notes(2) | 10/8/2014 | 10/8/2024 | $ | 250,000 | 247,285 | 4.21 | 246,609 | 4.21 | |||||||||||||||||||||||||||||||||
2030 Senior Notes(3) | 6/15/2020 | 6/15/2030 | 400,000 | 395,713 | 3.28 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Total debt obligations | $ | 642,998 | $ | 316,609 |
As of December 31, 2018 | As of December 31, 2017 | ||||||||||||||||||
Debt Origination Date | Maturity | Original Borrowing Amount | Carrying Value | Interest Rate | Carrying Value | Interest Rate | |||||||||||||
Credit Facility(1) | Revolver | 2/24/2022 | N/A | $ | 235,000 | 4.00 | % | $ | 210,000 | 3.09% | |||||||||
Senior Notes(2) | 10/8/2014 | 10/8/2024 | $ | 250,000 | 245,952 | 4.21 | % | 245,308 | 4.21% | ||||||||||
2015 Term Loan(3) | 9/2/2015 | 7/29/2026 | $ | — | — | N/A | 35,037 | 2.86% | |||||||||||
2016 Term Loan(4) | 12/21/2016 | 1/15/2029 | $ | — | — | N/A | 25,948 | 3.08% | |||||||||||
2017 Term Loan A(4) | 3/22/2017 | 1/22/2028 | $ | — | — | N/A | 17,407 | 2.90% | |||||||||||
2017 Term Loan B(4) | 5/10/2017 | 10/15/2029 | $ | — | — | N/A | 35,062 | 2.90% | |||||||||||
2017 Term Loan C(4) | 6/22/2017 | 7/30/2029 | $ | — | — | N/A | 17,078 | 2.88% | |||||||||||
2017 Term Loan D(4) | 11/16/2017 | 10/15/2030 | $ | — | — | N/A | 30,336 | 2.77% | |||||||||||
Total debt obligations | $ | 480,952 | $ | 616,176 |
Credit Facility | Senior Notes | ||||||||||||||||||||||
Unamortized debt issuance costs as of December 31, 2018 | $ | 4,972 | $ | 1,334 | |||||||||||||||||||
Debt issuance costs incurred | 1,594 | 0 | |||||||||||||||||||||
Amortization of debt issuance costs | (1,311) | (232) | |||||||||||||||||||||
Unamortized debt issuance costs as of December 31, 2019 | $ | 5,255 | $ | 1,102 | |||||||||||||||||||
Debt issuance costs incurred | 1,217 | 3,624 | |||||||||||||||||||||
Amortization of debt issuance costs | (1,240) | (443) | |||||||||||||||||||||
Unamortized debt issuance costs as of December 31, 2020 | $ | 5,232 | $ | 4,283 |
Credit Facility | Senior Notes | Term Loans | Repurchase Agreement Loan | ||||||||||||
Unamortized debt issuance costs as of December 31, 2016 | $ | 4,800 | $ | 1,803 | $ | 526 | $ | — | |||||||
Debt issuance costs incurred | 3,394 | — | 733 | — | |||||||||||
Amortization of debt issuance costs | (1,651 | ) | (232 | ) | (88 | ) | — | ||||||||
Unamortized debt issuance costs as of December 31, 2017 | 6,543 | 1,571 | 1,171 | — | |||||||||||
Debt issuance costs incurred | — | — | 98 | 259 | |||||||||||
Amortization of debt issuance costs | (1,571 | ) | (237 | ) | (56 | ) | (7 | ) | |||||||
Debt extinguishment expense | — | — | (1,213 | ) | (252 | ) | |||||||||
Unamortized debt issuance costs as of December 31, 2018 | $ | 4,972 | $ | 1,334 | $ | — | $ | — |
As of December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Loan Obligations | Fair Value of Loan Obligations | Weighted Average Remaining Maturity In Years | Loan Obligations | Fair Value of Loan Obligations | Weighted Average Remaining Maturity In Years | ||||||||||||||||||||||||||||||
Senior secured notes(1) | $ | 9,796,442 | $ | 9,665,804 | 10.1 | $ | 7,738,337 | $ | 7,700,038 | 11.0 | |||||||||||||||||||||||||
Subordinated notes(2) | 482,391 | 292,272 | 10.2 | 449,877 | 273,710 | 11.0 | |||||||||||||||||||||||||||||
Total loan obligations of Consolidated CLOs | $ | 10,278,833 | $ | 9,958,076 | $ | 8,188,214 | $ | 7,973,748 |
As of December 31, 2018 | As of December 31, 2017 | ||||||||||||||||||
Loan Obligations | Fair Value of Loan Obligations | Weighted Average Remaining Maturity In Years | Loan Obligations | Fair Value of Loan Obligations | Weighted Average Remaining Maturity In Years | ||||||||||||||
Senior secured notes(1) | $ | 6,642,616 | $ | 6,391,643 | 10.94 | $ | 4,801,582 | $ | 4,776,883 | 10.57 | |||||||||
Subordinated notes(2) | 455,333 | 286,448 | 11.21 | 276,169 | 186,311 | 11.25 | |||||||||||||
Total loan obligations of Consolidated CLOs | $ | 7,097,949 | $ | 6,678,091 | $ | 5,077,751 | $ | 4,963,194 |
As of December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||
Consolidated Funds' Debt Facilities | Maturity Date | Total Capacity | Outstanding Loan(1) | Effective Rate | Outstanding Loan(1) | Effective Rate | ||||||||||||||||||||||||||||||||||||||
Credit Facilities: | ||||||||||||||||||||||||||||||||||||||||||||
3/5/2021 | $ | 71,500 | $ | 71,500 | 1.59% | $ | 71,500 | 3.14% | ||||||||||||||||||||||||||||||||||||
1/1/2023 | 18,000 | 17,909 | 1.75 | 17,550 | 3.44 | |||||||||||||||||||||||||||||||||||||||
10/14/2021 | 75,000 | 32,500 | 2.75 | 17,000 | 4.75 | |||||||||||||||||||||||||||||||||||||||
Revolving Term Loan | 2/9/2022(2) | 0 | 0 | 0 | 1,194 | 7.70 | ||||||||||||||||||||||||||||||||||||||
Total borrowings of Consolidated Funds | $ | 121,909 | $ | 107,244 |
As of December 31, 2018 | As of December 31, 2017 | ||||||||||||||||||
Type of Facility | Maturity Date | Total Capacity | Carrying Value(1) | Effective Rate | Carrying Value(1) | Effective Rate | |||||||||||||
Credit Facilities: | |||||||||||||||||||
1/1/2023 | $ | 18,000 | $ | 14,953 | 3.98% | $ | 12,942 | 2.88% | |||||||||||
6/29/2019 | 45,800 | 43,624 | 1.55% | (2) | 48,042 | 1.55% | (2) | ||||||||||||
3/7/2019 | 71,500 | 71,500 | 3.47% | 71,500 | 2.89% | ||||||||||||||
6/30/2021 | 200,375 | 38,844 | 1.00% | (2) | — | —% | |||||||||||||
7/15/2028 | 75,000 | 39,000 | 4.75% | — | —% | ||||||||||||||
Revolving Term Loan | 8/19/2019 | 11,429 | — | —% | 5,714 | 5.86% | |||||||||||||
1/31/2022 | 1,900 | 1,363 | 8.07% | — | —% | ||||||||||||||
Total borrowings of Consolidated Funds | $ | 209,284 | $ | 138,198 |
As of December 31, | As of December 31, | |||||||||||||||||
2018 | 2017 | 2020 | 2019 | |||||||||||||||
Other assets of the Company: | Other assets of the Company: | |||||||||||||||||
Accounts and interest receivable | $ | 11,624 | $ | 3,025 | Accounts and interest receivable | $ | 45,494 | $ | 47,368 | |||||||||
Fixed assets, net | 65,069 | 61,151 | Fixed assets, net | 60,874 | 62,883 | |||||||||||||
Incentive fees receivable | 49,697 | 22,611 | ||||||||||||||||
Deferred tax assets, net | Deferred tax assets, net | 70,026 | 46,364 | |||||||||||||||
Goodwill | Goodwill | 371,047 | 143,855 | |||||||||||||||
Intangible assets, net | Intangible assets, net | 222,088 | 7,975 | |||||||||||||||
Other assets | 33,760 | 43,554 | Other assets | 42,890 | 33,817 | |||||||||||||
Total other assets of the Company | $ | 160,150 | $ | 130,341 | Total other assets of the Company | $ | 812,419 | $ | 342,262 | |||||||||
Other assets of Consolidated Funds: | Other assets of Consolidated Funds: | |||||||||||||||||
Dividends and interest receivable | Dividends and interest receivable | $ | 30,413 | $ | 26,030 | |||||||||||||
Income tax and other receivables | 4,456 | 1,989 | Income tax and other receivables | 5,089 | 4,051 | |||||||||||||
Total other assets of Consolidated Funds | $ | 4,456 | $ | 1,989 | Total other assets of Consolidated Funds | $ | 35,502 | $ | 30,081 |
Year Ended December 31, | As of December 31, | |||||||||||||||||
2018 | 2017 | 2020 | 2019 | |||||||||||||||
Furniture | $ | 9,536 | $ | 9,303 | Furniture | $ | 10,402 | $ | 9,484 | |||||||||
Office and computer equipment | 21,671 | 19,164 | Office and computer equipment | 17,666 | 19,963 | |||||||||||||
Internal-use software | 29,005 | 19,055 | Internal-use software | 47,456 | 36,966 | |||||||||||||
Leasehold improvements | 53,494 | 52,021 | Leasehold improvements | 57,505 | 56,619 | |||||||||||||
Fixed assets, at cost | 113,706 | 99,543 | Fixed assets, at cost | 133,029 | 123,032 | |||||||||||||
Less: accumulated depreciation | (48,637 | ) | (38,392 | ) | Less: accumulated depreciation | (72,155) | (60,149) | |||||||||||
Fixed assets, net | $ | 65,069 | $ | 61,151 | Fixed assets, net | $ | 60,874 | $ | 62,883 |
2019 | $ | 32,039 | |
2020 | 26,799 | ||
2021 | 20,765 | ||
2022 | 22,502 | ||
2023 | 20,290 | ||
Thereafter | 45,141 | ||
Total | $ | 167,536 |
As of December 31, | ||||||||||||||||||||
Classification | 2020 | 2019 | ||||||||||||||||||
Operating lease assets | Right-of-use operating lease assets | $ | 154,742 | $ | 143,406 | |||||||||||||||
Finance lease assets | Other assets(1) | 1,386 | 1,787 | |||||||||||||||||
Total lease assets | $ | 156,128 | $ | 145,193 | ||||||||||||||||
Operating lease liabilities | Operating lease liabilities | $ | 180,236 | $ | 168,817 | |||||||||||||||
Finance lease obligations | Accounts payable, accrued expenses and other liabilities | 1,273 | 1,651 | |||||||||||||||||
Total lease liabilities | $ | 181,509 | $ | 170,468 |
Maturity of lease liabilities | Operating Leases | Finance Leases | ||||||||||||
2021 | $ | 34,304 | $ | 519 | ||||||||||
2022 | 36,079 | 486 | ||||||||||||
2023 | 32,248 | 158 | ||||||||||||
2024 | 29,477 | 156 | ||||||||||||
2025 | 28,969 | 7 | ||||||||||||
After 2025 | 38,713 | 0 | ||||||||||||
Total future payments | 199,790 | 1,326 | ||||||||||||
Less: interest | 19,554 | 53 | ||||||||||||
Total lease liabilities | $ | 180,236 | $ | 1,273 | ||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||
Classification | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||
Operating lease expense | General, administrative and other expenses | $ | 31,713 | $ | 28,814 | $ | 30,497 | |||||||||||||||||||||||||||||||
Finance lease expense: | ||||||||||||||||||||||||||||||||||||||
Amortization of finance lease assets | General, administrative and other expenses | 469 | 304 | 260 | ||||||||||||||||||||||||||||||||||
Interest on finance lease liabilities | Interest expense | 43 | 39 | 39 | ||||||||||||||||||||||||||||||||||
Total lease expense | $ | 32,225 | $ | 29,157 | $ | 30,796 |
Year ended December 31, | ||||||||||||||
Other information | 2020 | 2019 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows for operating leases | $ | 32,121 | $ | 31,509 | ||||||||||
Operating cash flows for finance leases | 53 | 58 | ||||||||||||
Financing cash flows for finance leases | 460 | 311 | ||||||||||||
Leased assets obtained in exchange for new finance lease liabilities | 0 | 778 | ||||||||||||
Leased assets obtained in exchange for new operating lease liabilities | 36,935 | 49,833 |
As of December 31, | ||||||||||||||
Lease term and discount rate | 2020 | 2019 | ||||||||||||
Weighted-average remaining lease terms (in years): | ||||||||||||||
Operating leases | 6.0 | 6.5 | ||||||||||||
Finance leases | 2.6 | 3.3 | ||||||||||||
Weighted-average discount rate: | ||||||||||||||
Operating leases | 3.59 | % | 4.00 | % | ||||||||||
Finance leases | 3.26 | % | 3.39 | % |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Due from affiliates: | |||||||||||
Management fees receivable from non-consolidated funds | $ | 308,581 | $ | 183,579 | |||||||
Incentive fee receivable from non-consolidated funds | 21,495 | 19,006 | |||||||||
Payments made on behalf of and amounts due from non-consolidated funds and employees | 75,811 | 64,545 | |||||||||
Due from affiliates—Company | $ | 405,887 | $ | 267,130 | |||||||
Amounts due from portfolio companies and non-consolidated funds | $ | 17,172 | $ | 6,192 | |||||||
Due from affiliates—Consolidated Funds | $ | 17,172 | $ | 6,192 | |||||||
Due to affiliates: | |||||||||||
Management fee received in advance and rebates payable to non-consolidated funds | $ | 4,808 | $ | 5,432 | |||||||
Tax receivable agreement liability | 62,505 | 26,542 | |||||||||
Undistributed carried interest and incentive fees | 27,322 | 28,086 | |||||||||
Payments made by non-consolidated funds on behalf of and payable by the Company | 5,551 | 11,385 | |||||||||
Due to affiliates—Company | $ | 100,186 | $ | 71,445 | |||||||
As of December 31, | |||||||
2018 | 2017 | ||||||
Due from affiliates: | |||||||
Management fees receivable from non-consolidated funds | $ | 151,455 | $ | 126,506 | |||
Payments made on behalf of and amounts due from non-consolidated funds and employees | 47,922 | 39,244 | |||||
Due from affiliates—Company | $ | 199,377 | $ | 165,750 | |||
Amounts due from portfolio companies and non-consolidated funds | $ | 17,609 | $ | 15,884 | |||
Due from affiliates—Consolidated Funds | $ | 17,609 | $ | 15,884 | |||
Due to affiliates: | |||||||
Management fee rebate payable to non-consolidated funds | $ | 2,105 | $ | 5,213 | |||
Management fees received in advance | 5,491 | 1,729 | |||||
Tax receivable agreement liability | 24,927 | 3,503 | |||||
Undistributed carried interest and incentive fees(1) | 31,162 | 24,542 | |||||
Payments made by non-consolidated funds on behalf of and amounts due from the Company | 18,726 | 4,197 | |||||
Due to affiliates—Company | $ | 82,411 | $ | 39,184 |
For the Year Ended December 31, | ||||||||||||||||||||
Provision for Income Taxes | 2020 | 2019 | 2018 | |||||||||||||||||
The Company | ||||||||||||||||||||
Current: | ||||||||||||||||||||
U.S. federal income tax expense | $ | 23,845 | $ | 32,012 | $ | 16,859 | ||||||||||||||
State and local income tax expense | 6,714 | 6,940 | 4,306 | |||||||||||||||||
Foreign income tax expense | 9,141 | 6,103 | 6,607 | |||||||||||||||||
39,700 | 45,055 | 27,772 | ||||||||||||||||||
Deferred: | ||||||||||||||||||||
U.S. federal income tax expense | 12,451 | 8,820 | 10,572 | |||||||||||||||||
State and local income tax expense (benefit) | 1,952 | 1,001 | (4,789) | |||||||||||||||||
Foreign income tax expense (benefit) | 772 | (1,970) | (1,484) | |||||||||||||||||
15,175 | 7,851 | 4,299 | ||||||||||||||||||
Total: | ||||||||||||||||||||
U.S. federal income tax expense | 36,296 | 40,832 | 27,431 | |||||||||||||||||
State and local income tax expense (benefit) | 8,666 | 7,941 | (483) | |||||||||||||||||
Foreign income tax expense | 9,913 | 4,133 | 5,123 | |||||||||||||||||
Income tax expense | 54,875 | 52,906 | 32,071 | |||||||||||||||||
Consolidated Funds | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Foreign income tax expense (benefit) | 118 | (530) | 131 | |||||||||||||||||
Income tax expense (benefit) | 118 | (530) | 131 | |||||||||||||||||
Total Provision for Income Taxes | ||||||||||||||||||||
Total current income tax expense | 39,818 | 44,525 | 27,903 | |||||||||||||||||
Total deferred income tax expense | 15,175 | 7,851 | 4,299 | |||||||||||||||||
Income tax expense | $ | 54,993 | $ | 52,376 | $ | 32,202 |
Year Ended December 31, | ||||||||||||||||||||
Provision for Income Taxes | 2018 | 2017 | 2016 | Unaudited 2017 Pro Forma | Unaudited 2016 Pro Forma | |||||||||||||||
The Company | ||||||||||||||||||||
Current: | ||||||||||||||||||||
U.S. federal income tax expense (benefit) | $ | 16,859 | $ | (21,559 | ) | $ | 19,419 | $ | 2,634 | $ | 36,326 | |||||||||
State and local income tax expense | 4,306 | 454 | 3,706 | 2,963 | 5,583 | |||||||||||||||
Foreign income tax expense | 6,607 | 3,741 | 8,458 | 3,741 | 8,458 | |||||||||||||||
27,772 | (17,364 | ) | 31,583 | 9,338 | 50,367 | |||||||||||||||
Deferred: | ||||||||||||||||||||
U.S. federal income tax expense (benefit) | 10,572 | (3,466 | ) | (14,247 | ) | 18,297 | (4,306 | ) | ||||||||||||
State and local income tax benefit | (4,789 | ) | (2,414 | ) | (1,400 | ) | (721 | ) | (487 | ) | ||||||||||
Foreign income tax benefit | (1,484 | ) | (1,695 | ) | (4,180 | ) | (1,695 | ) | (4,180 | ) | ||||||||||
4,299 | (7,575 | ) | (19,827 | ) | 15,881 | (8,973 | ) | |||||||||||||
Total: | ||||||||||||||||||||
U.S. federal income tax expense (benefit) | 27,431 | (25,025 | ) | 5,172 | 20,931 | 32,020 | ||||||||||||||
State and local income tax expense (benefit) | (483 | ) | (1,960 | ) | 2,306 | 2,242 | 5,096 | |||||||||||||
Foreign income tax expense | 5,123 | 2,046 | 4,278 | 2,046 | 4,278 | |||||||||||||||
Income tax expense (benefit) | 32,071 | (24,939 | ) | 11,756 | 25,219 | 41,394 | ||||||||||||||
Consolidated Funds | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Foreign income tax expense (benefit) | 131 | 1,887 | (737 | ) | 1,887 | (737 | ) | |||||||||||||
Income tax expense (benefit) | 131 | 1,887 | (737 | ) | 1,887 | (737 | ) | |||||||||||||
Total Provision for Income Taxes | ||||||||||||||||||||
Total current income tax expense (benefit) | 27,903 | (15,477 | ) | 30,846 | 11,225 | 49,630 | ||||||||||||||
Total deferred income tax expense (benefit) | 4,299 | (7,575 | ) | (19,827 | ) | 15,881 | (8,973 | ) | ||||||||||||
Total income tax expense (benefit) | $ | 32,202 | $ | (23,052 | ) | $ | 11,019 | $ | 27,106 | $ | 40,657 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Income tax expense at federal statutory rate | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||||
Income passed through to non-controlling interests | (8.2) | (10.4) | (9.9) | |||||||||||||||||
State and local taxes, net of federal benefit | 1.8 | 1.9 | 2.1 | |||||||||||||||||
Foreign taxes | 0.3 | 0.3 | 0.3 | |||||||||||||||||
Permanent items | (0.5) | (0.4) | (0.8) | |||||||||||||||||
Tax Cuts and Jobs Act | 0 | 0 | (0.4) | |||||||||||||||||
Corporate conversion expense | 0 | 0 | 5.4 | |||||||||||||||||
Other, net | (0.2) | (0.1) | (0.3) | |||||||||||||||||
Valuation allowance | 0.3 | 0 | 0.1 | |||||||||||||||||
Total effective rate | 14.5 | % | 12.3 | % | 17.5 | % |
Year Ended December 31, | |||||||||||||||
2018 | 2017 | 2016 | Unaudited 2017 Pro Forma | Unaudited 2016 Pro Forma | |||||||||||
Income tax expense at federal statutory rate | 21.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | |||||
Income passed through to non-controlling interests | (9.9 | ) | (51.1 | ) | (27.6 | ) | (23.2 | ) | (18.3 | ) | |||||
State and local taxes, net of federal benefit | 2.1 | (1.4 | ) | 0.9 | 0.4 | 1.5 | |||||||||
Foreign taxes | 0.3 | 0.3 | (0.9 | ) | 0.3 | (0.9 | ) | ||||||||
Permanent items | (0.8 | ) | 0.3 | (2.2 | ) | 0.3 | (2.2 | ) | |||||||
Tax Cuts and Jobs Act | (0.4 | ) | (0.4 | ) | — | 3.3 | — | ||||||||
Corporate conversion expense | 5.4 | — | — | — | — | ||||||||||
Other, net | (0.3 | ) | 0.4 | (1.7 | ) | 0.4 | (1.7 | ) | |||||||
Valuation allowance | 0.1 | 1.3 | 0.2 | 1.3 | 0.2 | ||||||||||
Total effective rate | 17.5 | % | (15.6 | )% | 3.7 | % | 17.8 | % | 13.6 | % |
As of December 31, | ||||||||||||
Deferred Tax Assets and Liabilities of the Company | 2018 | 2017 | Unaudited 2017 Pro Forma | |||||||||
Deferred tax assets | ||||||||||||
Net operating losses | $ | 865 | $ | 2,827 | $ | 2,827 | ||||||
Investment in partnerships | 11,527 | — | (10,552 | ) | ||||||||
Amortizable tax basis for AOG unit exchanges | 25,928 | 1,775 | 1,775 | |||||||||
Other, net | 5,416 | 4,767 | 4,767 | |||||||||
Total gross deferred tax assets | 43,736 | 9,369 | (1,183 | ) | ||||||||
Valuation allowance | (22 | ) | (15 | ) | (15 | ) | ||||||
Total deferred tax assets, net | 43,714 | 9,354 | (1,198 | ) | ||||||||
Deferred tax liabilities | ||||||||||||
Investment in partnerships | (1,577 | ) | (1,028 | ) | (1,028 | ) | ||||||
Total deferred tax liabilities | (1,577 | ) | (1,028 | ) | (1,028 | ) | ||||||
Net deferred tax assets | $ | 42,137 | $ | 8,326 | $ | (2,226 | ) |
As of December 31, | ||||||||||||||
Deferred Tax Assets and Liabilities of the Company | 2020 | 2019 | ||||||||||||
Deferred tax assets | ||||||||||||||
Amortizable tax basis for AOG unit exchanges | $ | 67,571 | $ | 25,994 | ||||||||||
Investment in partnerships | 0 | 12,841 | ||||||||||||
Net operating losses | 1,292 | 367 | ||||||||||||
Other, net | 6,563 | 7,216 | ||||||||||||
Total gross deferred tax assets | 75,426 | 46,418 | ||||||||||||
Valuation allowance | (1,010) | (54) | ||||||||||||
Total deferred tax assets, net | $ | 74,416 | $ | 46,364 | ||||||||||
Deferred tax liabilities | ||||||||||||||
Investment in partnerships | (4,390) | 0 | ||||||||||||
Total deferred tax liabilities | (4,390) | 0 | ||||||||||||
Net deferred tax assets | $ | 70,026 | $ | 46,364 |
As of December 31, | ||||||||||||||
Deferred Tax Assets and Liabilities of the Consolidated Funds | 2020 | 2019 | ||||||||||||
Deferred tax assets | ||||||||||||||
Net operating loss | $ | 0 | $ | 5,391 | ||||||||||
Other, net | 0 | 2,173 | ||||||||||||
Total gross deferred tax assets | 0 | 7,564 | ||||||||||||
Valuation allowance | 0 | (7,564) | ||||||||||||
Total deferred tax assets, net | $ | 0 | $ | 0 | ||||||||||
As of December 31, | ||||||||||||
Deferred Tax Assets and Liabilities of the Consolidated Funds | 2018 | 2017 | Unaudited 2017 Pro Forma | |||||||||
Deferred tax assets | ||||||||||||
Net operating loss | $ | 5,525 | $ | 4,703 | $ | 4,703 | ||||||
Other, net | 2,173 | 2,173 | 2,173 | |||||||||
Total gross deferred tax assets | 7,698 | 6,876 | 6,876 | |||||||||
Valuation allowance | (7,698 | ) | (6,876 | ) | (6,876 | ) | ||||||
Total deferred tax assets, net | $ | — | $ | — | $ | — |
Year ended December 31, | |||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||
Options | 19,194,615 | 21,001,916 | 22,781,597 | ||||||||||||||||||||||||||||||||||
Restricted units | 15,970,004 | 14,105,481 | 47,182 | Restricted units | 16,599 | 82 | 0 | ||||||||||||||||||||||||||||||
AOG Units | 121,296,583 | 130,244,013 | 131,499,652 | AOG Units | 115,126,565 | 116,802,160 | 0 |
Year ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Basic earnings per share of Class A common stock: | |||||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 130,442 | $ | 127,184 | $ | 35,320 | |||||||||||||||||||||||
Distributions on unvested restricted units | (10,454) | (7,670) | (6,948) | ||||||||||||||||||||||||||
Net income available to Class A common stockholders | $ | 119,988 | $ | 119,514 | $ | 28,372 | |||||||||||||||||||||||
Basic weighted-average shares of Class A common stock | 135,065,436 | 107,914,953 | 96,023,147 | ||||||||||||||||||||||||||
Basic earnings per share of Class A common stock | $ | 0.89 | $ | 1.11 | $ | 0.30 | |||||||||||||||||||||||
Diluted earnings per share of Class A common stock: | |||||||||||||||||||||||||||||
Net income available to Class A common stockholders | $ | 130,442 | $ | 127,184 | $ | 35,320 | |||||||||||||||||||||||
Distributions on unvested restricted units | 0 | 0 | (6,948) | ||||||||||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 130,442 | $ | 127,184 | $ | 28,372 | |||||||||||||||||||||||
Effect of dilutive shares: | |||||||||||||||||||||||||||||
Restricted units | 9,207,639 | 7,838,200 | 0 | ||||||||||||||||||||||||||
Options | 5,235,423 | 4,124,276 | 0 | ||||||||||||||||||||||||||
Diluted weighted-average shares of Class A common stock | 149,508,498 | 119,877,429 | 96,023,147 | ||||||||||||||||||||||||||
Diluted earnings per share of Class A common stock | $ | 0.87 | $ | 1.06 | $ | 0.30 | |||||||||||||||||||||||
Dividend declared and paid per Class A common stock | $ | 1.60 | $ | 1.28 | $ | 1.33 |
For the Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 35,320 | $ | 54,478 | $ | 99,632 | |||||
Distributions on unvested restricted units | (6,948 | ) | (3,588 | ) | (1,257 | ) | |||||
Preferred stock dividends(1) | — | — | (8 | ) | |||||||
Net income available to Class A common stockholders | $ | 28,372 | $ | 50,890 | $ | 98,367 | |||||
Basic weighted-average shares of Class A common stock | 96,023,147 | 81,838,007 | 80,749,671 | ||||||||
Basic earnings per share of Class A common stock | $ | 0.30 | $ | 0.62 | $ | 1.22 | |||||
Net income (loss) attributable to Ares Management Corporation Class A common stockholders | $ | 35,320 | $ | 54,478 | $ | 99,632 | |||||
Distributions on unvested restricted units | (6,948 | ) | (3,588 | ) | — | ||||||
Preferred stock dividends(1) | — | — | (8 | ) | |||||||
Net income available to Class A common stockholders | $ | 28,372 | $ | 50,890 | $ | 99,624 | |||||
Effect of dilutive shares: | |||||||||||
Restricted units | — | — | 2,187,359 | ||||||||
Diluted weighted-average shares of Class A common stock | 96,023,147 | 81,838,007 | 82,937,030 | ||||||||
Diluted earnings per share of Class A common stock | $ | 0.30 | $ | 0.62 | $ | 1.20 | |||||
Dividend declared and paid per Class A common stock | $ | 1.33 | $ | 1.13 | $ | 0.83 |
For the Year Ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||
Restricted units | $ | 74,441 | $ | 54,339 | $ | 21,894 | Restricted units | $ | 115,680 | $ | 88,979 | $ | 74,441 | |||||||||||||||||||||||||||||||||
Restricted units with a market condition | 1,524 | — | — | Restricted units with a market condition | 7,263 | 3,613 | 1,524 | |||||||||||||||||||||||||||||||||||||||
Options | 12,449 | 13,848 | 15,450 | Options | 43 | 4,362 | 12,449 | |||||||||||||||||||||||||||||||||||||||
Phantom shares | 1,310 | 1,524 | 1,721 | Phantom shares | 0 | 737 | 1,310 | |||||||||||||||||||||||||||||||||||||||
Equity-based compensation expense | $ | 89,724 | $ | 69,711 | $ | 39,065 | Equity-based compensation expense | $ | 122,986 | $ | 97,691 | $ | 89,724 |
Restricted Units | Weighted Average Grant Date Fair Value Per Unit | ||||||||||||||||
Balance - January 1, 2020 | 16,810,473 | $ | 20.07 | ||||||||||||||
Granted | 3,984,695 | 36.91 | |||||||||||||||
Vested | (4,201,333) | 19.62 | |||||||||||||||
Forfeited | (294,171) | 24.85 | |||||||||||||||
Balance - December 31, 2020 | 16,299,664 | $ | 24.30 |
Restricted Units | Weighted Average Grant Date Fair Value Per Unit | |||||
Balance - January 1, 2018 | 13,751,888 | $ | 17.58 | |||
Granted | 4,957,869 | 22.86 | ||||
Vested | (2,035,909 | ) | 17.12 | |||
Forfeited | (418,373 | ) | 19.15 | |||
Balance - December 31, 2018 | 16,255,475 | $ | 19.21 |
2018 | ||||||||
Closing price of the Company's common shares as of valuation date | $ | 20.95 | ||||||
Risk-free interest rate | 2.95 | % | ||||||
Volatility | 30.0 | % | ||||||
Dividend yield | 5.0 | % | ||||||
Cost of equity | 10.0 | % |
Closing price of the Company's common shares as of valuation date | $ | 20.95 | ||
Risk-free interest rate | 2.95 | % | ||
Volatility | 30.0 | % | ||
Dividend yield | 5.0 | % | ||
Cost of equity | 10.0 | % |
Market Condition Awards Units | Weighted Average Grant Date Fair Value Per Unit | ||||||||||
Balance - January 1, 2020 | 1,333,334 | $ | 9.30 | ||||||||
Granted | 0 | 0 | |||||||||
Vested | (1,333,334) | 9.30 | |||||||||
Forfeited | 0 | 0 | |||||||||
Balance - December 31, 2020 | 0 | $ | 0 |
Market Condition Award Units | Weighted Average Grant Date Fair Value Per Unit | |||||
Balance - January 1, 2018 | — | $ | — | |||
Granted | 1,333,334 | 9.30 | ||||
Vested | — | — | ||||
Forfeited | — | — | ||||
Balance - December 31, 2018 | 1,333,334 | $ | 9.30 |
Options | Weighted Average Exercise Price | Weighted Average Remaining Life (in years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Balance - January 1, 2020 | 13,426,870 | $ | 18.99 | 4.3 | $ | 224,260 | |||||||||||||||||
Granted | 0 | 0 | — | — | |||||||||||||||||||
Exercised | (5,114,667) | 18.99 | — | — | |||||||||||||||||||
Expired | 0 | 0 | — | — | |||||||||||||||||||
Forfeited | 0 | 0 | — | — | |||||||||||||||||||
Balance - December 31, 2020 | 8,312,203 | $ | 18.99 | 3.4 | $ | 233,251 | |||||||||||||||||
Exercisable at December 31, 2020 | 8,312,203 | $ | 18.99 | 3.4 | $ | 233,251 |
Options | Weighted Average Exercise Price | Weighted Average Remaining Life (in years) | Aggregate Intrinsic Value | ||||||||||
Balance - January 1, 2018 | 20,495,025 | $ | 18.99 | 6.09 | $ | 20,611 | |||||||
Granted | — | — | — | — | |||||||||
Expired | (907,046 | ) | 19.00 | — | — | ||||||||
Exercised | (50,000 | ) | 19.00 | — | 90 | ||||||||
Forfeited | (796,475 | ) | 19.00 | — | — | ||||||||
Balance - December 31, 2018 | 18,741,504 | $ | 18.99 | 4.88 | $ | — | |||||||
Exercisable at December 31, 2018 | 13,032,852 | $ | 19.00 | 4.66 | $ | — |
Phantom Shares | Weighted Average Grant Date Fair Value Per Share | ||||||
Balance - January 1, 2018 | 156,153 | $ | 19.00 | ||||
Vested | (70,352 | ) | 19.00 | ||||
Forfeited | (19,514 | ) | 19.00 | ||||
December 31, 2018 | 66,287 | $ | 19.00 |
Class A Common Stock | Class B Common Stock | Class C Common Stock | Total | ||||||||||||||||||||
Balance - January 1, 2020 | 115,242,028 | 1,000 | 1 | 115,243,029 | |||||||||||||||||||
Issuance of stock (1) | 19,854,764 | 0 | 115,199,620 | 135,054,384 | |||||||||||||||||||
Exchanges of AOG Units (2) | 4,062,425 | 0 | (2,686,003) | 1,376,422 | |||||||||||||||||||
Redemptions of AOG Units | — | 0 | (66,000) | (66,000) | |||||||||||||||||||
Stock option exercises, net of shares withheld for tax | 4,948,742 | 0 | 0 | 4,948,742 | |||||||||||||||||||
Vesting of restricted stock awards, net of shares withheld for tax | 3,074,603 | 0 | 0 | 3,074,603 | |||||||||||||||||||
Balance Outstanding - December 31, 2020 | 147,182,562 | 1,000 | 112,447,618 | 259,631,180 |
Class A Common Stock | Class B Common Stock | Class C Common Stock | Total | ||||||||
Balance - January 1, 2018 | — | — | — | — | |||||||
Conversion of partnership units to outstanding shares of common stock | 101,530,174 | 1,000 | 1 | 101,531,175 | |||||||
AOG units conversions | 28,120 | — | — | 28,120 | |||||||
Vesting of restricted stock awards | 35,801 | — | — | 35,801 | |||||||
Balance outstanding - December 31, 2018 | 101,594,095 | 1,000 | 1 | 101,595,096 |
Daily Average Ownership | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2020 | As of December 31, 2019 | Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
AOG Units | Direct Ownership Interest | AOG Units | Direct Ownership Interest | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ares Management Corporation | 147,182,562 | 56.69 | % | 115,242,028 | 49.70 | % | 53.98 | % | 48.02 | % | 44.19 | % | ||||||||||||||||||||||||||||||||||||||||||||
Ares Owners Holding L.P. | 112,447,618 | 43.31 | 116,641,833 | 50.30 | 46.02 | 51.98 | 53.99 | |||||||||||||||||||||||||||||||||||||||||||||||||
Affiliate of Alleghany Corporation | 0 | 0 | 0 | 0 | 0 | 0 | 1.82 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 259,630,180 | 100.00 | % | 231,883,861 | 100.00 | % |
As of December 31, | Daily Average Ownership | |||||||||||||||||||||
2018 | 2017 | For the Year Ended December 31, | ||||||||||||||||||||
AOG Units | Direct Ownership Interest | AOG Units | Direct Ownership Interest | 2018 | 2017 | 2016 | ||||||||||||||||
Ares Management Corporation | 101,594,095 | 46.47 | % | 82,280,033 | 38.75 | % | 44.19 | % | 38.59 | % | 38.04 | % | ||||||||||
Ares Owners Holding L.P. | 117,019,274 | 53.53 | % | 117,576,663 | 55.36 | % | 53.99 | % | 55.52 | % | 56.07 | % | ||||||||||
Affiliate of Alleghany Corporation | — | — | % | 12,500,000 | 5.89 | % | 1.82 | % | 5.89 | % | 5.89 | % | ||||||||||
Total | 218,613,369 | 100.00 | % | 212,356,696 | 100.00 | % |
Total | |||||
Opening balance at July 1, 2020 | $ | 99,804 | |||
Net loss | (976) | ||||
Currency translation adjustment, net of tax | 1,538 | ||||
Balance at December 31, 2020 | $ | 100,366 |
Year ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total Segments | OMG | Total | |||||||||||||||||||||||||||||||||||
Management fees (Credit Group includes ARCC Part I Fees of $184,141) | $ | 841,138 | $ | 221,160 | $ | 97,680 | $ | 26,587 | $ | 1,186,565 | $ | 0 | $ | 1,186,565 | |||||||||||||||||||||||||||
Other fees | 18,644 | 178 | 974 | 152 | 19,948 | 0 | 19,948 | ||||||||||||||||||||||||||||||||||
Compensation and benefits | (304,412) | (90,129) | (53,004) | (6,442) | (453,987) | (155,979) | (609,966) | ||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (53,997) | (22,145) | (12,251) | (2,926) | (91,319) | (80,778) | (172,097) | ||||||||||||||||||||||||||||||||||
Fee related earnings | 501,373 | 109,064 | 33,399 | 17,371 | 661,207 | (236,757) | 424,450 | ||||||||||||||||||||||||||||||||||
Performance income—realized | 92,308 | 392,635 | 62,273 | 0 | 547,216 | 0 | 547,216 | ||||||||||||||||||||||||||||||||||
Performance related compensation—realized | (60,281) | (315,905) | (39,482) | 0 | (415,668) | 0 | (415,668) | ||||||||||||||||||||||||||||||||||
Realized net performance income | 32,027 | 76,730 | 22,791 | 0 | 131,548 | 0 | 131,548 | ||||||||||||||||||||||||||||||||||
Investment income (loss)—realized | (2,309) | 29,100 | 3,146 | 13 | 29,950 | (5,698) | 24,252 | ||||||||||||||||||||||||||||||||||
Interest and other investment income (expense) —realized | 16,314 | 5,987 | 4,056 | 996 | 27,353 | (739) | 26,614 | ||||||||||||||||||||||||||||||||||
Interest expense | (8,722) | (8,186) | (5,200) | (1,465) | (23,573) | (1,335) | (24,908) | ||||||||||||||||||||||||||||||||||
Realized net investment income (loss) | 5,283 | 26,901 | 2,002 | (456) | 33,730 | (7,772) | 25,958 | ||||||||||||||||||||||||||||||||||
Realized income | $ | 538,683 | $ | 212,695 | $ | 58,192 | $ | 16,915 | $ | 826,485 | $ | (244,529) | $ | 581,956 | |||||||||||||||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total Segments | OMG | Total | |||||||||||||||||||||||||||||||||||
Management fees (Credit Group includes ARCC Part I Fees of $164,396) | $ | 713,853 | $ | 211,614 | $ | 87,063 | $ | 0 | $ | 1,012,530 | $ | 0 | $ | 1,012,530 | |||||||||||||||||||||||||||
Other fees | 17,124 | 162 | 792 | 0 | 18,078 | 0 | 18,078 | ||||||||||||||||||||||||||||||||||
Compensation and benefits | (261,662) | (78,259) | (49,124) | 0 | (389,045) | (139,162) | (528,207) | ||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (55,103) | (19,098) | (13,249) | 0 | (87,450) | (91,292) | (178,742) | ||||||||||||||||||||||||||||||||||
Fee related earnings | 414,212 | 114,419 | 25,482 | 0 | 554,113 | (230,454) | 323,659 | ||||||||||||||||||||||||||||||||||
Performance income—realized | 104,442 | 264,439 | 33,637 | 0 | 402,518 | 0 | 402,518 | ||||||||||||||||||||||||||||||||||
Performance related compensation—realized | (61,641) | (211,550) | (17,191) | 0 | (290,382) | 0 | (290,382) | ||||||||||||||||||||||||||||||||||
Realized net performance income | 42,801 | 52,889 | 16,446 | 0 | 112,136 | 0 | 112,136 | ||||||||||||||||||||||||||||||||||
Investment income—realized | 2,457 | 47,696 | 8,020 | 0 | 58,173 | 0 | 58,173 | ||||||||||||||||||||||||||||||||||
Interest and other investment income (expense) —realized | 18,670 | 5,046 | 5,633 | 0 | 29,349 | (160) | 29,189 | ||||||||||||||||||||||||||||||||||
Interest expense | (6,497) | (7,486) | (3,824) | 0 | (17,807) | (1,864) | (19,671) | ||||||||||||||||||||||||||||||||||
Realized net investment income (loss) | 14,630 | 45,256 | 9,829 | 0 | 69,715 | (2,024) | 67,691 | ||||||||||||||||||||||||||||||||||
Realized income | $ | 471,643 | $ | 212,564 | $ | 51,757 | $ | 0 | $ | 735,964 | $ | (232,478) | $ | 503,486 | |||||||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Total Segments | OMG | Total | ||||||||||||||||||
Management fees (Credit Group includes ARCC Part I Fees of $128,805) | $ | 564,899 | $ | 198,182 | $ | 73,663 | $ | 836,744 | $ | — | $ | 836,744 | |||||||||||
Other fees | 23,247 | 1,008 | 33 | 24,288 | — | 24,288 | |||||||||||||||||
Compensation and benefits | (216,843 | ) | (74,672 | ) | (38,623 | ) | (330,138 | ) | (126,117 | ) | (456,255 | ) | |||||||||||
General, administrative and other expenses | (43,934 | ) | (18,482 | ) | (11,123 | ) | (73,539 | ) | (75,926 | ) | (149,465 | ) | |||||||||||
Fee related earnings | 327,369 | 106,036 | 23,950 | 457,355 | (202,043 | ) | 255,312 | ||||||||||||||||
Performance income—realized | 121,270 | 139,820 | 96,117 | 357,207 | — | 357,207 | |||||||||||||||||
Performance related compensation—realized | (75,541 | ) | (111,764 | ) | (64,292 | ) | (251,597 | ) | — | (251,597 | ) | ||||||||||||
Realized net performance income | 45,729 | 28,056 | 31,825 | 105,610 | — | 105,610 | |||||||||||||||||
Investment income—realized | 2,492 | 17,816 | 11,409 | 31,717 | 4,790 | 36,507 | |||||||||||||||||
Interest and other investment income—realized | 10,350 | 4,624 | 2,257 | 17,231 | 2,184 | 19,415 | |||||||||||||||||
Interest expense | (11,386 | ) | (6,000 | ) | (1,836 | ) | (19,222 | ) | (2,226 | ) | (21,448 | ) | |||||||||||
Realized net investment income | 1,456 | 16,440 | 11,830 | 29,726 | 4,748 | 34,474 | |||||||||||||||||
Realized income | $ | 374,554 | $ | 150,532 | $ | 67,605 | $ | 592,691 | $ | (197,295 | ) | $ | 395,396 | ||||||||||
Total assets | $ | 729,930 | $ | 942,928 | $ | 469,595 | $ | 2,142,453 | $ | 65,961 | $ | 2,208,414 |
Credit Group | Private Equity Group | Real Estate Group | Total Segments | OMG | Total | ||||||||||||||||||
Management fees (Credit Group includes ARCC Part I Fees of $105,467) | $ | 481,466 | $ | 198,498 | $ | 64,861 | $ | 744,825 | $ | — | $ | 744,825 | |||||||||||
Other fees | 20,830 | 1,495 | 106 | 22,431 | — | 22,431 | |||||||||||||||||
Compensation and benefits | (193,347 | ) | (68,569 | ) | (39,586 | ) | (301,502 | ) | (112,233 | ) | (413,735 | ) | |||||||||||
General, administrative and other expenses | (33,626 | ) | (17,561 | ) | (10,519 | ) | (61,706 | ) | (74,825 | ) | (136,531 | ) | |||||||||||
Fee related earnings | 275,323 | 113,863 | 14,862 | 404,048 | (187,058 | ) | 216,990 | ||||||||||||||||
Performance income—realized | 21,087 | 287,092 | 9,608 | 317,787 | — | 317,787 | |||||||||||||||||
Performance related compensation—realized | (9,218 | ) | (228,774 | ) | (4,338 | ) | (242,330 | ) | — | (242,330 | ) | ||||||||||||
Realized net performance income | 11,869 | 58,318 | 5,270 | 75,457 | — | 75,457 | |||||||||||||||||
Investment income—realized | 7,102 | 22,625 | 5,534 | 35,261 | 3,880 | 39,141 | |||||||||||||||||
Interest and other investment income—realized | 10,192 | 3,226 | 511 | 13,929 | 1,142 | 15,071 | |||||||||||||||||
Interest expense | (12,405 | ) | (5,218 | ) | (1,650 | ) | (19,273 | ) | (1,946 | ) | (21,219 | ) | |||||||||||
Realized net investment income | 4,889 | 20,633 | 4,395 | 29,917 | 3,076 | 32,993 | |||||||||||||||||
Realized income | $ | 292,081 | $ | 192,814 | $ | 24,527 | $ | 509,422 | $ | (183,982 | ) | $ | 325,440 | ||||||||||
Total assets | $ | 837,562 | $ | 1,255,454 | $ | 306,463 | $ | 2,399,479 | $ | 119,702 | $ | 2,519,181 |
Year ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total Segments | OMG | Total | |||||||||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $128,805) | $ | 564,899 | $ | 198,182 | $ | 73,663 | $ | 0 | $ | 836,744 | $ | 0 | $ | 836,744 | |||||||||||||||||||||||||||
Other fees | 23,247 | 1,008 | 33 | 0 | 24,288 | 0 | 24,288 | ||||||||||||||||||||||||||||||||||
Compensation and benefits | (218,148) | (74,672) | (38,623) | 0 | (331,443) | (124,812) | (456,255) | ||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (44,845) | (18,482) | (11,123) | 0 | (74,450) | (75,015) | (149,465) | ||||||||||||||||||||||||||||||||||
Fee related earnings | 325,153 | 106,036 | 23,950 | 0 | 455,139 | (199,827) | 255,312 | ||||||||||||||||||||||||||||||||||
Performance income—realized | 121,270 | 139,820 | 96,117 | 0 | 357,207 | 0 | 357,207 | ||||||||||||||||||||||||||||||||||
Performance related compensation—realized | (75,541) | (111,764) | (64,292) | 0 | (251,597) | 0 | (251,597) | ||||||||||||||||||||||||||||||||||
Realized net performance income | 45,729 | 28,056 | 31,825 | 0 | 105,610 | 0 | 105,610 | ||||||||||||||||||||||||||||||||||
Investment income—realized | 2,492 | 17,816 | 11,409 | 0 | 31,717 | 4,790 | 36,507 | ||||||||||||||||||||||||||||||||||
Interest and other investment income —realized | 10,350 | 4,624 | 2,257 | 0 | 17,231 | 2,184 | 19,415 | ||||||||||||||||||||||||||||||||||
Interest expense | (11,386) | (6,000) | (1,836) | 0 | (19,222) | (2,226) | (21,448) | ||||||||||||||||||||||||||||||||||
Realized net investment income | 1,456 | 16,440 | 11,830 | 0 | 29,726 | 4,748 | 34,474 | ||||||||||||||||||||||||||||||||||
Realized income | $ | 372,338 | $ | 150,532 | $ | 67,605 | $ | 0 | $ | 590,475 | $ | (195,079) | $ | 395,396 |
Credit Group | Private Equity Group | Real Estate Group | Total Segments | OMG | Total | ||||||||||||||||||
Management fees (Credit Group includes ARCC Part I Fees of $121,181) | $ | 444,664 | $ | 147,790 | $ | 66,997 | $ | 659,451 | $ | — | $ | 659,451 | |||||||||||
Other fees | 9,953 | 1,544 | 854 | 12,351 | — | 12,351 | |||||||||||||||||
Compensation and benefits | (184,571 | ) | (61,276 | ) | (41,091 | ) | (286,938 | ) | (97,777 | ) | (384,715 | ) | |||||||||||
General, administrative and other expenses | (29,136 | ) | (14,679 | ) | (10,603 | ) | (54,418 | ) | (60,319 | ) | (114,737 | ) | |||||||||||
Fee related earnings | 240,910 | 73,379 | 16,157 | 330,446 | (158,096 | ) | 172,350 | ||||||||||||||||
Performance income—realized | 51,435 | 230,162 | 11,401 | 292,998 | — | 292,998 | |||||||||||||||||
Performance related compensation—realized | (11,772 | ) | (184,072 | ) | (2,420 | ) | (198,264 | ) | — | (198,264 | ) | ||||||||||||
Realized net performance income | 39,663 | 46,090 | 8,981 | 94,734 | — | 94,734 | |||||||||||||||||
Investment income (loss)—realized | 4,928 | 18,773 | 931 | 24,632 | (14,606 | ) | 10,026 | ||||||||||||||||
Interest and other investment income—realized | 22,547 | 16,891 | 1,598 | 41,036 | 163 | 41,199 | |||||||||||||||||
Interest expense | (8,609 | ) | (5,589 | ) | (1,056 | ) | (15,254 | ) | (2,727 | ) | (17,981 | ) | |||||||||||
Realized net investment income (loss) | 18,866 | 30,075 | 1,473 | 50,414 | (17,170 | ) | 33,244 | ||||||||||||||||
Realized income | $ | 299,439 | $ | 149,544 | $ | 26,611 | $ | 475,594 | $ | (175,266 | ) | $ | 300,328 | ||||||||||
Total assets | $ | 650,435 | $ | 1,218,412 | $ | 232,862 | $ | 2,101,709 | $ | 74,383 | $ | 2,176,092 |
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||
Segment Revenues | ||||||||||||||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $128,805, $105,467 and $121,181 for the years ended December 31, 2018, 2017 and 2016, respectively) | $ | 836,744 | $ | 744,825 | $ | 659,451 | ||||||||||||||||||||||||||||||||||
Segment revenues | Segment revenues | |||||||||||||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $184,141, $164,396 and $128,805 for the years ended December 31, 2020, 2019 and 2018, respectively) | Management fees (includes ARCC Part I Fees of $184,141, $164,396 and $128,805 for the years ended December 31, 2020, 2019 and 2018, respectively) | $ | 1,186,565 | $ | 1,012,530 | $ | 836,744 | |||||||||||||||||||||||||||||||||
Other fees | 24,288 | 22,431 | 12,351 | Other fees | 19,948 | 18,078 | 24,288 | |||||||||||||||||||||||||||||||||
Performance income—realized | 357,207 | 317,787 | 292,998 | Performance income—realized | 547,216 | 402,518 | 357,207 | |||||||||||||||||||||||||||||||||
Total segment revenues | $ | 1,218,239 | $ | 1,085,043 | $ | 964,800 | Total segment revenues | $ | 1,753,729 | $ | 1,433,126 | $ | 1,218,239 | |||||||||||||||||||||||||||
Segment Expenses | ||||||||||||||||||||||||||||||||||||||||
Segment expenses | Segment expenses | |||||||||||||||||||||||||||||||||||||||
Compensation and benefits | $ | 330,138 | $ | 301,502 | $ | 286,938 | Compensation and benefits | $ | 453,987 | $ | 389,045 | $ | 331,443 | |||||||||||||||||||||||||||
General, administrative and other expenses | 73,539 | 61,706 | 54,418 | General, administrative and other expenses | 91,319 | 87,450 | 74,450 | |||||||||||||||||||||||||||||||||
Performance related compensation—realized | 251,597 | 242,330 | 198,264 | Performance related compensation—realized | 415,668 | 290,382 | 251,597 | |||||||||||||||||||||||||||||||||
Total segment expenses | $ | 655,274 | $ | 605,538 | $ | 539,620 | Total segment expenses | $ | 960,974 | $ | 766,877 | $ | 657,490 | |||||||||||||||||||||||||||
Segment Realized Net Investment Income | ||||||||||||||||||||||||||||||||||||||||
Segment realized net investment income | Segment realized net investment income | |||||||||||||||||||||||||||||||||||||||
Investment income—realized | $ | 31,717 | $ | 35,261 | $ | 24,632 | Investment income—realized | $ | 29,950 | $ | 58,173 | $ | 31,717 | |||||||||||||||||||||||||||
Interest and other investment income—realized | 17,231 | 13,929 | 41,036 | |||||||||||||||||||||||||||||||||||||
Interest and other investment income —realized | Interest and other investment income —realized | 27,353 | 29,349 | 17,231 | ||||||||||||||||||||||||||||||||||||
Interest expense | (19,222 | ) | (19,273 | ) | (15,254 | ) | Interest expense | (23,573) | (17,807) | (19,222) | ||||||||||||||||||||||||||||||
Total segment realized net investment income | $ | 29,726 | $ | 29,917 | $ | 50,414 | Total segment realized net investment income | $ | 33,730 | $ | 69,715 | $ | 29,726 |
Year ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Total consolidated revenue | $ | 1,764,046 | $ | 1,765,438 | $ | 958,461 | |||||||||||||||||||||||
Performance (income) loss-unrealized | 7,554 | (303,142) | 247,212 | ||||||||||||||||||||||||||
Management fees of Consolidated Funds eliminated in consolidation | 45,268 | 34,920 | 34,242 | ||||||||||||||||||||||||||
Incentive fees of Consolidated Funds eliminated in consolidation | 141 | 13,851 | 4,000 | ||||||||||||||||||||||||||
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation | 15,824 | 12,641 | 0 | ||||||||||||||||||||||||||
Administrative fees(1) | (36,512) | (31,629) | (27,380) | ||||||||||||||||||||||||||
Performance income (loss) reclass(2) | (3,726) | 740 | 205 | ||||||||||||||||||||||||||
Principal investment (income) loss, net of eliminations | (28,552) | (56,555) | 1,455 | ||||||||||||||||||||||||||
Net (income) expense of non-controlling interests in consolidated subsidiaries | (10,314) | (3,138) | 44 | ||||||||||||||||||||||||||
Total consolidation adjustments and reconciling items | (10,317) | (332,312) | 259,778 | ||||||||||||||||||||||||||
Total segment revenue | $ | 1,753,729 | $ | 1,433,126 | $ | 1,218,239 |
For the Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Total consolidated revenue | $ | 958,461 | $ | 1,479,943 | $ | 1,254,373 | |||||
Performance income—unrealized | 247,212 | (325,915 | ) | (228,472 | ) | ||||||
Management fees of Consolidated Funds eliminated in consolidation | 34,242 | 22,406 | 17,383 | ||||||||
Carried interest allocation of Consolidated Funds eliminated in consolidation | — | 1,017 | (2,926 | ) | |||||||
Incentive fees of Consolidated Funds eliminated in consolidation | 4,000 | 4,075 | 4,065 | ||||||||
Principal investment income of Consolidated Funds eliminated in consolidation | 2,502 | 24,587 | (4,760 | ) | |||||||
Administrative fees(1) | (27,380 | ) | (34,049 | ) | (26,934 | ) | |||||
Performance income reclass(2) | 205 | 1,936 | 2,479 | ||||||||
Principal investment income | (1,047 | ) | (89,031 | ) | (50,408 | ) | |||||
Revenue of non-controlling interests in consolidated subsidiaries(3) | 44 | 74 | — | ||||||||
Total consolidation adjustments and reconciling items | 259,778 | (394,900 | ) | (289,573 | ) | ||||||
Total segment revenue | $ | 1,218,239 | $ | 1,085,043 | $ | 964,800 |
Year ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Total consolidated expenses | $ | 1,450,486 | $ | 1,462,797 | $ | 870,362 | |||||||||||||||||||||||
Performance related compensation-unrealized | 11,552 | (206,799) | 221,343 | ||||||||||||||||||||||||||
Expenses of Consolidated Funds added in consolidation | (65,527) | (90,816) | (92,006) | ||||||||||||||||||||||||||
Expenses of Consolidated Funds eliminated in consolidation | 45,408 | 48,771 | 38,242 | ||||||||||||||||||||||||||
Administrative fees(1) | (36,512) | (31,629) | (27,380) | ||||||||||||||||||||||||||
OMG expenses | (236,757) | (230,454) | (199,827) | ||||||||||||||||||||||||||
Acquisition and merger-related expense | (11,124) | (16,266) | (2,936) | ||||||||||||||||||||||||||
Equity compensation expense | (122,986) | (97,691) | (89,724) | ||||||||||||||||||||||||||
Deferred placement fees | (19,329) | (24,306) | (20,343) | ||||||||||||||||||||||||||
Depreciation and amortization expense | (40,662) | (40,602) | (25,087) | ||||||||||||||||||||||||||
Other expense(2) | 0 | 0 | (11,836) | ||||||||||||||||||||||||||
Expense of non-controlling interests in consolidated subsidiaries | (13,575) | (6,128) | (3,318) | ||||||||||||||||||||||||||
Total consolidation adjustments and reconciling items | (489,512) | (695,920) | (212,872) | ||||||||||||||||||||||||||
Total segment expenses | $ | 960,974 | $ | 766,877 | $ | 657,490 |
For the Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Total consolidated expenses | $ | 870,362 | $ | 1,504,758 | $ | 1,016,420 | |||||
Performance related compensation—unrealized | 221,343 | (237,392 | ) | (189,582 | ) | ||||||
Expenses of Consolidated Funds added in consolidation | (92,006 | ) | (65,501 | ) | (42,520 | ) | |||||
Expenses of Consolidated Funds eliminated in consolidation | 38,242 | 26,481 | 21,447 | ||||||||
Administrative fees(1) | (27,380 | ) | (34,049 | ) | (26,934 | ) | |||||
OMG expenses | (202,043 | ) | (187,058 | ) | (158,096 | ) | |||||
Acquisition and merger-related expenses | (2,936 | ) | (280,055 | ) | (773 | ) | |||||
Equity compensation expense | (89,724 | ) | (69,711 | ) | (39,065 | ) | |||||
Placement fees and underwriting costs | (20,343 | ) | (19,765 | ) | (6,424 | ) | |||||
Amortization of intangibles | (9,032 | ) | (17,850 | ) | (26,638 | ) | |||||
Depreciation expense | (16,055 | ) | (12,631 | ) | (8,215 | ) | |||||
Other expenses(2) | (11,836 | ) | — | — | |||||||
Expenses of non-controlling interests in consolidated subsidiaries(3) | (3,318 | ) | (1,689 | ) | — | ||||||
Total consolidation adjustments and reconciling items | (215,088 | ) | (899,220 | ) | (476,800 | ) | |||||
Total segment expenses | $ | 655,274 | $ | 605,538 | $ | 539,620 |
Year ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Total consolidated other income | $ | 65,918 | $ | 122,539 | $ | 96,242 | |||||||||||||||||||||||
Investment loss—unrealized | 47,317 | 26,620 | 49,241 | ||||||||||||||||||||||||||
Interest and other investment (income) loss—unrealized | (12,134) | 9,061 | 233 | ||||||||||||||||||||||||||
Other income from Consolidated Funds added in consolidation, net | (70,994) | (117,405) | (114,286) | ||||||||||||||||||||||||||
Other expense from Consolidated Funds eliminated in consolidation, net | (14,053) | (12,991) | (865) | ||||||||||||||||||||||||||
OMG other income | (927) | (1,190) | (3,315) | ||||||||||||||||||||||||||
Performance (income) loss reclass(1) | 3,726 | (740) | (205) | ||||||||||||||||||||||||||
Principal investment income | 4,044 | 44,320 | 1,047 | ||||||||||||||||||||||||||
Other (income) expense, net(2) | 10,277 | (460) | 1,653 | ||||||||||||||||||||||||||
Other (income) loss of non-controlling interests in consolidated subsidiaries | 556 | (39) | (19) | ||||||||||||||||||||||||||
Total consolidation adjustments and reconciling items | (32,188) | (52,824) | (66,516) | ||||||||||||||||||||||||||
Total segment realized net investment income | $ | 33,730 | $ | 69,715 | $ | 29,726 |
For the Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Total consolidated other income | $ | 96,242 | $ | 174,674 | $ | 59,967 | |||||
Investment (income) loss—unrealized | 49,241 | (46,860 | ) | (16,653 | ) | ||||||
Interest and other investment (income) loss—unrealized | 233 | 1,868 | (3,323 | ) | |||||||
Other income from Consolidated Funds added in consolidation, net | (114,286 | ) | (154,869 | ) | (37,388 | ) | |||||
Other (income) expense from Consolidated Funds eliminated in consolidation, net | (865 | ) | 1,059 | (96 | ) | ||||||
OMG other expense | (3,315 | ) | (11,828 | ) | 19,381 | ||||||
Performance income reclass(1) | (205 | ) | (1,936 | ) | (2,479 | ) | |||||
Principal investment income | 1,047 | 89,031 | 50,408 | ||||||||
Change in value of contingent consideration | — | (20,156 | ) | (17,675 | ) | ||||||
Other (income) expense | 1,653 | (1,042 | ) | (1,728 | ) | ||||||
Other income of non-controlling interests in consolidated subsidiaries(2) | (19 | ) | (24 | ) | — | ||||||
Total consolidation adjustments and reconciling items | (66,516 | ) | (144,757 | ) | (9,553 | ) | |||||
Total segment realized net investment income | $ | 29,726 | $ | 29,917 | $ | 50,414 |
Year ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Income before taxes | $ | 379,478 | $ | 425,180 | $ | 184,341 | |||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Depreciation and amortization expense | 40,662 | 40,602 | 25,087 | ||||||||||||||||||||||||||
Equity compensation expense | 122,986 | 97,691 | 89,724 | ||||||||||||||||||||||||||
Acquisition and merger-related expense | 11,194 | 16,266 | 2,936 | ||||||||||||||||||||||||||
Deferred placement fees | 19,329 | 24,306 | 20,343 | ||||||||||||||||||||||||||
OMG expense, net | 235,830 | 229,264 | 196,512 | ||||||||||||||||||||||||||
Other (income) expense, net(1) | 10,207 | (460) | 13,489 | ||||||||||||||||||||||||||
Net expense of non-controlling interests in consolidated subsidiaries | 3,817 | 2,951 | 3,343 | ||||||||||||||||||||||||||
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (28,203) | (39,174) | (20,643) | ||||||||||||||||||||||||||
Total performance (income) loss-unrealized | 7,554 | (303,142) | 247,212 | ||||||||||||||||||||||||||
Total performance related compensation - unrealized | (11,552) | 206,799 | (221,343) | ||||||||||||||||||||||||||
Total investment loss-unrealized | 35,183 | 35,681 | 49,474 | ||||||||||||||||||||||||||
Realized income | 826,485 | 735,964 | 590,475 | ||||||||||||||||||||||||||
Total performance income - realized | (547,216) | (402,518) | (357,207) | ||||||||||||||||||||||||||
Total performance related compensation - realized | 415,668 | 290,382 | 251,597 | ||||||||||||||||||||||||||
Total investment income - realized | (33,730) | (69,715) | (29,726) | ||||||||||||||||||||||||||
Fee related earnings | $ | 661,207 | $ | 554,113 | $ | 455,139 |
For the Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Income before taxes | $ | 184,341 | $ | 149,859 | $ | 297,920 | |||||
Adjustments: | |||||||||||
Amortization of intangibles | 9,032 | 17,850 | 26,638 | ||||||||
Depreciation expense | 16,055 | 12,631 | 8,215 | ||||||||
Equity compensation expenses | 89,724 | 69,711 | 39,065 | ||||||||
Acquisition and merger-related expenses | 2,936 | 259,899 | (16,902 | ) | |||||||
Placement fees and underwriting costs | 20,343 | 19,765 | 6,424 | ||||||||
OMG expenses, net | 198,728 | 175,230 | 177,477 | ||||||||
Other (income) expense(1) | 13,489 | (1,042 | ) | (1,728 | ) | ||||||
Expense of non-controlling interests in consolidated subsidiaries(2) | 3,343 | 1,739 | — | ||||||||
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (20,643 | ) | (62,705 | ) | (2,649 | ) | |||||
Total performance (income) loss - unrealized | 247,212 | (325,915 | ) | (228,472 | ) | ||||||
Total performance related compensation - unrealized | (221,343 | ) | 237,392 | 189,582 | |||||||
Total net investment (income) loss - unrealized | 49,474 | (44,992 | ) | (19,976 | ) | ||||||
Realized income | 592,691 | 509,422 | 475,594 | ||||||||
Total performance income - realized | (357,207 | ) | (317,787 | ) | (292,998 | ) | |||||
Total performance related compensation - realized | 251,597 | 242,330 | 198,264 | ||||||||
Total net investment income - realized | (29,726 | ) | (29,917 | ) | (50,414 | ) | |||||
Fee related earnings | $ | 457,355 | $ | 404,048 | $ | 330,446 |
For the Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Total consolidated assets | $ | 10,154,692 | $ | 8,563,522 | $ | 5,829,712 | |||||
Total assets from Consolidated Funds added in consolidation | (8,141,280 | ) | (6,231,245 | ) | (3,822,010 | ) | |||||
Total assets from the Company eliminated in consolidation | 195,002 | 186,904 | 168,390 | ||||||||
OMG assets | (65,961 | ) | (119,702 | ) | (74,383 | ) | |||||
Total consolidation adjustments and reconciling items | (8,012,239 | ) | (6,164,043 | ) | (3,728,003 | ) | |||||
Total segment assets | $ | 2,142,453 | $ | 2,399,479 | $ | 2,101,709 |
As of December 31, | As of December 31, | |||||||||||||||||
2018 | 2017 | 2020 | 2019 | |||||||||||||||
Maximum exposure to loss attributable to the Company's investment in non-consolidated VIEs | $ | 222,477 | $ | 251,376 | $ | 224,203 | $ | 260,520 | ||||||||||
Maximum exposure to loss attributable to the Company's investment in consolidated VIEs | $ | 186,455 | $ | 175,620 | 391,963 | 181,856 | ||||||||||||
Assets of consolidated VIEs | $ | 8,141,280 | $ | 6,231,245 | Assets of consolidated VIEs | 11,580,003 | 9,454,572 | |||||||||||
Liabilities of consolidated VIEs | $ | 7,479,383 | $ | 5,538,054 | Liabilities of consolidated VIEs | 10,716,438 | 8,679,869 |
Year ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Net income attributable to non-controlling interests related to consolidated VIEs | $ | 28,085 | $ | 39,704 | $ | 20,512 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net income attributable to non-controlling interests related to consolidated VIEs | $ | 20,512 | $ | 60,818 | $ | 3,386 |
As of December 31, 2020 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 539,812 | $ | — | $ | 0 | $ | 539,812 | |||||||||||||||
Investments (includes $1,145,853 of accrued carried interest) | 2,064,517 | — | (381,758) | 1,682,759 | |||||||||||||||||||
Due from affiliates | 426,021 | — | (20,134) | 405,887 | |||||||||||||||||||
Other assets | 812,630 | — | (211) | 812,419 | |||||||||||||||||||
Right-of-use operating lease assets | 154,742 | — | — | 154,742 | |||||||||||||||||||
Assets of Consolidated Funds | |||||||||||||||||||||||
Cash and cash equivalents | — | 522,377 | 0 | 522,377 | |||||||||||||||||||
Investments, at fair value | — | 10,873,522 | 3,575 | 10,877,097 | |||||||||||||||||||
Due from affiliates | — | 27,377 | (10,205) | 17,172 | |||||||||||||||||||
Receivable for securities sold | — | 121,225 | 0 | 121,225 | |||||||||||||||||||
Other assets | — | 35,502 | 0 | 35,502 | |||||||||||||||||||
Total assets | $ | 3,997,722 | $ | 11,580,003 | $ | (408,733) | $ | 15,168,992 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 125,494 | $ | — | $ | (10,205) | $ | 115,289 | |||||||||||||||
Accrued compensation | 103,010 | — | 0 | 103,010 | |||||||||||||||||||
Due to affiliates | 100,186 | — | 0 | 100,186 | |||||||||||||||||||
Performance related compensation payable | 813,378 | — | 0 | 813,378 | |||||||||||||||||||
Debt obligations | 642,998 | — | 0 | 642,998 | |||||||||||||||||||
Operating lease liabilities | 180,236 | — | — | 180,236 | |||||||||||||||||||
Liabilities of Consolidated Funds | |||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | — | 46,824 | 0 | 46,824 | |||||||||||||||||||
Due to affiliates | — | 16,770 | (16,770) | 0 | |||||||||||||||||||
Payable for securities purchased | — | 514,946 | 0 | 514,946 | |||||||||||||||||||
CLO loan obligations, at fair value | — | 10,015,989 | (57,913) | 9,958,076 | |||||||||||||||||||
Fund borrowings | — | 121,909 | 0 | 121,909 | |||||||||||||||||||
Total liabilities | 1,965,302 | 10,716,438 | (84,888) | 12,596,852 | |||||||||||||||||||
Commitments and contingencies | 0 | 0 | 0 | 0 | |||||||||||||||||||
Redeemable interest in Ares Operating Group entities | 100,366 | — | — | 100,366 | |||||||||||||||||||
Non-controlling interest in Consolidated Funds | — | 863,565 | (323,845) | 539,720 | |||||||||||||||||||
Non-controlling interest in Ares Operating Group entities | 738,369 | — | 0 | 738,369 | |||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||||||
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (12,400,000 shares issued and outstanding) | 298,761 | — | 0 | 298,761 | |||||||||||||||||||
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (147,182,562 shares issued and outstanding) | 1,472 | — | — | 1,472 | |||||||||||||||||||
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding) | — | — | — | 0 | |||||||||||||||||||
Class C common stock, $0.01 par value, 499,999,000 shares authorized (112,447,618 shares issued and outstanding) | 1,124 | — | — | 1,124 | |||||||||||||||||||
Additional paid-in-capital | 1,043,669 | — | — | 1,043,669 | |||||||||||||||||||
Retained earnings | (151,824) | — | — | (151,824) | |||||||||||||||||||
Accumulated other comprehensive loss, net of tax | 483 | — | 0 | 483 | |||||||||||||||||||
Total stockholders' equity | 1,193,685 | — | 0 | 1,193,685 | |||||||||||||||||||
Total equity | 1,932,054 | 863,565 | (323,845) | 2,471,774 | |||||||||||||||||||
Total liabilities, redeemable interest, non-controlling interests and equity | $ | 3,997,722 | $ | 11,580,003 | $ | (408,733) | $ | 15,168,992 |
As of December 31, 2018 | |||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 110,247 | $ | — | $ | — | $ | 110,247 | |||||||
Investments ($841,079 of accrued carried interest) | 1,512,592 | — | (186,455 | ) | 1,326,137 | ||||||||||
Due from affiliates | 207,924 | — | (8,547 | ) | 199,377 | ||||||||||
Intangible assets, net | 31,578 | — | — | 31,578 | |||||||||||
Goodwill | 143,786 | — | — | 143,786 | |||||||||||
Deferred tax asset, net | 42,137 | — | — | 42,137 | |||||||||||
Other assets | 160,150 | — | — | 160,150 | |||||||||||
Assets of Consolidated Funds | |||||||||||||||
Cash and cash equivalents | — | 384,644 | — | 384,644 | |||||||||||
Investments, at fair value | — | 7,673,165 | — | 7,673,165 | |||||||||||
Due from affiliates | — | 17,609 | — | 17,609 | |||||||||||
Dividends and interest receivable | — | 19,330 | — | 19,330 | |||||||||||
Receivable for securities sold | — | 42,076 | — | 42,076 | |||||||||||
Other assets | — | 4,456 | — | 4,456 | |||||||||||
Total assets | $ | 2,208,414 | $ | 8,141,280 | $ | (195,002 | ) | $ | 10,154,692 | ||||||
Liabilities | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 83,221 | $ | — | $ | — | $ | 83,221 | |||||||
Accrued compensation | 29,389 | — | — | 29,389 | |||||||||||
Due to affiliates | 82,411 | — | — | 82,411 | |||||||||||
Performance related compensation payable | 641,737 | — | — | 641,737 | |||||||||||
Debt obligations | 480,952 | — | — | 480,952 | |||||||||||
Liabilities of Consolidated Funds | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | — | 83,876 | — | 83,876 | |||||||||||
Due to affiliates | — | 8,547 | (8,547 | ) | — | ||||||||||
Payable for securities purchased | — | 471,390 | — | 471,390 | |||||||||||
CLO loan obligations | — | 6,706,286 | (28,195 | ) | 6,678,091 | ||||||||||
Fund borrowings | — | 209,284 | — | 209,284 | |||||||||||
Total liabilities | 1,317,710 | 7,479,383 | (36,742 | ) | 8,760,351 | ||||||||||
Commitments and contingencies | |||||||||||||||
Non-controlling interest in Consolidated Funds | — | 661,897 | (158,260 | ) | 503,637 | ||||||||||
Non-controlling interest in Ares Operating Group entities | 302,780 | — | — | 302,780 | |||||||||||
Stockholders' Equity | |||||||||||||||
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (12,400,000 units issued and outstanding at December 31, 2018) | 298,761 | — | — | 298,761 | |||||||||||
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (101,594,095 shares issued and outstanding at December 31, 2018) | 1,016 | — | — | 1,016 | |||||||||||
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding at December 31, 2018) | — | — | — | — | |||||||||||
Class C common stock, $0.01 par value, 499,999,000 shares authorized (1 shares issued and outstanding at December 31, 2018) | — | — | — | — | |||||||||||
Additional paid-in-capital | 326,007 | — | — | 326,007 | |||||||||||
Retained earnings | (29,336 | ) | (29,336 | ) | |||||||||||
Accumulated other comprehensive loss, net of taxes | (8,524 | ) | — | — | (8,524 | ) | |||||||||
Total stockholders' equity | 587,924 | — | — | 587,924 | |||||||||||
Total equity | 890,704 | 661,897 | (158,260 | ) | 1,394,341 | ||||||||||
Total liabilities, non-controlling interests and equity | $ | 2,208,414 | $ | 8,141,280 | $ | (195,002 | ) | $ | 10,154,692 |
As of December 31, 2019 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 138,384 | $ | — | $ | 0 | $ | 138,384 | |||||||||||||||
Investments (includes $1,134,967 of accrued carried interest) | 1,845,520 | — | (181,856) | 1,663,664 | |||||||||||||||||||
Due from affiliates | 281,228 | — | (14,098) | 267,130 | |||||||||||||||||||
Other assets | 344,643 | — | (2,381) | 342,262 | |||||||||||||||||||
Right-of-use operating lease assets | 143,406 | — | — | 143,406 | |||||||||||||||||||
Assets of Consolidated Funds | |||||||||||||||||||||||
Cash and cash equivalents | — | 606,321 | 0 | 606,321 | |||||||||||||||||||
Investments, at fair value | — | 8,723,169 | 4,778 | 8,727,947 | |||||||||||||||||||
Due from affiliates | — | 6,192 | 0 | 6,192 | |||||||||||||||||||
Receivable for securities sold | — | 88,809 | 0 | 88,809 | |||||||||||||||||||
Other assets | — | 30,081 | 0 | 30,081 | |||||||||||||||||||
Total assets | $ | 2,753,181 | $ | 9,454,572 | $ | (193,557) | $ | 12,014,196 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 88,173 | $ | — | $ | 0 | $ | 88,173 | |||||||||||||||
Accrued compensation | 37,795 | — | 0 | 37,795 | |||||||||||||||||||
Due to affiliates | 71,445 | — | 0 | 71,445 | |||||||||||||||||||
Performance related compensation payable | 829,764 | — | 0 | 829,764 | |||||||||||||||||||
Debt obligations | 316,609 | — | 0 | 316,609 | |||||||||||||||||||
Operating lease liabilities | 168,817 | — | — | 168,817 | |||||||||||||||||||
Liabilities of Consolidated Funds | |||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | — | 61,857 | 0 | 61,857 | |||||||||||||||||||
Due to affiliates | — | 11,700 | (11,700) | 0 | |||||||||||||||||||
Payable for securities purchased | — | 500,146 | 0 | 500,146 | |||||||||||||||||||
CLO loan obligations | — | 7,998,922 | (25,174) | 7,973,748 | |||||||||||||||||||
Fund borrowings | — | 107,244 | 0 | 107,244 | |||||||||||||||||||
Total liabilities | 1,512,603 | 8,679,869 | (36,874) | 10,155,598 | |||||||||||||||||||
Commitments and contingencies | 0 | 0 | 0 | 0 | |||||||||||||||||||
Non-controlling interest in Consolidated Funds | — | 774,703 | (156,683) | 618,020 | |||||||||||||||||||
Non-controlling interest in Ares Operating Group entities | 472,288 | — | 0 | 472,288 | |||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||||||
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (12,400,000 shares issued and outstanding) | 298,761 | — | 0 | 298,761 | |||||||||||||||||||
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (115,242,028 shares issued and outstanding) | 1,152 | — | 0 | 1,152 | |||||||||||||||||||
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding) | — | — | — | 0 | |||||||||||||||||||
Class C common stock, $0.01 par value, 499,999,000 shares authorized (1 share issued and outstanding) | 0 | — | — | 0 | |||||||||||||||||||
Additional paid-in-capital | 525,244 | — | — | 525,244 | |||||||||||||||||||
Retained earnings | (50,820) | — | — | (50,820) | |||||||||||||||||||
Accumulated other comprehensive loss, net of tax | (6,047) | — | 0 | (6,047) | |||||||||||||||||||
Total stockholders' equity | 768,290 | — | 0 | 768,290 | |||||||||||||||||||
Total equity | 1,240,578 | 774,703 | (156,683) | 1,858,598 | |||||||||||||||||||
Total liabilities, non-controlling interests and equity | $ | 2,753,181 | $ | 9,454,572 | $ | (193,557) | $ | 12,014,196 |
As of December 31, 2017 | |||||||||||||||
As adjusted | |||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 118,929 | $ | — | $ | — | $ | 118,929 | |||||||
Investments ($1,077,236 of accrued carried interest) | 1,900,191 | — | (175,620 | ) | 1,724,571 | ||||||||||
Due from affiliates | 171,701 | — | (5,951 | ) | 165,750 | ||||||||||
Intangible assets, net | 40,465 | — | — | 40,465 | |||||||||||
Goodwill | 143,895 | — | — | 143,895 | |||||||||||
Deferred tax asset, net | 8,326 | — | — | 8,326 | |||||||||||
Other assets | 135,674 | — | (5,333 | ) | 130,341 | ||||||||||
Assets of Consolidated Funds | |||||||||||||||
Cash and cash equivalents | — | 556,500 | — | 556,500 | |||||||||||
Investments, at fair value | — | 5,582,842 | — | 5,582,842 | |||||||||||
Due from affiliates | — | 15,884 | — | 15,884 | |||||||||||
Dividends and interest receivable | — | 12,568 | — | 12,568 | |||||||||||
Receivable for securities sold | — | 61,462 | — | 61,462 | |||||||||||
Other assets | — | 1,989 | — | 1,989 | |||||||||||
Total assets | $ | 2,519,181 | $ | 6,231,245 | $ | (186,904 | ) | $ | 8,563,522 | ||||||
Liabilities | |||||||||||||||
Accounts payable and accrued expenses | $ | 81,955 | $ | — | $ | — | $ | 81,955 | |||||||
Accrued compensation | 27,978 | — | — | 27,978 | |||||||||||
Due to affiliates | 39,184 | — | — | 39,184 | |||||||||||
Performance related compensation payable | 822,084 | — | — | 822,084 | |||||||||||
Debt obligations | 616,176 | — | — | 616,176 | |||||||||||
Deferred tax liability, net | — | — | — | — | |||||||||||
Liabilities of Consolidated Funds | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | — | 64,316 | — | 64,316 | |||||||||||
Due to affiliates | — | 11,285 | (11,285 | ) | — | ||||||||||
Payable for securities purchased | — | 350,145 | — | 350,145 | |||||||||||
CLO loan obligations | — | 4,974,110 | (10,916 | ) | 4,963,194 | ||||||||||
Fund borrowings | — | 138,198 | — | 138,198 | |||||||||||
Total liabilities | 1,587,377 | 5,538,054 | (22,201 | ) | 7,103,230 | ||||||||||
Commitments and contingencies | |||||||||||||||
Preferred equity (12,400,000 shares issued and outstanding) | 298,761 | — | — | 298,761 | |||||||||||
Non-controlling interest in Consolidated Funds | — | 693,191 | (164,703 | ) | 528,488 | ||||||||||
Non-controlling interest in Ares Operating Group entities | 358,186 | — | — | 358,186 | |||||||||||
Controlling interest in Ares Management, L.P.: | |||||||||||||||
Partners' Capital (82,280,033 shares issued and outstanding) | 279,065 | — | — | 279,065 | |||||||||||
Accumulated other comprehensive loss, net of tax benefit | (4,208 | ) | — | — | (4,208 | ) | |||||||||
Total controlling interest in Ares Management, L.P. | 274,857 | — | — | 274,857 | |||||||||||
Total equity | 931,804 | 693,191 | (164,703 | ) | 1,460,292 | ||||||||||
Total liabilities, non-controlling interests and equity | $ | 2,519,181 | $ | 6,231,245 | $ | (186,904 | ) | $ | 8,563,522 |
Year ended December 31, 2020 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $184,141) | $ | 1,195,876 | $ | — | $ | (45,268) | $ | 1,150,608 | |||||||||||||||
Carried interest allocation | 505,608 | — | 0 | 505,608 | |||||||||||||||||||
Incentive fees | 38,043 | — | (141) | 37,902 | |||||||||||||||||||
Principal investment income | 4,044 | — | 24,508 | 28,552 | |||||||||||||||||||
Administrative, transaction and other fees | 57,200 | 0 | (15,824) | 41,376 | |||||||||||||||||||
Total revenues | 1,800,771 | — | (36,725) | 1,764,046 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Compensation and benefits | 767,252 | — | 0 | 767,252 | |||||||||||||||||||
Performance related compensation | 404,116 | — | 0 | 404,116 | |||||||||||||||||||
General, administrative and other expense | 258,999 | — | 0 | 258,999 | |||||||||||||||||||
Expenses of the Consolidated Funds | — | 65,527 | (45,408) | 20,119 | |||||||||||||||||||
Total expenses | 1,430,367 | 65,527 | (45,408) | 1,450,486 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Net realized and unrealized losses on investments | (8,720) | — | (288) | (9,008) | |||||||||||||||||||
Interest and dividend income | 11,641 | — | (3,570) | 8,071 | |||||||||||||||||||
Interest expense | (24,908) | — | — | (24,908) | |||||||||||||||||||
Other income, net | 2,858 | — | 8,433 | 11,291 | |||||||||||||||||||
Net realized and unrealized losses on investments of the Consolidated Funds | — | (109,387) | 12,523 | (96,864) | |||||||||||||||||||
Interest and other income of the Consolidated Funds | — | 473,857 | (10,205) | 463,652 | |||||||||||||||||||
Interest expense of the Consolidated Funds | — | (293,476) | 7,160 | (286,316) | |||||||||||||||||||
Total other income (expense) | (19,129) | 70,994 | 14,053 | 65,918 | |||||||||||||||||||
Income before taxes | 351,275 | 5,467 | 22,736 | 379,478 | |||||||||||||||||||
Income tax expense | 54,875 | 118 | 0 | 54,993 | |||||||||||||||||||
Net income | 296,400 | 5,349 | 22,736 | 324,485 | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | — | 5,349 | 22,736 | 28,085 | |||||||||||||||||||
Net income attributable to Ares Operating Group entities | 296,400 | — | — | 296,400 | |||||||||||||||||||
Less: Net loss attributable to redeemable interest in Ares Operating Group entities | (976) | — | — | (976) | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 145,234 | — | 0 | 145,234 | |||||||||||||||||||
Net income attributable to Ares Management Corporation | 152,142 | — | — | 152,142 | |||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | — | 0 | 21,700 | |||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 130,442 | $ | — | $ | 0 | $ | 130,442 |
For the Year Ended December 31, 2018 | |||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||
Revenues | |||||||||||||||
Management fees (includes ARCC Part I Fees of $128,805) | $ | 836,744 | $ | — | $ | (34,242 | ) | $ | 802,502 | ||||||
Carried interest allocation | 42,410 | — | — | 42,410 | |||||||||||
Incentive fees | 67,380 | — | (4,000 | ) | 63,380 | ||||||||||
Principal investment income | 1,047 | — | (2,502 | ) | (1,455 | ) | |||||||||
Administrative, transaction and other fees | 51,624 | — | — | 51,624 | |||||||||||
Total revenues | 999,205 | — | (40,744 | ) | 958,461 | ||||||||||
Expenses | |||||||||||||||
Compensation and benefits | 570,380 | — | — | 570,380 | |||||||||||
Performance related compensation | 30,254 | — | — | 30,254 | |||||||||||
General, administrative and other expense | 215,964 | — | — | 215,964 | |||||||||||
Expenses of Consolidated Funds | — | 92,006 | (38,242 | ) | 53,764 | ||||||||||
Total expenses | 816,598 | 92,006 | (38,242 | ) | 870,362 | ||||||||||
Other income (expense) | |||||||||||||||
Net realized and unrealized loss on investments | (2,867 | ) | — | 983 | (1,884 | ) | |||||||||
Interest and dividend income | 7,121 | — | (93 | ) | 7,028 | ||||||||||
Interest expense | (21,448 | ) | — | — | (21,448 | ) | |||||||||
Other income (expense), net | (1,715 | ) | — | 864 | (851 | ) | |||||||||
Net realized and unrealized gain (loss) on investments of Consolidated Funds | — | 664 | (2,247 | ) | (1,583 | ) | |||||||||
Interest and other income of Consolidated Funds | — | 337,875 | — | 337,875 | |||||||||||
Interest expense of Consolidated Funds | — | (224,253 | ) | 1,358 | (222,895 | ) | |||||||||
Total other income (loss) | (18,909 | ) | 114,286 | 865 | 96,242 | ||||||||||
Income before taxes | 163,698 | 22,280 | (1,637 | ) | 184,341 | ||||||||||
Income tax expense | 32,071 | 131 | — | 32,202 | |||||||||||
Net income | 131,627 | 22,149 | (1,637 | ) | 152,139 | ||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | — | 22,149 | (1,637 | ) | 20,512 | ||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 74,607 | — | — | 74,607 | |||||||||||
Net income attributable to Ares Management Corporation | 57,020 | — | — | 57,020 | |||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | — | — | 21,700 | |||||||||||
Net income attributable to Ares Management Corporation Class A common stock | $ | 35,320 | $ | — | $ | — | $ | 35,320 |
Year ended December 31, 2019 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $164,396) | $ | 1,014,337 | $ | — | $ | (34,920) | $ | 979,417 | |||||||||||||||
Carried interest allocation | 621,872 | — | 0 | 621,872 | |||||||||||||||||||
Incentive fees | 83,048 | — | (13,851) | 69,197 | |||||||||||||||||||
Principal investment income | 44,320 | — | 12,235 | 56,555 | |||||||||||||||||||
Administrative, transaction and other fees | 51,038 | — | (12,641) | 38,397 | |||||||||||||||||||
Total revenues | 1,814,615 | — | (49,177) | 1,765,438 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Compensation and benefits | 653,352 | — | 0 | 653,352 | |||||||||||||||||||
Performance related compensation | 497,181 | — | 0 | 497,181 | |||||||||||||||||||
General, administrative and other expense | 270,219 | — | 0 | 270,219 | |||||||||||||||||||
Expenses of the Consolidated Funds | — | 90,816 | (48,771) | 42,045 | |||||||||||||||||||
Total expenses | 1,420,752 | 90,816 | (48,771) | 1,462,797 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Net realized and unrealized gains on investments | 10,405 | — | (851) | 9,554 | |||||||||||||||||||
Interest and dividend income | 9,599 | — | (2,093) | 7,506 | |||||||||||||||||||
Interest expense | (19,671) | — | — | (19,671) | |||||||||||||||||||
Other expense, net | (8,190) | — | 350 | (7,840) | |||||||||||||||||||
Net realized and unrealized gains on investments of the Consolidated Funds | — | 3,312 | 11,824 | 15,136 | |||||||||||||||||||
Interest and other income of the Consolidated Funds | — | 395,599 | 0 | 395,599 | |||||||||||||||||||
Interest expense of the Consolidated Funds | — | (281,506) | 3,761 | (277,745) | |||||||||||||||||||
Total other income (expense) | (7,857) | 117,405 | 12,991 | 122,539 | |||||||||||||||||||
Income before taxes | 386,006 | 26,589 | 12,585 | 425,180 | |||||||||||||||||||
Income tax expense (benefit) | 52,906 | (530) | 0 | 52,376 | |||||||||||||||||||
Net income | 333,100 | 27,119 | 12,585 | 372,804 | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | — | 27,119 | 12,585 | 39,704 | |||||||||||||||||||
Net income attributable to Ares Operating Group entities | 333,100 | — | — | 333,100 | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 184,216 | — | 0 | 184,216 | |||||||||||||||||||
Net income attributable to Ares Management Corporation | 148,884 | — | — | 148,884 | |||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | — | 0 | 21,700 | |||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 127,184 | $ | — | $ | 0 | $ | 127,184 |
For the Year Ended December 31, 2017 | |||||||||||||||||
As adjusted | |||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||
Revenues | |||||||||||||||||
Management fees (includes ARCC Part I Fees of $105,467) | $ | 744,825 | $ | — | $ | (22,406 | ) | $ | 722,419 | ||||||||
Carried interest allocation | 621,471 | — | (1,017 | ) | 620,454 | ||||||||||||
Incentive fees | 20,295 | — | (4,075 | ) | 16,220 | ||||||||||||
Principal investment income | 89,031 | — | (24,587 | ) | 64,444 | ||||||||||||
Administrative, transaction and other fees | 56,406 | — | — | 56,406 | |||||||||||||
Total revenues | 1,532,028 | — | (52,085 | ) | 1,479,943 | ||||||||||||
Expenses | |||||||||||||||||
Compensation and benefits | 514,109 | — | — | 514,109 | |||||||||||||
Performance related compensation | 479,722 | — | — | 479,722 | |||||||||||||
General, administrative and other expense | 196,730 | — | — | 196,730 | |||||||||||||
Transaction support expense | 275,177 | — | — | 275,177 | |||||||||||||
Expenses of Consolidated Funds | — | 65,501 | (26,481 | ) | 39,020 | ||||||||||||
Total expenses | 1,465,738 | 65,501 | (26,481 | ) | 1,504,758 | ||||||||||||
Other income (expense) | |||||||||||||||||
Net realized and unrealized gain on investments | 13,565 | — | (5,303 | ) | 8,262 | ||||||||||||
Interest and dividend income | 9,048 | — | (2,005 | ) | 7,043 | ||||||||||||
Interest expense | (21,219 | ) | — | — | (21,219 | ) | |||||||||||
Other income, net | 19,470 | — | — | 19,470 | |||||||||||||
Net realized and unrealized gain on investments of Consolidated Funds | — | 126,836 | (26,712 | ) | 100,124 | ||||||||||||
Interest and other income of Consolidated Funds | — | 187,721 | — | 187,721 | |||||||||||||
Interest expense of Consolidated Funds | — | (159,688 | ) | 32,961 | (126,727 | ) | |||||||||||
Total other income | 20,864 | 154,869 | (1,059 | ) | 174,674 | ||||||||||||
Income before taxes | 87,154 | 89,368 | (26,663 | ) | 149,859 | ||||||||||||
Income tax expense (benefit) | (24,939 | ) | 1,887 | — | (23,052 | ) | |||||||||||
Net income | 112,093 | 87,481 | (26,663 | ) | 172,911 | ||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | — | 87,481 | (26,663 | ) | 60,818 | ||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 35,915 | — | — | 35,915 | |||||||||||||
Net income attributable to Ares Management, L.P. | 76,178 | — | — | 76,178 | |||||||||||||
Less: Preferred equity dividends paid | 21,700 | — | — | — | — | 21,700 | |||||||||||
Net income attributable to Ares Management, L.P. common shareholders | $ | 54,478 | $ | — | $ | — | $ | 54,478 |
Year ended December 31, 2018 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $128,805) | $ | 836,744 | $ | — | $ | (34,242) | $ | 802,502 | |||||||||||||||
Carried interest allocation | 42,410 | — | 0 | 42,410 | |||||||||||||||||||
Incentive fees | 67,380 | — | (4,000) | 63,380 | |||||||||||||||||||
Principal investment income | 1,047 | — | (2,502) | (1,455) | |||||||||||||||||||
Administrative, transaction and other fees | 51,624 | — | 0 | 51,624 | |||||||||||||||||||
Total revenues | 999,205 | — | (40,744) | 958,461 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Compensation and benefits | 570,380 | — | 0 | 570,380 | |||||||||||||||||||
Performance related compensation | 30,254 | — | 0 | 30,254 | |||||||||||||||||||
General, administrative and other expense | 215,964 | — | 0 | 215,964 | |||||||||||||||||||
Expenses of the Consolidated Funds | 0 | 92,006 | (38,242) | 53,764 | |||||||||||||||||||
Total expenses | 816,598 | 92,006 | (38,242) | 870,362 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Net realized and unrealized losses on investments | (2,867) | — | 983 | (1,884) | |||||||||||||||||||
Interest and dividend income | 7,121 | — | (93) | 7,028 | |||||||||||||||||||
Interest expense | (21,448) | — | — | (21,448) | |||||||||||||||||||
Other expense, net | (1,715) | — | 864 | (851) | |||||||||||||||||||
Net realized and unrealized gains (losses) on investments of the Consolidated Funds | — | 664 | (2,247) | (1,583) | |||||||||||||||||||
Interest and other income of the Consolidated Funds | — | 337,875 | 0 | 337,875 | |||||||||||||||||||
Interest expense of the Consolidated Funds | — | (224,253) | 1,358 | (222,895) | |||||||||||||||||||
Total other income (expense) | (18,909) | 114,286 | 865 | 96,242 | |||||||||||||||||||
Income before taxes | 163,698 | 22,280 | (1,637) | 184,341 | |||||||||||||||||||
Income tax expense | 32,071 | 131 | 0 | 32,202 | |||||||||||||||||||
Net income | 131,627 | 22,149 | (1,637) | 152,139 | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | — | 22,149 | (1,637) | 20,512 | |||||||||||||||||||
Net income attributable to Ares Operating Group entities | 131,627 | — | — | 131,627 | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 74,607 | — | 0 | 74,607 | |||||||||||||||||||
Net income attributable to Ares Management Corporation | 57,020 | — | — | 57,020 | |||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 21,700 | — | 0 | 21,700 | |||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 35,320 | $ | — | $ | 0 | $ | 35,320 | |||||||||||||||
For the Year Ended December 31, 2016 | |||||||||||||||
As adjusted | |||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||
Revenues | |||||||||||||||
Management fees (includes ARCC Part I Fees of $121,181) | $ | 659,451 | $ | — | $ | (17,383 | ) | $ | 642,068 | ||||||
Carried interest allocation | 491,654 | — | 2,926 | 494,580 | |||||||||||
Incentive fees | 27,337 | — | (4,065 | ) | 23,272 | ||||||||||
Principal investment income | 50,408 | — | 4,760 | 55,168 | |||||||||||
Administrative, transaction and other fees | 39,285 | — | — | 39,285 | |||||||||||
Total revenues | 1,268,135 | — | (13,762 | ) | 1,254,373 | ||||||||||
Expenses | |||||||||||||||
Compensation and benefits | 447,725 | — | — | 447,725 | |||||||||||
Performance related compensation | 387,846 | — | — | 387,846 | |||||||||||
General, administrative and other expense | 159,776 | — | — | 159,776 | |||||||||||
Expenses of Consolidated Funds | — | 42,520 | (21,447 | ) | 21,073 | ||||||||||
Total expenses | 995,347 | 42,520 | (21,447 | ) | 1,016,420 | ||||||||||
Other income (expense) | |||||||||||||||
Net realized and unrealized loss on investments | (3,220 | ) | — | (4,409 | ) | (7,629 | ) | ||||||||
Interest and dividend income | 8,034 | — | (3,541 | ) | 4,493 | ||||||||||
Interest expense | (17,981 | ) | — | — | (17,981 | ) | |||||||||
Other income, net | 35,650 | — | — | 35,650 | |||||||||||
Net realized and unrealized loss on investments of Consolidated Funds | — | (2,999 | ) | 942 | (2,057 | ) | |||||||||
Interest and other income of Consolidated Funds | — | 138,943 | — | 138,943 | |||||||||||
Interest expense of Consolidated Funds | — | (98,556 | ) | 7,104 | (91,452 | ) | |||||||||
Total other income | 22,483 | 37,388 | 96 | 59,967 | |||||||||||
Income (loss) before taxes | 295,271 | (5,132 | ) | 7,781 | 297,920 | ||||||||||
Income tax expense (benefit) | 11,756 | (737 | ) | — | 11,019 | ||||||||||
Net income (loss) | 283,515 | (4,395 | ) | 7,781 | 286,901 | ||||||||||
Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds | — | (4,395 | ) | 7,781 | 3,386 | ||||||||||
Less: Net income attributable to redeemable interests in Ares Operating Group entities | 456 | — | — | 456 | |||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 171,251 | — | — | 171,251 | |||||||||||
Net income attributable to Ares Management, L.P. | 111,808 | — | — | 111,808 | |||||||||||
Less: Preferred equity dividends paid | 12,176 | — | — | 12,176 | |||||||||||
Net income attributable to Ares Management, L.P. common shareholders | $ | 99,632 | $ | — | $ | — | $ | 99,632 |
Year ended December 31, 2020 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 296,400 | $ | 5,349 | $ | 22,736 | $ | 324,485 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||||||||
Equity compensation expense | 122,986 | — | 0 | 122,986 | |||||||||||||||||||
Depreciation and amortization | 41,248 | — | 0 | 41,248 | |||||||||||||||||||
Net realized and unrealized (gains) losses on investments | 20,651 | — | (28,690) | (8,039) | |||||||||||||||||||
Investments purchased | (352,750) | — | 261,899 | (90,851) | |||||||||||||||||||
Proceeds from sale of investments | 207,986 | — | (33,307) | 174,679 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used) in operating activities allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||
Net realized and unrealized losses on investments | — | 109,387 | (12,523) | 96,864 | |||||||||||||||||||
Other non-cash amounts | — | (34,297) | 0 | (34,297) | |||||||||||||||||||
Investments purchased | — | (6,580,784) | (34,948) | (6,615,732) | |||||||||||||||||||
Proceeds from sale of investments | — | 5,502,325 | 0 | 5,502,325 | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities : | |||||||||||||||||||||||
Net performance income receivable | (24,351) | — | 0 | (24,351) | |||||||||||||||||||
Due to/from affiliates | (82,222) | — | 6,037 | (76,185) | |||||||||||||||||||
Other assets | (34,523) | — | (2,170) | (36,693) | |||||||||||||||||||
Accrued compensation and benefits | 54,539 | — | 0 | 54,539 | |||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 31,240 | — | (10,205) | 21,035 | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds: | |||||||||||||||||||||||
Change in cash and cash equivalents held at Consolidated Funds | — | 0 | 83,944 | 83,944 | |||||||||||||||||||
Net cash acquired with consolidation/deconsolidation of Consolidated Funds | — | 60,895 | 0 | 60,895 | |||||||||||||||||||
Change in other assets and receivables held at Consolidated Funds | — | (55,461) | 22,163 | (33,298) | |||||||||||||||||||
Change in other liabilities and payables held at Consolidated Funds | — | 10,787 | 0 | 10,787 | |||||||||||||||||||
Net cash provided by (used in) operating activities | 281,204 | (981,799) | 274,936 | (425,659) | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | (15,942) | — | — | (15,942) | |||||||||||||||||||
Acquisitions, net of cash acquired | (120,822) | — | — | (120,822) | |||||||||||||||||||
Net cash used in investing activities | (136,764) | — | — | (136,764) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Net proceeds from issuance of Class A common stock | 383,154 | — | — | 383,154 | |||||||||||||||||||
Proceeds from credit facility | 790,000 | — | — | 790,000 | |||||||||||||||||||
Proceeds from senior notes | 399,084 | — | — | 399,084 | |||||||||||||||||||
Repayments of credit facility | (860,000) | — | — | (860,000) | |||||||||||||||||||
Dividends and distributions | (446,780) | — | — | (446,780) | |||||||||||||||||||
Series A Preferred Stock dividends | (21,700) | — | — | (21,700) | |||||||||||||||||||
Stock option exercises | 92,877 | — | — | 92,877 | |||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (95,368) | — | — | (95,368) | |||||||||||||||||||
Other financing activities | (1,531) | — | — | (1,531) | |||||||||||||||||||
Allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||
Contributions from non-controlling interests in Consolidated Funds | — | 359,381 | (226,951) | 132,430 | |||||||||||||||||||
Distributions to non-controlling interests in Consolidated Funds | — | (287,467) | 35,960 | (251,507) | |||||||||||||||||||
Borrowings under loan obligations by Consolidated Funds | — | 1,013,291 | — | 1,013,291 | |||||||||||||||||||
Repayments under loan obligations by Consolidated Funds | — | (190,055) | — | (190,055) | |||||||||||||||||||
Net cash provided by financing activities | 239,736 | 895,150 | (190,991) | 943,895 | |||||||||||||||||||
Effect of exchange rate changes | 17,252 | 2,704 | 0 | 19,956 | |||||||||||||||||||
Net change in cash and cash equivalents | 401,428 | (83,945) | 83,945 | 401,428 | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 138,384 | 606,321 | (606,321) | 138,384 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 539,812 | $ | 522,376 | $ | (522,376) | $ | 539,812 | |||||||||||||||
Supplemental disclosure of non-cash financing activities: | |||||||||||||||||||||||
Issuance of Class A common stock in connection with acquisitions | $ | 305,338 | $ | — | $ | — | $ | 305,338 | |||||||||||||||
Supplemental information of cash flow information: | |||||||||||||||||||||||
Cash paid during the period for interest | $ | 22,127 | $ | 235,005 | $ | — | $ | 257,132 | |||||||||||||||
Cash paid during the period for income taxes | $ | 38,005 | $ | 169 | $ | — | $ | 38,174 | |||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 333,100 | $ | 27,119 | $ | 12,585 | $ | 372,804 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||||||||
Equity compensation expense | 97,691 | — | 0 | 97,691 | |||||||||||||||||||
Depreciation and amortization | 39,459 | — | 0 | 39,459 | |||||||||||||||||||
Net realized and unrealized gains on investments | (37,211) | — | (15,881) | (53,092) | |||||||||||||||||||
Investments purchased | (401,266) | — | 122,468 | (278,798) | |||||||||||||||||||
Proceeds from sale of investments | 395,997 | — | (111,187) | 284,810 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||
Net realized and unrealized gains on investments | — | (3,312) | (11,824) | (15,136) | |||||||||||||||||||
Other non-cash amounts | — | (8,383) | 0 | (8,383) | |||||||||||||||||||
Investments purchased | — | (5,310,296) | 93,365 | (5,216,931) | |||||||||||||||||||
Proceeds from sale of investments | — | 3,077,755 | 0 | 3,077,755 | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities: | |||||||||||||||||||||||
Net performance income receivable | (103,962) | — | 0 | (103,962) | |||||||||||||||||||
Due to/from affiliates | (80,689) | — | 5,551 | (75,138) | |||||||||||||||||||
Other assets | 24,303 | — | 2,381 | 26,684 | |||||||||||||||||||
Accrued compensation and benefits | 7,650 | — | 0 | 7,650 | |||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 30,669 | — | 0 | 30,669 | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds: | |||||||||||||||||||||||
Change in cash and cash equivalents held at Consolidated Funds | — | 0 | (221,677) | (221,677) | |||||||||||||||||||
Cash relinquished with deconsolidation of Consolidated Funds | — | (81,059) | 0 | (81,059) | |||||||||||||||||||
Change in other assets and receivables held at Consolidated Funds | — | (51,681) | (3,153) | (54,834) | |||||||||||||||||||
Change in other liabilities and payables held at Consolidated Funds | — | 88,467 | 0 | 88,467 | |||||||||||||||||||
Net cash provided by (used in) operating activities | 305,741 | (2,261,390) | (127,372) | (2,083,021) | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | (16,796) | — | — | (16,796) | |||||||||||||||||||
Net cash used in investing activities | (16,796) | — | — | (16,796) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of Class A common stock | 206,705 | — | — | 206,705 | |||||||||||||||||||
Proceeds from credit facility | 335,000 | — | — | 335,000 | |||||||||||||||||||
Repayments of credit facility | (500,000) | — | — | (500,000) | |||||||||||||||||||
Dividends and distributions | (323,667) | — | — | (323,667) | |||||||||||||||||||
Series A Preferred Stock dividends | (21,700) | — | — | (21,700) | |||||||||||||||||||
Repurchases of Class A common stock | (10,449) | — | — | (10,449) | |||||||||||||||||||
Stock option exercises | 90,511 | — | — | 90,511 | |||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (33,554) | — | — | (33,554) | |||||||||||||||||||
Other financing activities | (3,212) | — | — | (3,212) | |||||||||||||||||||
Allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||
Contributions from non-controlling interests in Consolidated Funds | — | 290,677 | (117,826) | 172,851 | |||||||||||||||||||
Distributions to non-controlling interests in Consolidated Funds | — | (117,599) | 21,317 | (96,282) | |||||||||||||||||||
Borrowings under loan obligations by Consolidated Funds | — | 3,349,654 | (7,817) | 3,341,837 | |||||||||||||||||||
Repayments under loan obligations by Consolidated Funds | — | (1,045,731) | 10,021 | (1,035,710) | |||||||||||||||||||
Net cash provided by (used in) financing activities | (260,366) | 2,477,001 | (94,305) | 2,122,330 | |||||||||||||||||||
Effect of exchange rate changes | (442) | 6,066 | 0 | 5,624 | |||||||||||||||||||
Net change in cash and cash equivalents | 28,137 | 221,677 | (221,677) | 28,137 | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 110,247 | 384,644 | (384,644) | 110,247 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 138,384 | $ | 606,321 | $ | (606,321) | $ | 138,384 | |||||||||||||||
Supplemental information of cash flow information: | |||||||||||||||||||||||
Cash paid during the period for interest | $ | 17,922 | $ | 215,168 | $ | — | $ | 233,090 | |||||||||||||||
Cash paid during the period for income taxes | $ | 35,021 | $ | 604 | $ | — | $ | 35,625 |
Year ended December 31, 2018 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 131,627 | $ | 22,149 | $ | (1,637) | $ | 152,139 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||||||||
Equity compensation expense | 89,724 | — | 0 | 89,724 | |||||||||||||||||||
Depreciation and amortization | 28,517 | — | 0 | 28,517 | |||||||||||||||||||
Net realized and unrealized losses on investments | 15,938 | — | (3,003) | 12,935 | |||||||||||||||||||
Other non-cash amounts | 10 | — | 0 | 10 | |||||||||||||||||||
Investments purchased | (283,514) | — | 35,054 | (248,460) | |||||||||||||||||||
Proceeds from sale of investments | 415,894 | — | (34,191) | 381,703 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||
Net realized and unrealized (gains) losses on investments | — | (665) | 2,248 | 1,583 | |||||||||||||||||||
Other non-cash amounts | — | (4,519) | 0 | (4,519) | |||||||||||||||||||
Investments purchased | — | (4,919,118) | 0 | (4,919,118) | |||||||||||||||||||
Proceeds from sale of investments | — | 2,756,924 | 0 | 2,756,924 | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities: | |||||||||||||||||||||||
Net performance income receivable | 34,911 | — | (5,333) | 29,578 | |||||||||||||||||||
Due to/from affiliates | 30,429 | — | 2,594 | 33,023 | |||||||||||||||||||
Other assets | (66,795) | — | 0 | (66,795) | |||||||||||||||||||
Accrued compensation and benefits | 114 | — | 0 | 114 | |||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 2,306 | — | 0 | 2,306 | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds: | |||||||||||||||||||||||
Change in cash and cash equivalents held at Consolidated Funds | — | 0 | 171,856 | 171,856 | |||||||||||||||||||
Cash acquired with consolidation of Consolidated Funds | — | 11,915 | 0 | 11,915 | |||||||||||||||||||
Change in other assets and receivables held at Consolidated Funds | — | 9,224 | 2,738 | 11,962 | |||||||||||||||||||
Change in other liabilities and payables held at Consolidated Funds | — | 137,545 | 0 | 137,545 | |||||||||||||||||||
Net cash provided by (used in) operating activities | 399,161 | (1,986,545) | 170,326 | (1,417,058) | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | (18,419) | — | — | (18,419) | |||||||||||||||||||
Net cash used in investing activities | (18,419) | — | — | (18,419) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of Class A common stock | 105,333 | — | — | 105,333 | |||||||||||||||||||
Proceeds from credit facility | 680,000 | — | — | 680,000 | |||||||||||||||||||
Repayments of term notes | (206,089) | — | — | (206,089) | |||||||||||||||||||
Proceeds from term notes | 44,050 | — | — | 44,050 | |||||||||||||||||||
Repayments of credit facility | (655,000) | — | — | (655,000) | |||||||||||||||||||
Dividends and distributions | (312,646) | — | — | (312,646) | |||||||||||||||||||
Series A Preferred Stock dividends | (21,700) | — | — | (21,700) | |||||||||||||||||||
Stock option exercises | 950 | — | — | 950 | |||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (18,014) | — | — | (18,014) | |||||||||||||||||||
Other financing activities | 3,128 | — | — | 3,128 | |||||||||||||||||||
Allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||
Contributions from non-controlling interests in Consolidated Funds | — | 85,681 | (14,672) | 71,009 | |||||||||||||||||||
Distributions to non-controlling interests in Consolidated Funds | — | (195,438) | 35,728 | (159,710) | |||||||||||||||||||
Borrowings under loan obligations by Consolidated Funds | — | 2,921,159 | (19,526) | 2,901,633 | |||||||||||||||||||
Repayments under loan obligations by Consolidated Funds | — | (1,027,649) | 0 | (1,027,649) | |||||||||||||||||||
Net cash provided by (used in) financing activities | (379,988) | 1,783,753 | 1,530 | 1,405,295 | |||||||||||||||||||
Effect of exchange rate changes | (9,436) | 30,936 | 0 | 21,500 | |||||||||||||||||||
Net change in cash and cash equivalents | (8,682) | (171,855) | 171,855 | (8,682) | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 118,929 | 556,500 | (556,500) | 118,929 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 110,247 | $ | 384,644 | $ | (384,644) | $ | 110,247 | |||||||||||||||
Supplemental information: | |||||||||||||||||||||||
Cash paid during the period for interest | $ | 19,881 | $ | 165,070 | $ | — | $ | 184,951 | |||||||||||||||
Cash paid during the period for income taxes | $ | 26,740 | $ | 742 | $ | — | $ | 27,482 |
For the Three Months Ended | |||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | ||||||||||||
Revenues | $ | 266,089 | $ | 204,163 | $ | 240,777 | $ | 247,432 | |||||||
Expenses | 206,283 | 221,017 | 227,188 | 215,874 | |||||||||||
Other income | 2,240 | 67,926 | 38,754 | (12,678 | ) | ||||||||||
Income before provision for income taxes | 62,046 | 51,072 | 52,343 | 18,880 | |||||||||||
Net income | 74,421 | 14,169 | 47,212 | 16,337 | |||||||||||
Net income (loss) attributable to Ares Management Corporation(1) | 40,948 | (11,775 | ) | 15,910 | 11,937 | ||||||||||
Series A Preferred Stock dividends paid | 5,425 | 5,425 | 5,425 | 5,425 | |||||||||||
Net income (loss) attributable to Ares Management Corporation Class A common stockholders(1) | 35,523 | (17,200 | ) | 10,485 | 6,512 | ||||||||||
Net income (loss) attributable to Ares Management Corporation per share of Class A common stock(1): | |||||||||||||||
Basic | $ | 0.39 | $ | (0.20 | ) | $ | 0.09 | $ | 0.05 | ||||||
Diluted | $ | 0.28 | $ | (0.20 | ) | $ | 0.09 | $ | 0.05 | ||||||
Dividends declared per share of Class A common stock(1) | $ | 0.24 | $ | 0.28 | $ | 0.28 | $ | 0.28 |
For the Three Months Ended | |||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | ||||||||||||
As adjusted | |||||||||||||||
Revenues | $ | 244,244 | $ | 572,197 | $ | 288,402 | $ | 375,100 | |||||||
Expenses | 491,467 | 448,197 | 254,127 | 310,967 | |||||||||||
Other income (loss) | 56,635 | (8,920 | ) | 54,149 | 72,810 | ||||||||||
Income (loss) before provision for income taxes | (190,588 | ) | 115,080 | 88,424 | 136,943 | ||||||||||
Net income (loss) | (156,324 | ) | 113,827 | 83,872 | 131,536 | ||||||||||
Net income (loss) attributable to Ares Management, L.P. | (41,134 | ) | 49,878 | 27,838 | 39,596 | ||||||||||
Preferred equity dividends paid | 5,425 | 5,425 | 5,425 | 5,425 | |||||||||||
Net income (loss) attributable to Ares Management, L.P. common shareholders | (46,559 | ) | 44,453 | 22,413 | 34,171 | ||||||||||
Net income (loss) attributable to Ares Management L.P. per common share: | |||||||||||||||
Basic | $ | (0.58 | ) | $ | 0.54 | $ | 0.26 | $ | 0.40 | ||||||
Diluted | $ | (0.58 | ) | $ | 0.53 | $ | 0.26 | $ | 0.39 | ||||||
Dividends declared per common share(2) | $ | 0.13 | $ | 0.31 | $ | 0.41 | $ | 0.25 |