QUARTERLY 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 Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A common stock, par value $0.01 per share | 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 | ||||||||||
As of March 31, | As of December 31, | |||||||||||||||||
As of September 30, | As of December 31, | |||||||||||||||||
2017 | 2016 | 2021 | 2020 | |||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||
Assets | Assets | |||||||||||||||||
Cash and cash equivalents | $ | 186,437 | $ | 342,861 | Cash and cash equivalents | $ | 609,872 | $ | 539,812 | |||||||||
Investments (includes fair value investments of $581,614 and $448,336 at September 30, 2017 and December 31, 2016, respectively) | 584,695 | 468,471 | ||||||||||||||||
Performance fees receivable | 997,578 | 759,099 | ||||||||||||||||
Investments (includes accrued carried interest of $1,369,684 and $1,145,853 at March 31, 2021 and December 31, 2020, respectively) | Investments (includes accrued carried interest of $1,369,684 and $1,145,853 at March 31, 2021 and December 31, 2020, respectively) | 1,931,978 | 1,682,759 | |||||||||||||||
Due from affiliates | 161,432 | 162,936 | Due from affiliates | 335,450 | 405,887 | |||||||||||||
Deferred tax asset, net | 36,661 | 6,731 | ||||||||||||||||
Other assets | 103,885 | 65,565 | Other assets | 779,941 | 812,419 | |||||||||||||
Intangible assets, net | 44,115 | 58,315 | ||||||||||||||||
Goodwill | 143,880 | 143,724 | ||||||||||||||||
Right-of-use operating lease assets | Right-of-use operating lease assets | 157,908 | 154,742 | |||||||||||||||
Assets of Consolidated Funds: | Assets of Consolidated Funds: | |||||||||||||||||
Cash and cash equivalents | 799,609 | 455,280 | Cash and cash equivalents | 557,271 | 522,377 | |||||||||||||
U.S. Treasury securities, at fair value | U.S. Treasury securities, at fair value | 1,000,040 | 0 | |||||||||||||||
Investments, at fair value | 4,915,029 | 3,330,203 | Investments, at fair value | 10,948,173 | 10,877,097 | |||||||||||||
Due from affiliates | 8,047 | 3,592 | Due from affiliates | 16,240 | 17,172 | |||||||||||||
Dividends and interest receivable | 10,061 | 8,479 | ||||||||||||||||
Receivable for securities sold | 25,926 | 21,955 | Receivable for securities sold | 166,960 | 121,225 | |||||||||||||
Other assets | 2,082 | 2,501 | Other assets | 32,096 | 35,502 | |||||||||||||
Total assets | $ | 8,019,437 | $ | 5,829,712 | Total assets | $ | 16,535,929 | $ | 15,168,992 | |||||||||
Liabilities | Liabilities | |||||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 94,351 | $ | 83,336 | Accounts payable, accrued expenses and other liabilities | $ | 119,578 | $ | 115,289 | |||||||||
Accrued compensation | 133,799 | 131,736 | Accrued compensation | 89,791 | 103,010 | |||||||||||||
Due to affiliates | 17,207 | 17,564 | Due to affiliates | 77,817 | 100,186 | |||||||||||||
Performance fee compensation payable | 780,201 | 598,050 | ||||||||||||||||
Performance related compensation payable | Performance related compensation payable | 968,582 | 813,378 | |||||||||||||||
Debt obligations | 486,007 | 305,784 | Debt obligations | 811,279 | 642,998 | |||||||||||||
Operating lease liabilities | Operating lease liabilities | 186,594 | 180,236 | |||||||||||||||
Liabilities of Consolidated Funds: | Liabilities of Consolidated Funds: | |||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 50,992 | 21,056 | Accounts payable, accrued expenses and other liabilities | 98,473 | 46,824 | |||||||||||||
Due to affiliates | Due to affiliates | 622 | 0 | |||||||||||||||
Payable for securities purchased | 481,055 | 208,742 | Payable for securities purchased | 781,845 | 514,946 | |||||||||||||
CLO loan obligations, at fair value | 4,476,643 | 3,031,112 | CLO loan obligations, at fair value | 9,839,639 | 9,958,076 | |||||||||||||
Fund borrowings | 121,261 | 55,070 | Fund borrowings | 110,409 | 121,909 | |||||||||||||
Total liabilities | 6,641,516 | 4,452,450 | Total liabilities | 13,084,629 | 12,596,852 | |||||||||||||
Commitments and contingencies | Commitments and contingencies | 0 | 0 | |||||||||||||||
Preferred equity (12,400,000 units issued and outstanding at September 30, 2017 and December 31, 2016) | 298,761 | 298,761 | ||||||||||||||||
Non-controlling interest in Consolidated Funds | 459,723 | 338,035 | ||||||||||||||||
Non-controlling interest in Ares Operating Group entities | 348,513 | 447,615 | ||||||||||||||||
Controlling interest in Ares Management, L.P.: | ||||||||||||||||||
Partners' capital (82,211,302 units and 80,814,732 units issued and outstanding at September 30, 2017 and at December 31, 2016, respectively) | 275,410 | 301,790 | ||||||||||||||||
Accumulated other comprehensive loss, net of tax | (4,486 | ) | (8,939 | ) | ||||||||||||||
Total controlling interest in Ares Management, L.P. | 270,924 | 292,851 | ||||||||||||||||
Redeemable interest in Consolidated Funds | Redeemable interest in Consolidated Funds | 930,924 | 0 | |||||||||||||||
Redeemable interest in Ares Operating Group entities | Redeemable interest in Ares Operating Group entities | 99,808 | 100,366 | |||||||||||||||
Non-controlling interests in Consolidated Funds | Non-controlling interests in Consolidated Funds | 552,688 | 539,720 | |||||||||||||||
Non-controlling interests in Ares Operating Group entities | Non-controlling interests in Ares Operating Group entities | 706,381 | 738,369 | |||||||||||||||
Stockholders' Equity | Stockholders' Equity | |||||||||||||||||
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (12,400,000 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively) | Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (12,400,000 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively) | 298,761 | 298,761 | |||||||||||||||
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (149,840,978 shares and 147,182,562 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively) | Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (149,840,978 shares and 147,182,562 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively) | 1,498 | 1,472 | |||||||||||||||
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding at March 31, 2021 and December 31, 2020) | Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding at March 31, 2021 and December 31, 2020) | 0 | 0 | |||||||||||||||
Class C common stock, $0.01 par value, 499,999,000 shares authorized (112,163,894 shares and 112,447,618 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively) | Class C common stock, $0.01 par value, 499,999,000 shares authorized (112,163,894 shares and 112,447,618 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively) | 1,122 | 1,124 | |||||||||||||||
Additional paid-in-capital | Additional paid-in-capital | 1,033,735 | 1,043,669 | |||||||||||||||
Retained earnings | Retained earnings | (173,555) | (151,824) | |||||||||||||||
Accumulated other comprehensive income (loss), net of tax | Accumulated other comprehensive income (loss), net of tax | (62) | 483 | |||||||||||||||
Total stockholders' equity | Total stockholders' equity | 1,161,499 | 1,193,685 | |||||||||||||||
Total equity | 1,377,921 | 1,377,262 | Total equity | 2,420,568 | 2,471,774 | |||||||||||||
Total liabilities and equity | $ | 8,019,437 | $ | 5,829,712 | ||||||||||||||
Total liabilities, redeemable interest, non-controlling interests and equity | Total liabilities, redeemable interest, non-controlling interests and equity | $ | 16,535,929 | $ | 15,168,992 |
Three months ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Management fees | $ | 320,273 | $ | 263,849 | |||||||||||||||||||||||||
Carried interest allocation | 297,535 | (230,876) | |||||||||||||||||||||||||||
Incentive fees | 2,820 | (3,249) | |||||||||||||||||||||||||||
Principal investment income (loss) | 25,100 | (26,723) | |||||||||||||||||||||||||||
Administrative, transaction and other fees | 12,660 | 10,408 | |||||||||||||||||||||||||||
Total revenues | 658,388 | 13,409 | |||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Compensation and benefits | 231,850 | 180,084 | |||||||||||||||||||||||||||
Performance related compensation | 221,432 | (167,899) | |||||||||||||||||||||||||||
General, administrative and other expenses | 67,656 | 62,331 | |||||||||||||||||||||||||||
Expenses of Consolidated Funds | 4,171 | 7,443 | |||||||||||||||||||||||||||
Total expenses | 525,109 | 81,959 | |||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 5,433 | (8,034) | |||||||||||||||||||||||||||
Interest and dividend income | 960 | 1,790 | |||||||||||||||||||||||||||
Interest expense | (6,695) | (5,306) | |||||||||||||||||||||||||||
Other income (expense), net | (4,149) | 5,464 | |||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | 16,422 | (254,761) | |||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 115,839 | 113,225 | |||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (71,025) | (80,241) | |||||||||||||||||||||||||||
Total other income (expense) | 56,785 | (227,863) | |||||||||||||||||||||||||||
Income (loss) before taxes | 190,064 | (296,413) | |||||||||||||||||||||||||||
Income tax expense (benefit) | 25,754 | (20,616) | |||||||||||||||||||||||||||
Net income (loss) | 164,310 | (275,797) | |||||||||||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds | 49,858 | (166,406) | |||||||||||||||||||||||||||
Net income (loss) attributable to Ares Operating Group entities | 114,452 | (109,391) | |||||||||||||||||||||||||||
Less: Net income attributable to redeemable interest in Ares Operating Group entities | 32 | 0 | |||||||||||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests in Ares Operating Group entities | 56,042 | (78,355) | |||||||||||||||||||||||||||
Net income (loss) attributable to Ares Management Corporation | 58,378 | (31,036) | |||||||||||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 5,425 | 5,425 | |||||||||||||||||||||||||||
Net income (loss) attributable to Ares Management Corporation Class A common stockholders | $ | 52,953 | $ | (36,461) | |||||||||||||||||||||||||
Net income (loss) per share of Class A common stock: | |||||||||||||||||||||||||||||
Basic | $ | 0.33 | $ | (0.33) | |||||||||||||||||||||||||
Diluted | $ | 0.32 | $ | (0.33) | |||||||||||||||||||||||||
Weighted-average shares of Class A common stock: | |||||||||||||||||||||||||||||
Basic | 149,271,822 | 118,366,539 | |||||||||||||||||||||||||||
Diluted | 163,664,384 | 118,366,539 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | |||||||||||||||
Management fees (includes ARCC Part I Fees of $24,036, $76,436 and $33,260, $90,884 for the three and nine months ended September 30, 2017 and 2016, respectively) | $ | 183,177 | $ | 163,609 | $ | 535,990 | $ | 480,563 | |||||||
Performance fees | 87,008 | 164,482 | 480,204 | 337,686 | |||||||||||
Administrative and other fees | 13,486 | 7,369 | 43,024 | 22,761 | |||||||||||
Total revenues | 283,671 | 335,460 | 1,059,218 | 841,010 | |||||||||||
Expenses | |||||||||||||||
Compensation and benefits | 129,347 | 111,916 | 384,905 | 335,249 | |||||||||||
Performance fee compensation | 58,637 | 123,173 | 361,044 | 253,739 | |||||||||||
General, administrative and other expenses | 47,104 | 38,197 | 145,193 | 116,845 | |||||||||||
Transaction support expense | — | — | 275,177 | — | |||||||||||
Expenses of the Consolidated Funds | 19,039 | 10,088 | 27,472 | 11,014 | |||||||||||
Total expenses | 254,127 | 283,374 | 1,193,791 | 716,847 | |||||||||||
Other income (expense) | |||||||||||||||
Investment income and net interest expense (includes interest expense of $5,343, $15,576 and $4,136, $13,819 for the three and nine months ended September 30, 2017 and 2016, respectively) | (1,831 | ) | (1,681 | ) | (6,218 | ) | (47 | ) | |||||||
Other income (expense), net | (2,492 | ) | 23,042 | 16,826 | 33,956 | ||||||||||
Net realized and unrealized gain on investments | 7,209 | 19,358 | 39,943 | 21,349 | |||||||||||
Investment income and net interest income of the Consolidated Funds (includes interest expense of $28,127, $86,324 and $26,413, $67,469 for the three and nine months ended September 30, 2017 and 2016, respectively) | 20,054 | 8,737 | 41,675 | 25,759 | |||||||||||
Net realized and unrealized gain (loss) on investments of the Consolidated Funds | 35,940 | 23,883 | 55,263 | (5,723 | ) | ||||||||||
Total other income | 58,880 | 73,339 | 147,489 | 75,294 | |||||||||||
Income before taxes | 88,424 | 125,425 | 12,916 | 199,457 | |||||||||||
Income tax expense (benefit) | 4,552 | 7,641 | (28,459 | ) | 7,868 | ||||||||||
Net income | 83,872 | 117,784 | 41,375 | 191,589 | |||||||||||
Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds | 18,195 | 7,861 | 25,403 | (3,064 | ) | ||||||||||
Less: Net income attributable to redeemable interests in Ares Operating Group entities | — | 107 | — | 456 | |||||||||||
Less: Net income (loss) attributable to non-controlling interests in Ares Operating Group entities | 37,839 | 66,511 | (20,610 | ) | 116,404 | ||||||||||
Net income attributable to Ares Management, L.P. | 27,838 | 43,305 | 36,582 | 77,793 | |||||||||||
Less: Preferred equity distributions paid | 5,425 | 6,751 | 16,275 | 6,751 | |||||||||||
Net income attributable to Ares Management, L.P. common unitholders | $ | 22,413 | $ | 36,554 | $ | 20,307 | $ | 71,042 | |||||||
Net income attributable to Ares Management, L.P. per common unit: | |||||||||||||||
Basic | $ | 0.26 | $ | 0.45 | $ | 0.22 | $ | 0.87 | |||||||
Diluted | $ | 0.26 | $ | 0.43 | $ | 0.22 | $ | 0.86 | |||||||
Weighted-average common units: | |||||||||||||||
Basic | 82,166,852 | 80,793,984 | 81,704,815 | 80,741,460 | |||||||||||
Diluted | 82,166,852 | 84,464,591 | 81,704,815 | 82,667,049 | |||||||||||
Distribution declared and paid per common unit | $ | 0.31 | $ | 0.28 | $ | 0.72 | $ | 0.63 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 83,872 | $ | 117,784 | $ | 41,375 | $ | 191,589 | |||||||
Other comprehensive income: | |||||||||||||||
Foreign currency translation adjustments | 6,043 | (2,241 | ) | 11,514 | (12,566 | ) | |||||||||
Total comprehensive income | 89,915 | 115,543 | 52,889 | 179,023 | |||||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests in Consolidated Funds | 18,017 | 7,861 | 25,055 | (3,064 | ) | ||||||||||
Less: Comprehensive income attributable to redeemable interests in Ares Operating Group entities | — | 105 | — | 409 | |||||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests in Ares Operating Group entities | 41,143 | 65,125 | (13,201 | ) | 108,651 | ||||||||||
Comprehensive income attributable to Ares Management, L.P. | $ | 30,755 | $ | 42,452 | $ | 41,035 | $ | 73,027 |
Three months ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Net income (loss) | $ | 164,310 | $ | (275,797) | ||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | (10,573) | (14,208) | ||||||||||||||||||||||||||||||
Total comprehensive income (loss) | 153,737 | (290,005) | ||||||||||||||||||||||||||||||
Less: Comprehensive loss attributable to redeemable interest in Ares Operating Group entities | (558) | 0 | ||||||||||||||||||||||||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests in Consolidated Funds | 40,786 | (171,093) | ||||||||||||||||||||||||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests in Ares Operating Group entities | 55,676 | (83,074) | ||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to Ares Management Corporation | $ | 57,833 | $ | (35,838) |
Series A Preferred Stock | 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 December 31, 2020 | $ | 298,761 | $ | 1,472 | $ | 1,124 | $ | 1,043,669 | $ | (151,824) | $ | 483 | $ | 738,369 | $ | 539,720 | $ | 2,471,774 | |||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | 26 | (2) | (41,686) | — | — | (44,477) | — | (86,139) | ||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | 0 | 11,011 | 11,011 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | (5,425) | — | — | — | (74,684) | — | (67,084) | (38,829) | (186,022) | ||||||||||||||||||||||||||||||||||||||||||||
Net income | 5,425 | — | — | — | 52,953 | — | 56,042 | 49,858 | 164,278 | ||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | (545) | (366) | (9,072) | (9,983) | ||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | — | 31,752 | — | — | 23,897 | — | 55,649 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 298,761 | 1,498 | 1,122 | 1,033,735 | (173,555) | (62) | 706,381 | 552,688 | 2,420,568 | ||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock | 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 December 31, 2019 | $ | 298,761 | $ | 1,152 | $ | 0 | $ | 525,244 | $ | (50,820) | $ | (6,047) | $ | 472,288 | $ | 618,020 | $ | 1,858,598 | ||||||||||||||||||||||||||||||||||||||
Consolidation and deconsolidation of funds, net | — | — | — | — | — | — | — | (3,882) | (3,882) | |||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | 40 | — | (196,670) | — | — | 122,551 | — | (74,079) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | 121 | 1,152 | 382,061 | — | — | — | — | 383,334 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | 42,012 | 133,265 | 175,277 | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | (5,425) | — | — | — | (51,090) | — | (55,748) | (13,492) | (125,755) | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | 5,425 | — | — | — | (36,461) | — | (78,355) | (166,406) | (275,797) | |||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | (4,802) | (4,719) | (4,687) | (14,208) | |||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | — | 16,420 | — | — | 16,137 | — | 32,557 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | 11 | — | 19,540 | — | — | — | — | 19,551 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 298,761 | 1,324 | 1,152 | 746,595 | (138,371) | (10,849) | 514,166 | 562,818 | 1,975,596 | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidation and deconsolidation of funds, net | — | — | — | — | — | — | — | 1,475 | 1,475 | |||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | 4 | (4) | (9,702) | — | — | 9,796 | — | 94 | |||||||||||||||||||||||||||||||||||||||||||||||
Expenses incurred upon issuance of common stock | — | — | — | (181) | — | — | — | — | (181) | |||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | 229 | (9,570) | (9,341) | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | (5,425) | — | — | — | (57,620) | — | (59,949) | (136,837) | (259,831) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | 5,425 | — | — | — | 50,946 | — | 75,119 | 85,186 | 216,676 | |||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | (388) | (54) | 3,129 | 2,687 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | — | 15,500 | — | — | 13,183 | — | 28,683 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | 25 | — | 47,865 | — | — | — | — | 47,890 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 298,761 | 1,353 | 1,148 | 800,077 | (145,045) | (11,237) | 552,490 | 506,201 | 2,003,748 | |||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | 2 | (2) | (122,555) | — | — | 118,804 | — | (3,751) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | 77 | 0 | 305,261 | — | — | — | — | 305,338 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | 481 | — | — | 0 | 18 | 499 | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | (5,425) | — | — | — | (61,159) | — | (49,391) | (19,418) | (135,393) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | 5,425 | — | — | — | 42,120 | — | 52,162 | 42,627 | 142,334 | |||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | 4,450 | 4,128 | 7,673 | 16,251 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | — | 16,921 | — | — | 13,416 | — | 30,337 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | 6 | — | 11,512 | — | — | — | — | 11,518 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 298,761 | 1,438 | 1,146 | 1,011,697 | (164,084) | (6,787) | 691,609 | 537,101 | 2,370,881 | |||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | — | 27,000 | (22,000) | 508,000 | — | — | (21,922) | — | (21,409) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | 0 | 0 | 1 | — | — | — | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | 2,558 | 8,717 | 11,275 | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends/Distributions | (5,425) | — | — | — | (61,577) | — | (50,246) | (81,760) | (199,008) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | 5,425 | — | — | — | 73,837 | — | 96,308 | 66,678 | 242,248 | |||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | 7,270 | 6,206 | 8,984 | 22,460 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | — | 17,553 | — | — | 13,856 | — | 31,409 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | 7 | — | 13,910 | — | — | — | — | 13,917 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 298,761 | $ | 1,472 | $ | 1,124 | $ | 1,043,669 | $ | (151,824) | $ | 483 | $ | 738,369 | $ | 539,720 | $ | 2,471,774 |
Preferred Equity | Partners' 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, 2016 | $ | 298,761 | $ | 301,790 | $ | (8,939 | ) | $ | 447,615 | $ | 338,035 | $ | 1,377,262 | |||||||||||
Changes in ownership interests | — | (7,482 | ) | — | (8,994 | ) | — | (16,476 | ) | |||||||||||||||
Contributions | — | — | — | 1,884 | 145,717 | 147,601 | ||||||||||||||||||
Distributions | (16,275 | ) | (58,881 | ) | — | (110,127 | ) | (49,084 | ) | (234,367 | ) | |||||||||||||
Net income (loss) | 16,275 | 20,307 | — | (20,610 | ) | 25,403 | 41,375 | |||||||||||||||||
Currency translation adjustment | — | — | 4,453 | 7,409 | (348 | ) | 11,514 | |||||||||||||||||
Equity compensation | — | 19,676 | — | 31,336 | — | 51,012 | ||||||||||||||||||
Balance at September 30, 2017 | $ | 298,761 | $ | 275,410 | $ | (4,486 | ) | $ | 348,513 | $ | 459,723 | $ | 1,377,921 |
For the Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 41,375 | $ | 191,589 | |||
Adjustments to reconcile net income to net cash (used in) provided operating activities | (52,314 | ) | 24,989 | ||||
Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds | (1,157,088 | ) | (506,849 | ) | |||
Cash flows due to changes in operating assets and liabilities | (78,593 | ) | (30,485 | ) | |||
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds | 54,370 | 61,397 | |||||
Net cash used in operating activities | (1,192,250 | ) | (259,359 | ) | |||
Cash flows from investing activities: | |||||||
Purchase of furniture, equipment and leasehold improvements, net | (27,926 | ) | (8,167 | ) | |||
Net cash used in investing activities | (27,926 | ) | (8,167 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from credit facility | 245,000 | 147,000 | |||||
Proceeds from term notes | 70,009 | — | |||||
Repayments of credit facility | (135,000 | ) | (257,000 | ) | |||
Proceeds from the issuance of preferred equity, net of issuance costs | — | 298,637 | |||||
Distributions | (169,008 | ) | (150,424 | ) | |||
Preferred equity distributions | (16,275 | ) | (6,751 | ) | |||
Net settlement of vested common units | (13,910 | ) | — | ||||
Stock option exercise | 1,036 | — | |||||
Excess tax benefit related to stock option exercise | 81 | — | |||||
Other financing activities | 1,541 | (701 | ) | ||||
Allocable to non-controlling interest in Consolidated Funds: | |||||||
Contributions from non-controlling interests in Consolidated Funds | 145,717 | 93,128 | |||||
Distributions to non-controlling interests in Consolidated Funds | (49,084 | ) | (61,270 | ) | |||
Borrowings under loan obligations by Consolidated Funds | 2,438,491 | 530,731 | |||||
Repayments under loan obligations by Consolidated Funds | (1,466,951 | ) | (103,648 | ) | |||
Net cash provided by financing activities | 1,051,647 | 489,702 | |||||
Effect of exchange rate changes | 12,105 | (6,876 | ) | ||||
Net change in cash and cash equivalents | (156,424 | ) | 215,300 | ||||
Cash and cash equivalents, beginning of period | 342,861 | 121,483 | |||||
Cash and cash equivalents, end of period | $ | 186,437 | $ | 336,783 |
Three months ended March 31, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | 164,310 | $ | (275,797) | |||||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities | 44,284 | 125,070 | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities allocable to redeemable and non-controlling interests in Consolidated Funds | (1,208,180) | (453,015) | |||||||||||||||
Cash flows due to changes in operating assets and liabilities | (7,044) | 51,995 | |||||||||||||||
Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds | 265,512 | 188,510 | |||||||||||||||
Net cash used in operating activities | (741,118) | (363,237) | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | (3,284) | (3,062) | |||||||||||||||
Acquisitions, net of cash acquired | 0 | (35,844) | |||||||||||||||
Net cash used in investing activities | (3,284) | (38,906) | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Net proceeds from issuance of Class A common stock | 0 | 383,334 | |||||||||||||||
Proceeds from Credit Facility | 168,000 | 790,000 | |||||||||||||||
Repayments of Credit Facility | 0 | (60,000) | |||||||||||||||
Dividends and distributions | (141,768) | (106,838) | |||||||||||||||
Series A Preferred Stock dividends | (5,425) | (5,425) | |||||||||||||||
Stock option exercises | 0 | 19,551 | |||||||||||||||
Taxes paid related to net share settlement of equity awards | (84,590) | (73,500) | |||||||||||||||
Other financing activities | 341 | (2,125) | |||||||||||||||
Allocable to redeemable and non-controlling interests in Consolidated Funds: | |||||||||||||||||
Contributions from redeemable and non-controlling interests in Consolidated Funds | 941,935 | 133,265 | |||||||||||||||
Distributions to non-controlling interests in Consolidated Funds | (38,829) | (13,492) | |||||||||||||||
Borrowings under loan obligations by Consolidated Funds | 7,000 | 454,391 | |||||||||||||||
Repayments under loan obligations by Consolidated Funds | (29,453) | (73,609) | |||||||||||||||
Net cash provided by financing activities | 817,211 | 1,445,552 | |||||||||||||||
Effect of exchange rate changes | (2,749) | (14,120) | |||||||||||||||
Net change in cash and cash equivalents | 70,060 | 1,029,289 | |||||||||||||||
Cash and cash equivalents, beginning of period | 539,812 | 138,384 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 609,872 | $ | 1,167,673 | |||||||||||||
Weighted Average Amortization Period as of March 31, 2021 | As of March 31, | As of December 31, | |||||||||||||||
2021 | 2020 | ||||||||||||||||
Management contracts | 5.2 years | $ | 210,857 | $ | 210,857 | ||||||||||||
Client relationships | 8.8 years | 25,141 | 25,141 | ||||||||||||||
Trade name | 9.1 years | 11,079 | 11,079 | ||||||||||||||
Intangible assets | 247,077 | 247,077 | |||||||||||||||
Foreign currency translation | 1,873 | 3,093 | |||||||||||||||
Total intangible assets | 248,950 | 250,170 | |||||||||||||||
Less: accumulated amortization | (38,539) | (28,082) | |||||||||||||||
Intangible assets, net | $ | 210,411 | $ | 222,088 |
Weighted Average Amortization Period as of September 30, 2017 | As of September 30, | As of December 31, | |||||||
2017 | 2016 | ||||||||
Management contracts | 1.9 years | $ | 67,306 | $ | 111,939 | ||||
Client relationships | 10.8 years | 38,600 | 38,600 | ||||||
Trade name | 4.8 years | 3,200 | 3,200 | ||||||
Intangible assets | 109,106 | 153,739 | |||||||
Foreign currency translation | — | (3,205 | ) | ||||||
Total intangible assets | 109,106 | 150,534 | |||||||
Less: accumulated amortization | (64,991 | ) | (92,219 | ) | |||||
Intangible assets, net | $ | 44,115 | $ | 58,315 |
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total | |||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | 32,196 | $ | 58,600 | $ | 53,120 | $ | 227,131 | $ | 371,047 | |||||||||||||||||||
Foreign currency translation | 0 | 0 | 16 | (1,043) | (1,027) | ||||||||||||||||||||||||
Balance as of March 31, 2021 | $ | 32,196 | $ | 58,600 | $ | 53,136 | $ | 226,088 | $ | 370,020 |
Credit | Private Equity | Real Estate | Total | ||||||||||||
Balance as of December 31, 2016 | $ | 32,196 | $ | 58,600 | $ | 52,928 | $ | 143,724 | |||||||
Foreign currency translation | — | — | 156 | 156 | |||||||||||
Balance as of September 30, 2017 | $ | 32,196 | $ | 58,600 | $ | 53,084 | $ | 143,880 |
Percentage of total investments | |||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Equity method investments: | |||||||||||||||||||||||
Equity method private investment partnership interests - principal (1) | $ | 388,820 | $ | 366,471 | 20.1 | % | 21.8 | % | |||||||||||||||
Equity method - carried interest (1) | 1,369,684 | 1,145,853 | 70.9 | 68.1 | |||||||||||||||||||
Equity method private investment partnership interests and other (held at fair value)(1) | 93,017 | 92,196 | 4.8 | 5.5 | |||||||||||||||||||
Equity method private investment partnership interests and other(1) | 25,917 | 23,883 | 1.3 | 1.4 | |||||||||||||||||||
Total equity method investments | 1,877,438 | 1,628,403 | 97.1 | 96.8 | |||||||||||||||||||
Collateralized loan obligations (2) | 31,947 | 31,766 | 1.7 | 1.9 | |||||||||||||||||||
Other fixed income | 21,583 | 21,583 | 1.1 | 1.3 | |||||||||||||||||||
Collateralized loan obligations and other fixed income, at fair value | 53,530 | 53,349 | 2.8 | 3.2 | |||||||||||||||||||
Common stock, at fair value | 1,010 | 1,007 | 0.1 | 0.1 | |||||||||||||||||||
Total investments | $ | 1,931,978 | $ | 1,682,759 | |||||||||||||||||||
Fair value at | Fair value as a percentage of total investments at | ||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||
Private Investment Partnership Interests: | |||||||||||||
AREA Sponsor Holdings, LLC | $ | 26,002 | $ | 28,898 | 4.6 | % | 6.8 | % | |||||
ACE II Master Fund, L.P. (1)(2) | 19,141 | 22,042 | 3.4 | % | 5.2 | % | |||||||
Ares Corporate Opportunities Fund III, L.P. | 114,674 | 97,549 | 20.3 | % | 22.9 | % | |||||||
Ares Corporate Opportunities Fund IV, L.P. (2) | 34,990 | 37,308 | 6.2 | % | 8.7 | % | |||||||
Resolution Life L.P. | 36,439 | 33,410 | 6.5 | % | 7.8 | % | |||||||
Other private investment partnership interests (1)(3) | 168,732 | 118,075 | 30.0 | % | 27.7 | % | |||||||
Total private investment partnership interests (cost: $293,804 and $256,638 at September 30, 2017 and December 31, 2016, respectively) | 399,978 | 337,282 | 71.0 | % | 79.1 | % | |||||||
Collateralized loan obligations (cost: $163,011 and $89,743 at September 30, 2017 and December 31, 2016, respectively) (3) | 162,261 | 89,111 | 28.8 | % | 20.9 | % | |||||||
Common stock (cost: $1,132 and $124 at September 30, 2017 and December 31, 2016, respectively) (3) | 1,304 | 100 | 0.2 | % | 0.0 | % | |||||||
Total fair value investments (cost: $457,947 and $346,505 at September 30, 2017 and December 31, 2016, respectively) | $ | 563,543 | $ | 426,493 |
As of September 30, | As of December 31, | ||||||
2017 | 2016 | ||||||
Equity method investment | $ | 3,081 | $ | 3,616 | |||
Equity method investments at fair value | 18,071 | 21,843 | |||||
Total equity method investments | $ | 21,152 | $ | 25,459 |
As of September 30, | As of December 31, | ||||||
2017 | 2016 | ||||||
Amortized cost | $ | — | $ | 16,519 | |||
Unrealized loss, net | — | (116 | ) | ||||
Fair value | $ | — | $ | 16,403 |
Fair Value at | Percentage of total investments as of | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||
Bonds | $ | 396,455 | $ | 397,494 | 3.3 | % | 3.6% | ||||||||||||||||
Loans | 10,037,808 | 10,012,948 | 84.0 | 92.1 | |||||||||||||||||||
U.S. Treasury securities | 1,000,040 | 0 | 8.4 | 0 | |||||||||||||||||||
Investments in CLO warehouse | 25,350 | 0 | 0.2 | 0 | |||||||||||||||||||
Total fixed income investments | 11,459,653 | 10,410,442 | 95.9 | 95.7 | |||||||||||||||||||
Equity securities | 236,953 | 227,031 | 2.0 | 2.1 | |||||||||||||||||||
Partnership interests | 251,607 | 239,624 | 2.1 | 2.2 | |||||||||||||||||||
Total investments, at fair value | $ | 11,948,213 | $ | 10,877,097 |
Fair value at | Fair value as a percentage of total investments at | ||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||
United States: | |||||||||||||
Fixed income securities: | |||||||||||||
Consumer discretionary | $ | 1,124,210 | $ | 665,773 | 22.6 | % | 20.0 | % | |||||
Consumer staples | 55,357 | 64,840 | 1.1 | % | 1.9 | % | |||||||
Energy | 138,687 | 45,409 | 2.8 | % | 1.4 | % | |||||||
Financials | 234,828 | 139,285 | 4.8 | % | 4.2 | % | |||||||
Healthcare, education and childcare | 396,747 | 246,403 | 8.0 | % | 7.4 | % | |||||||
Industrials | 298,186 | 149,632 | 6.1 | % | 4.5 | % | |||||||
Information technology | 138,390 | 194,394 | 2.8 | % | 5.8 | % | |||||||
Materials | 163,728 | 139,994 | 3.3 | % | 4.2 | % | |||||||
Telecommunication services | 337,695 | 261,771 | 6.9 | % | 7.9 | % | |||||||
Utilities | 54,548 | 47,800 | 1.1 | % | 1.4 | % | |||||||
Total fixed income securities (cost: $2,949,788 and $1,945,977 at September 30, 2017 and December 31, 2016, respectively) | 2,942,376 | 1,955,301 | 59.5 | % | 58.7 | % | |||||||
Equity securities: | |||||||||||||
Energy | 158 | 421 | 0.0 | % | 0.0 | % | |||||||
Partnership and LLC interests | 224,010 | 171,696 | 4.6 | % | 5.2 | % | |||||||
Total equity securities (cost: $192,265 and $149,872 at September 30, 2017 and December 31, 2016, respectively) | 224,168 | 172,117 | 4.6 | % | 5.2 | % |
Fair value at | Fair value as a percentage of total investments at | ||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||
Europe: | |||||||||||||
Fixed income securities: | |||||||||||||
Consumer discretionary | $ | 523,953 | $ | 274,678 | 10.6 | % | 8.2 | % | |||||
Consumer staples | 72,446 | 39,197 | 1.5 | % | 1.2 | % | |||||||
Financials | 43,702 | 28,769 | 0.9 | % | 0.9 | % | |||||||
Healthcare, education and childcare | 199,823 | 111,589 | 4.1 | % | 3.4 | % | |||||||
Industrials | 106,808 | 118,466 | 2.2 | % | 3.6 | % | |||||||
Information technology | 46,512 | 49,507 | 0.9 | % | 1.5 | % | |||||||
Materials | 235,505 | 124,629 | 4.8 | % | 3.7 | % | |||||||
Telecommunication services | 143,972 | 118,632 | 2.9 | % | 3.6 | % | |||||||
Utilities | 9,427 | 4,007 | 0.2 | % | 0.1 | % | |||||||
Total fixed income securities (cost: $1,383,866 and $892,108 at September 30, 2017 and December 31, 2016, respectively) | 1,382,148 | 869,474 | 28.1 | % | 26.2 | % | |||||||
Equity securities: | |||||||||||||
Consumer staples | — | 1,517 | — | % | 0.0 | % | |||||||
Healthcare, education and childcare | 57,562 | 41,329 | 1.2 | % | 1.2 | % | |||||||
Telecommunication services | — | 24 | — | % | 0.0 | % | |||||||
Total equity securities (cost: $67,198 and $67,290 at September 30, 2017 and December 31, 2016, respectively) | 57,562 | 42,870 | 1.2 | % | 1.2 | % | |||||||
Asia and other: | |||||||||||||
Fixed income securities: | |||||||||||||
Consumer discretionary | 27,950 | 24,244 | 0.6 | % | 0.7 | % | |||||||
Financials | 22,402 | 1,238 | 0.5 | % | 0.0 | % | |||||||
Healthcare, education and childcare | — | 10,010 | — | % | 0.3 | % | |||||||
Telecommunication services | 22,830 | 8,696 | 0.5 | % | 0.3 | % | |||||||
Total fixed income securities (cost: $73,146 and $46,545 at September 30, 2017 and December 31, 2016, respectively) | 73,182 | 44,188 | 1.6 | % | 1.3 | % | |||||||
Equity securities: | |||||||||||||
Consumer discretionary | 48,161 | 44,642 | 1.0 | % | 1.3 | % | |||||||
Consumer staples | 47,208 | 50,101 | 1.0 | % | 1.5 | % | |||||||
Healthcare, education and childcare | 44,637 | 32,598 | 0.9 | % | 1.0 | % | |||||||
Industrials | 16,578 | 16,578 | 0.3 | % | 0.5 | % | |||||||
Total equity securities (cost: $122,418 and $122,418 at September 30, 2017 and December 31, 2016, respectively) | 156,584 | 143,919 | 3.2 | % | 4.3 | % |
Fair value at | Fair value as a percentage of total investments at | ||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||
Canada: | |||||||||||||
Fixed income securities: | |||||||||||||
Consumer discretionary | $ | 4,093 | $ | — | 0.1 | % | — | % | |||||
Consumer staples | 10,387 | 5,256 | 0.2 | % | 0.2 | % | |||||||
Energy | 28,459 | 12,830 | 0.6 | % | 0.4 | % | |||||||
Healthcare, education and childcare | — | 15,509 | — | % | 0.5 | % | |||||||
Industrials | 12,464 | 1,401 | 0.3 | % | 0.0 | % | |||||||
Telecommunication services | 9,725 | 13,852 | 0.2 | % | 0.4 | % | |||||||
Total fixed income securities (cost: $64,567 and $48,274 at September 30, 2017 and December 31, 2016, respectively) | 65,128 | 48,848 | 1.4 | % | 1.5 | % | |||||||
Equity securities: | |||||||||||||
Consumer discretionary | 7,862 | 164 | 0.2 | % | 0.0 | % | |||||||
Total equity securities (cost: $17,202 and $408 at September 30, 2017 and December 31, 2016, respectively) | 7,862 | 164 | 0.2 | % | 0.0 | % | |||||||
Australia: | |||||||||||||
Fixed income securities: | |||||||||||||
Consumer discretionary | 3,142 | 5,627 | 0.1 | % | 0.2 | % | |||||||
Energy | 2,877 | 6,046 | 0.1 | % | 0.2 | % | |||||||
Industrials | — | 2,926 | — | % | 0.1 | % | |||||||
Utilities | — | 21,154 | — | % | 0.6 | % | |||||||
Total fixed income securities (cost: $6,910 and $37,975 at September 30, 2017 and December 31, 2016, respectively) | 6,019 | 35,753 | 0.2 | % | 1.1 | % | |||||||
Equity securities: | |||||||||||||
Utilities | — | 17,569 | — | % | 0.5 | % | |||||||
Total equity securities (cost: $0 and $18,442 at September 30, 2017 and December 31, 2016, respectively) | — | 17,569 | — | % | 0.5 | % | |||||||
Total fixed income securities | 4,468,853 | 2,953,564 | 90.8 | % | 88.8 | % | |||||||
Total equity securities | 446,176 | 376,639 | 9.2 | % | 11.2 | % | |||||||
Total investments, at fair value | $ | 4,915,029 | $ | 3,330,203 |
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 | $ | 53,530 | $ | — | $ | 53,530 | ||||||||||||||||||||||
Common stock and other equity securities | 0 | 1,010 | 89,233 | — | 90,243 | |||||||||||||||||||||||||||
Partnership interests | 0 | 0 | 2,575 | 1,209 | 3,784 | |||||||||||||||||||||||||||
Total investments, at fair value | 0 | 1,010 | 145,338 | 1,209 | 147,557 | |||||||||||||||||||||||||||
Derivatives-foreign exchange contracts | 0 | 2,897 | 0 | — | 2,897 | |||||||||||||||||||||||||||
Total assets, at fair value | $ | 0 | $ | 3,907 | $ | 145,338 | $ | 1,209 | $ | 150,454 | ||||||||||||||||||||||
Liabilities, at fair value | ||||||||||||||||||||||||||||||||
Derivatives-foreign exchange contracts | $ | 0 | $ | (746) | $ | 0 | $ | — | $ | (746) | ||||||||||||||||||||||
Total liabilities, at fair value | $ | 0 | $ | (746) | $ | 0 | $ | — | $ | (746) |
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 | $ | 395,834 | $ | 621 | $ | — | $ | 396,455 | ||||||||||||||||||||||
Loans | 0 | 9,478,049 | 559,759 | — | 10,037,808 | |||||||||||||||||||||||||||
U.S. Treasury securities | 1,000,040 | 0 | 0 | — | 1,000,040 | |||||||||||||||||||||||||||
Investments in CLO warehouse | 0 | 25,350 | 0 | — | 25,350 | |||||||||||||||||||||||||||
Total fixed income investments | 1,000,040 | 9,899,233 | 560,380 | — | 11,459,653 | |||||||||||||||||||||||||||
Equity securities | 5,008 | 1,311 | 230,634 | — | 236,953 | |||||||||||||||||||||||||||
Partnership interests | 0 | 0 | 243,452 | 8,155 | 251,607 | |||||||||||||||||||||||||||
Total investments, at fair value | 1,005,048 | 9,900,544 | 1,034,466 | 8,155 | 11,948,213 | |||||||||||||||||||||||||||
Total assets, at fair value | $ | 1,005,048 | $ | 9,900,544 | $ | 1,034,466 | $ | 8,155 | $ | 11,948,213 | ||||||||||||||||||||||
Liabilities, at fair value | ||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||
Warrants | $ | (17,500) | $ | 0 | $ | 0 | $ | — | $ | (17,500) | ||||||||||||||||||||||
Asset swaps-other | 0 | 0 | (2,101) | $ | — | (2,101) | ||||||||||||||||||||||||||
Loan obligations of CLOs | 0 | (9,839,639) | 0 | — | (9,839,639) | |||||||||||||||||||||||||||
Total liabilities, at fair value | $ | (17,500) | $ | (9,839,639) | $ | (2,101) | $ | — | $ | (9,859,240) |
Financial Instruments of the Company | Level I | Level II | Level III | Investments Measured at NAV | Total | |||||||||||||||
Assets, at fair value | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Fixed income-collateralized loan obligations | $ | — | $ | — | $ | 162,261 | $ | — | $ | 162,261 | ||||||||||
Equity securities | 300 | 1,004 | — | — | 1,304 | |||||||||||||||
Partnership interests | — | — | 36,439 | 381,610 | 418,049 | |||||||||||||||
Total investments, at fair value | 300 | 1,004 | 198,700 | 381,610 | 581,614 | |||||||||||||||
Derivatives—foreign exchange contracts | — | 1,310 | — | — | 1,310 | |||||||||||||||
Total assets, at fair value | $ | 300 | $ | 2,314 | $ | 198,700 | $ | 381,610 | $ | 582,924 | ||||||||||
Liabilities, at fair value | ||||||||||||||||||||
Derivatives—foreign exchange contracts | $ | — | $ | (4,194 | ) | $ | — | $ | — | $ | (4,194 | ) | ||||||||
Total liabilities, at fair value | $ | — | $ | (4,194 | ) | $ | — | $ | — | $ | (4,194 | ) |
Financial Instruments of the Consolidated Funds | Level I | Level II | Level III | Total | ||||||||||||
Assets, at fair value | ||||||||||||||||
Investments: | ||||||||||||||||
Fixed income investments: | ||||||||||||||||
Bonds | $ | — | $ | 91,683 | $ | 7,373 | $ | 99,056 | ||||||||
Loans | — | 4,037,594 | 312,203 | 4,349,797 | ||||||||||||
Collateralized loan obligations | — | 20,000 | — | 20,000 | ||||||||||||
Total fixed income investments | — | 4,149,277 | 319,576 | 4,468,853 | ||||||||||||
Equity securities | 65,150 | 158 | 156,858 | 222,166 | ||||||||||||
Partnership interests | — | — | 224,010 | 224,010 | ||||||||||||
Total investments, at fair value | 65,150 | 4,149,435 | 700,444 | 4,915,029 | ||||||||||||
Derivatives—other | — | — | 1,328 | 1,328 | ||||||||||||
Total assets, at fair value | $ | 65,150 | $ | 4,149,435 | $ | 701,772 | $ | 4,916,357 | ||||||||
Liabilities, at fair value | ||||||||||||||||
Derivatives—other | $ | — | $ | — | $ | (201 | ) | $ | (201 | ) | ||||||
Loan obligations of CLOs | — | (4,476,643 | ) | — | (4,476,643 | ) | ||||||||||
Total liabilities, at fair value | $ | — | $ | (4,476,643 | ) | $ | (201 | ) | $ | (4,476,844 | ) |
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 | |||||||||||||||||||||||||||
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: | ||||||||||||||||||||
Fixed income-collateralized loan obligations | $ | — | $ | — | $ | 89,111 | $ | — | $ | 89,111 | ||||||||||
Equity securities | 100 | — | — | — | 100 | |||||||||||||||
Partnership interests | — | — | 33,410 | 325,715 | 359,125 | |||||||||||||||
Total investments, at fair value | 100 | — | 122,521 | 325,715 | 448,336 | |||||||||||||||
Derivatives—foreign exchange contracts | — | 3,171 | — | — | 3,171 | |||||||||||||||
Total assets, at fair value | $ | 100 | $ | 3,171 | $ | 122,521 | $ | 325,715 | $ | 451,507 | ||||||||||
Liabilities, at fair value | ||||||||||||||||||||
Contingent considerations | $ | — | $ | — | $ | (22,156 | ) | $ | — | $ | (22,156 | ) | ||||||||
Total liabilities, at fair value | $ | — | $ | — | $ | (22,156 | ) | $ | — | $ | (22,156 | ) |
Financial Instruments of the Consolidated Funds | Level I | Level II | Level III | Total | ||||||||||||
Assets, at fair value | ||||||||||||||||
Investments: | ||||||||||||||||
Fixed income investments: | ||||||||||||||||
Bonds | $ | — | $ | 104,886 | $ | 37,063 | $ | 141,949 | ||||||||
Loans | — | 2,606,423 | 199,217 | 2,805,640 | ||||||||||||
Collateralized loan obligations | — | — | 5,973 | 5,973 | ||||||||||||
Total fixed income investments | — | 2,711,309 | 242,253 | 2,953,562 | ||||||||||||
Equity securities | 56,662 | 17,569 | 130,690 | 204,921 | ||||||||||||
Partnership interests | — | — | 171,696 | 171,696 | ||||||||||||
Other | — | 24 | — | 24 | ||||||||||||
Total investments, at fair value | 56,662 | 2,728,902 | 544,639 | 3,330,203 | ||||||||||||
Derivatives: | ||||||||||||||||
Foreign exchange contracts | — | 529 | — | 529 | ||||||||||||
Other | — | — | 291 | 291 | ||||||||||||
Total derivative assets, at fair value | — | 529 | 291 | 820 | ||||||||||||
Total assets, at fair value | $ | 56,662 | $ | 2,729,431 | $ | 544,930 | $ | 3,331,023 | ||||||||
Liabilities, at fair value | ||||||||||||||||
Derivatives—other | $ | — | $ | — | $ | (2,999 | ) | $ | (2,999 | ) | ||||||
Loan obligations of CLOs | — | (3,031,112 | ) | — | (3,031,112 | ) | ||||||||||
Total liabilities, at fair value | $ | — | $ | (3,031,112 | ) | $ | (2,999 | ) | $ | (3,034,111 | ) |
Level III Assets | |||||||||||||||||||||||||||||
Level III Assets of the Company | Equity Securities | Fixed Income | Partnership Interests | Total | |||||||||||||||||||||||||
Balance, beginning of period | $ | 88,412 | $ | 53,349 | $ | 2,575 | $ | 144,336 | |||||||||||||||||||||
Sales/settlements(2) | 0 | (1,539) | 0 | (1,539) | |||||||||||||||||||||||||
Realized and unrealized appreciation, net | 821 | 1,720 | 0 | 2,541 | |||||||||||||||||||||||||
Balance, end of period | $ | 89,233 | $ | 53,530 | $ | 2,575 | $ | 145,338 | |||||||||||||||||||||
Change in net unrealized appreciation included in earnings related to financial assets still held at the reporting date | $ | 821 | $ | 1,720 | $ | 0 | $ | 2,541 |
Level III Net Assets of Consolidated Funds | Equity Securities | Fixed Income | Partnership Interests | Derivatives, Net | Total | |||||||||||||||||||||||||||
Balance, beginning of period | $ | 221,043 | $ | 542,305 | $ | 231,857 | $ | 1,060 | $ | 996,265 | ||||||||||||||||||||||
Transfer in | 2,289 | 221,555 | 0 | 0 | 223,844 | |||||||||||||||||||||||||||
Transfer out | (33) | (209,002) | 0 | 0 | (209,035) | |||||||||||||||||||||||||||
Purchases(1) | 8,308 | 137,655 | 1,000 | 0 | 146,963 | |||||||||||||||||||||||||||
Sales/settlements(2) | (424) | (127,350) | 0 | 185 | (127,589) | |||||||||||||||||||||||||||
Amortized discounts/premiums | 0 | 770 | 0 | 0 | 770 | |||||||||||||||||||||||||||
Realized and unrealized appreciation (depreciation), net | (549) | (5,553) | 10,595 | (3,346) | 1,147 | |||||||||||||||||||||||||||
Balance, end of period | $ | 230,634 | $ | 560,380 | $ | 243,452 | $ | (2,101) | $ | 1,032,365 | ||||||||||||||||||||||
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | (582) | $ | (863) | $ | 10,594 | $ | (2,705) | $ | 6,444 |
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 | $ | 164,807 | $ | 33,410 | $ | 198,217 | $ | 1,940 | ||||||||
Purchases(1) | 29,911 | — | 29,911 | — | ||||||||||||
Sales/settlements(2) | (33,062 | ) | — | (33,062 | ) | (1,000 | ) | |||||||||
Expired contingent considerations | — | — | — | (1,000 | ) | |||||||||||
Realized and unrealized appreciation, net | 605 | 3,029 | 3,634 | 60 | ||||||||||||
Balance, end of period | $ | 162,261 | $ | 36,439 | $ | 198,700 | $ | — | ||||||||
Increase in unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date | $ | 442 | $ | 3,029 | $ | 3,471 | $ | — |
Level III Assets of Consolidated Funds | Equity Securities | Fixed Income | Partnership Interests | Derivatives, Net | Total | |||||||||||||||
Balance, beginning of period | $ | 146,274 | $ | 187,579 | $ | 217,740 | $ | 2,809 | $ | 554,402 | ||||||||||
Transfer in | — | 86,420 | — | — | 86,420 | |||||||||||||||
Transfer out | (271 | ) | (60,550 | ) | — | (4 | ) | (60,825 | ) | |||||||||||
Purchases(1) | — | 139,903 | 15,000 | — | 154,903 | |||||||||||||||
Sales(2) | (3,701 | ) | (49,783 | ) | (15,000 | ) | — | (68,484 | ) | |||||||||||
Additions(3) | — | 14,479 | — | 1,393 | 15,872 | |||||||||||||||
Settlements, net | — | — | — | (3,127 | ) | (3,127 | ) | |||||||||||||
Amortized discounts/premiums | — | 63 | — | 101 | 164 | |||||||||||||||
Realized and unrealized appreciation, net | 14,556 | 1,465 | 6,270 | (45 | ) | 22,246 | ||||||||||||||
Balance, end of period | $ | 156,858 | $ | 319,576 | $ | 224,010 | $ | 1,127 | $ | 701,571 | ||||||||||
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | 12,830 | $ | 920 | $ | 6,270 | $ | (2,021 | ) | $ | 17,999 |
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 | 0 | 3,686 | 0 | 3,686 | ||||||||||||||||||||||
Purchases(1) | 0 | 643 | 0 | 643 | ||||||||||||||||||||||
Sales/settlements(2) | 0 | (402) | (32,430) | (32,832) | ||||||||||||||||||||||
Realized and unrealized depreciation, net | 0 | (7,766) | (187) | (7,953) | ||||||||||||||||||||||
Balance, end of period | $ | 14,704 | $ | 65,344 | $ | 2,575 | $ | 82,623 | ||||||||||||||||||
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | 0 | $ | (6,731) | $ | 5,511 | $ | (1,220) |
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 | $ | 54,155 | $ | 44,746 | $ | 98,901 | $ | 41,035 | ||||||||
Purchases(1) | 4 | 833 | 837 | — | ||||||||||||
Sales/settlements(2) | (943 | ) | — | (943 | ) | (1,000 | ) | |||||||||
Realized and unrealized appreciation (depreciation), net | 2,721 | (12,169 | ) | (9,448 | ) | (17,690 | ) | |||||||||
Balance, end of period | $ | 55,937 | $ | 33,410 | $ | 89,347 | $ | 22,345 | ||||||||
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date | $ | 2,479 | $ | (6,237 | ) | $ | (3,758 | ) | $ | (17,690 | ) |
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) | 392,672 | 0 | 0 | 392,037 | |||||||||||||||||||||||||||
Transfer in | 0 | 607,588 | 0 | 0 | 607,588 | |||||||||||||||||||||||||||
Transfer out | 0 | (61,774) | 0 | 0 | (61,774) | |||||||||||||||||||||||||||
Purchases(1) | 249 | 355,592 | 8,000 | 0 | 363,841 | |||||||||||||||||||||||||||
Sales/settlements(2) | (351) | (178,159) | 0 | (1,278) | (179,788) | |||||||||||||||||||||||||||
Amortized discounts/premiums | 0 | 499 | 0 | 48 | 547 | |||||||||||||||||||||||||||
Realized and unrealized appreciation (depreciation), net | (42,499) | (175,998) | 3,013 | 5,356 | (210,128) | |||||||||||||||||||||||||||
Balance, end of period | $ | 42,752 | $ | 1,279,556 | $ | 307,025 | $ | 20 | $ | 1,629,353 | ||||||||||||||||||||||
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | (42,500) | $ | (170,496) | $ | 3,012 | $ | 2,874 | $ | (207,110) |
Level III Assets of Consolidated Funds | Equity Securities | Fixed Income | Partnership Interests | Derivatives, Net | Total | |||||||||||||||
Balance, beginning of period | $ | 143,334 | $ | 237,372 | $ | 115,440 | $ | (2,076 | ) | $ | 494,070 | |||||||||
Transfer in | 18,135 | 54,202 | — | — | 72,337 | |||||||||||||||
Transfer out | — | (70,910 | ) | — | — | (70,910 | ) | |||||||||||||
Purchases(1) | 6,171 | 94,527 | 21,433 | — | 122,131 | |||||||||||||||
Sales(2) | (290 | ) | (45,002 | ) | (2,933 | ) | — | (48,225 | ) | |||||||||||
Settlements, net | — | — | — | (543 | ) | (543 | ) | |||||||||||||
Amortized discounts/premiums | — | 374 | — | 214 | 588 | |||||||||||||||
Realized and unrealized appreciation (depreciation), net | (2,374 | ) | 2,077 | 5,260 | 2,275 | 7,238 | ||||||||||||||
Balance, end of period | $ | 164,976 | $ | 272,640 | $ | 139,200 | $ | (130 | ) | $ | 576,686 | |||||||||
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | (59 | ) | $ | (2,977 | ) | $ | 5,261 | $ | 2,143 | $ | 4,368 |
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) | 110,595 | 169 | 110,764 | — | ||||||||||||
Sales/settlements(2) | (38,303 | ) | — | (38,303 | ) | (1,000 | ) | |||||||||
Expired contingent considerations | — | — | — | (1,000 | ) | |||||||||||
Realized and unrealized appreciation (depreciation), net | 858 | 2,860 | 3,718 | (20,156 | ) | |||||||||||
Balance, end of period | $ | 162,261 | $ | 36,439 | $ | 198,700 | $ | — | ||||||||
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date | $ | 29 | $ | 3,029 | $ | 3,058 | $ | — |
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 | — | 48,646 | — | — | 48,646 | |||||||||||||||
Transfer out | (6,581 | ) | (100,228 | ) | — | (4 | ) | (106,813 | ) | |||||||||||
Purchases(1) | 6,692 | 224,600 | 88,000 | — | 319,292 | |||||||||||||||
Sales(2) | (3,701 | ) | (114,286 | ) | (45,000 | ) | — | (162,987 | ) | |||||||||||
Additions(3) | — | 14,479 | — | 1,393 | 15,872 | |||||||||||||||
Settlements, net | — | — | — | (976 | ) | (976 | ) | |||||||||||||
Amortized discounts/premiums | — | 132 | — | 317 | 449 | |||||||||||||||
Realized and unrealized appreciation, net | 29,758 | 3,980 | 9,314 | 3,105 | 46,157 | |||||||||||||||
Balance, end of period | $ | 156,858 | $ | 319,576 | $ | 224,010 | $ | 1,127 | $ | 701,571 | ||||||||||
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | 19,175 | $ | (429 | ) | $ | 9,314 | $ | (787 | ) | $ | 27,273 |
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 | $ | 55,752 | $ | 51,703 | $ | 107,455 | $ | 40,831 | ||||||||
Purchases(1) | 11 | 9,000 | 9,011 | — | ||||||||||||
Sales/settlements(2) | (3,236 | ) | — | (3,236 | ) | (1,000 | ) | |||||||||
Realized and unrealized appreciation (depreciation), net | 3,410 | (27,293 | ) | (23,883 | ) | (17,486 | ) | |||||||||
Balance, end of period | $ | 55,937 | $ | 33,410 | $ | 89,347 | $ | 22,345 | ||||||||
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date | $ | 2,043 | $ | (7,293 | ) | $ | (5,250 | ) | $ | (17,486 | ) |
Level III Assets of Consolidated Funds | Equity Securities | Fixed Income | Partnership Interests | Derivatives, Net | Total | |||||||||||||||
Balance, beginning of period | $ | 129,809 | $ | 249,490 | $ | 86,902 | $ | (10,307 | ) | $ | 455,894 | |||||||||
Transfer in | 15,760 | 64,796 | — | — | 80,556 | |||||||||||||||
Transfer out | (344 | ) | (75,192 | ) | — | — | (75,536 | ) | ||||||||||||
Purchases(1) | 15,839 | 132,958 | 34,533 | — | 183,330 | |||||||||||||||
Sales(2) | (290 | ) | (85,430 | ) | (3,233 | ) | — | (88,953 | ) | |||||||||||
Settlements, net | — | — | — | 45 | 45 | |||||||||||||||
Amortized discounts/premiums | — | 1,103 | — | 298 | 1,401 | |||||||||||||||
Realized and unrealized appreciation (depreciation), net | 4,202 | (15,085 | ) | 20,998 | 9,834 | 19,949 | ||||||||||||||
Balance, end of period | $ | 164,976 | $ | 272,640 | $ | 139,200 | $ | (130 | ) | $ | 576,686 | |||||||||
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | 4,385 | $ | (10,760 | ) | $ | 20,998 | $ | 8,617 | $ | 23,240 |
Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | ||||||
Assets | |||||||||
Partnership interests | $ | 36,439 | Other | N/A | N/A | ||||
Collateralized loan obligations | 162,261 | Broker quotes and/or 3rd party pricing services | N/A | N/A | |||||
Total | $ | 198,700 |
Level III Measurements of the Company | Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Equity securities | $ | 14,704 | Transaction price(1) | N/A | N/A | N/A | ||||||||||||||||||||||||||
32,120 | Discounted Cash Flow | Discount Rates | 14.0% - 20.0% | 14.4% | ||||||||||||||||||||||||||||
42,409 | Market Approach | Multiple of Book Value | 1.5x | N/A | ||||||||||||||||||||||||||||
Partnership interests | 2,575 | Other | N/A | N/A | N/A | |||||||||||||||||||||||||||
Collateralized loan obligations | 31,947 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | |||||||||||||||||||||||||||
Other fixed income | 21,583 | Other | N/A | N/A | N/A | |||||||||||||||||||||||||||
Total | $ | 145,338 |
Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | ||||||
Assets | |||||||||
Partnership interests | $ | 33,410 | Other | N/A | N/A | ||||
Collateralized loan obligations | 89,111 | Broker quotes and/or 3rd party pricing services | N/A | N/A | |||||
Total | $ | 122,521 | |||||||
Liabilities | |||||||||
Contingent consideration liabilities | |||||||||
$ | 20,278 | Other | N/A | N/A | |||||
1,878 | Discounted cash flow | Discount rate | 6.5% | ||||||
Total | $ | 22,156 |
Level III Measurements of the Consolidated Funds | Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
$ | 236 | Market approach | EBITDA multiple(2) | 1.6x - 22.2x | 16.3x | |||||||||||||||||||||||||||
775 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||||
229,623 | Transaction price(1) | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Partnership interest | 243,452 | Discounted cash flow | Discount rate | 23.8% | 23.8% | |||||||||||||||||||||||||||
Fixed income securities | ||||||||||||||||||||||||||||||||
433,803 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||||
3,929 | Market approach | EBITDA multiple(2) | 6.5x - 7.8x | 7.2x | ||||||||||||||||||||||||||||
96,092 | Income approach | Yield | 2.7% - 37.2% | 7.6% | ||||||||||||||||||||||||||||
26,556 | Other | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Total assets | $ | 1,034,466 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative instruments | $ | (2,101) | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||
Total liabilities | $ | (2,101) |
Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||
Assets | |||||||||||
Equity securities | |||||||||||
$ | 57,562 | Enterprise value market multiple analysis | EBITDA multiple(2) | 2.8x | 2.8x | ||||||
61,215 | Market approach (comparable companies) | Net income multiple Illiquidity discount | 30.0x - 45.0x 25.0% | 34.7x 25.0% | |||||||
224,010 | Discounted cash flow | Discount rate | 18.5% | 18.5% | |||||||
38,081 | Recent transaction price(1) | N/A | N/A | N/A | |||||||
Fixed income securities | |||||||||||
238,764 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | |||||||
80,590 | Income approach | Yield | 4.9% - 14.3% | 9.4% | |||||||
222 | Market approach (comparable companies) | EBITDA multiple(2) | 5.6x | 5.6x | |||||||
Derivative instruments of Consolidated Funds | 1,328 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||
Total assets | $ | 701,772 | |||||||||
Liabilities | |||||||||||
Derivatives instruments of Consolidated Funds | $ | (201 | ) | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||
Total liabilities | $ | (201 | ) |
Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||
Assets | |||||||||||
Equity securities | |||||||||||
$ | 43,011 | Enterprise value market multiple analysis | EBITDA multiple(2) | 2.0x - 11.2x | 2.3x | ||||||
32,598 | Market approach (comparable companies) | Net income multiple Illiquidity discount | 30.0x - 40.0x 25.0% | 35.0x 25.0% | |||||||
421 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | |||||||
171,696 | Discounted cash flow | Discount rate | 20% | 20% | |||||||
54,660 | Recent transaction price(1) | N/A | N/A | N/A | |||||||
Fixed income securities | |||||||||||
170,231 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | |||||||
6,693 | Enterprise value market multiple analysis | EBITDA multiple(2) | 7.1x | 7.1x | |||||||
5,473 | Income approach | Collection rates | 1.2x | 1.2x | |||||||
28,595 | Income approach | Yield | 6.0% - 13.6% | 10.9% | |||||||
24,052 | Discounted cash flow | Discount rate | 7.8% - 15.3% | 11.1% | |||||||
1,776 | Market approach (comparable companies) | EBITDA multiple(2) | 6.5x | 6.5x | |||||||
4,887 | Recent transaction price(1) | N/A | N/A | N/A | |||||||
546 | Market approach | EBITDA multiple(2) | 6.1x | 6.1x | |||||||
Derivative instruments of Consolidated Funds | 291 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||
Total assets | $ | 544,930 | |||||||||
Liabilities | |||||||||||
Derivatives instruments of Consolidated Funds | $ | (2,999 | ) | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||
Total liabilities | $ | (2,999 | ) |
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 interests | 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 | ||||||||||||||||||||||||||||||||
Derivative instruments | $ | (44) | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||
Total liabilities | $ | (44) |
As of September 30, 2017 | As of December 31, 2016 | |||||||||||||||
Segment | Fair Value | Unfunded Commitments | Fair Value | Unfunded Commitments | ||||||||||||
Credit Group | $ | 77,220 | $ | 79,303 | $ | 53,131 | $ | 30,896 | ||||||||
Private Equity Group | 188,615 | 91,311 | 181,096 | 96,687 | ||||||||||||
Real Estate Group | 83,484 | 48,816 | 71,669 | 35,708 | ||||||||||||
Non-core investments(1) | 32,291 | 20,023 | 19,819 | 34,500 | ||||||||||||
Totals | $ | 381,610 | $ | 239,453 | $ | 325,715 | $ | 197,791 |
As of March 31, 2021 | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 49,594 | $ | 2,897 | $ | 23,039 | $ | 746 | $ | 30,040 | $ | 1,440 | $ | 39,362 | $ | 1,565 | ||||||||||||||||||||||||||||||||||
Total derivatives, at fair value(2) | $ | 49,594 | $ | 2,897 | $ | 23,039 | $ | 746 | $ | 30,040 | $ | 1,440 | $ | 39,362 | $ | 1,565 |
As of March 31, 2021 | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Funds | Notional(1) | Fair Value | Notional(1) | Fair Value | Notional(1) | Fair Value | Notional(1) | Fair Value | ||||||||||||||||||||||||||||||||||||||||||
Warrants | $ | 0 | $ | 0 | $ | 230,000 | $ | 17,500 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||||||
Asset swap - other | 47,775 | 0 | 42,688 | 2,101 | 7,600 | 1,104 | 540 | 44 | ||||||||||||||||||||||||||||||||||||||||||
Total derivatives, at fair value(3) | $ | 47,775 | $ | 0 | $ | 272,688 | $ | 19,601 | $ | 7,600 | $ | 1,104 | $ | 540 | $ | 44 |
As of September 30, 2017 | As of December 31, 2016 | |||||||||||||||||||||||||||||||
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 | $ | 37,907 | $ | 1,310 | $ | 124,536 | $ | 4,194 | $ | 62,830 | $ | 3,171 | $ | — | $ | — | ||||||||||||||||
Total derivatives, at fair value(2) | $ | 37,907 | $ | 1,310 | $ | 124,536 | $ | 4,194 | $ | 62,830 | $ | 3,171 | $ | — | $ | — |
As of September 30, 2017 | As of December 31, 2016 | |||||||||||||||||||||||||||||||
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 | $ | — | $ | — | $ | — | $ | — | $ | 25,304 | $ | 529 | $ | — | $ | — | ||||||||||||||||
Other financial instruments | 6,071 | 1,328 | (2,368 | ) | (201 | ) | 3,575 | 291 | (204 | ) | (2,999 | ) | ||||||||||||||||||||
Total derivatives, at fair value(3) | 6,071 | 1,328 | (2,368 | ) | (201 | ) | 28,879 | 820 | (204 | ) | (2,999 | ) | ||||||||||||||||||||
Other—equity(4) | — | — | — | — | 253 | 24 | — | — | ||||||||||||||||||||||||
Total | $ | 6,071 | $ | 1,328 | $ | (2,368 | ) | $ | (201 | ) | $ | 29,132 | $ | 844 | $ | (204 | ) | $ | (2,999 | ) |
As of March 31, 2021 | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
Debt Origination Date | Maturity | Original Borrowing Amount | Carrying Value | Interest Rate | Carrying Value | Interest Rate | |||||||||||||||||||||||||||||||||||
Credit Facility(1) | Revolver | 3/31/2026 | N/A | $ | 168,000 | 3.38% | $ | 0 | 0% | ||||||||||||||||||||||||||||||||
2024 Senior Notes(2) | 10/8/2014 | 10/8/2024 | $ | 250,000 | 247,455 | 4.21 | 247,285 | 4.21 | |||||||||||||||||||||||||||||||||
2030 Senior Notes(3) | 6/15/2020 | 6/15/2030 | 400,000 | 395,824 | 3.28 | 395,713 | 3.28 | ||||||||||||||||||||||||||||||||||
Total debt obligations | $ | 811,279 | $ | 642,998 |
As of September 30, 2017 | As of December 31, 2016 | ||||||||||||||||||
Debt Origination Date | Maturity | Original Borrowing Amount | Carrying Value | Interest Rate | Carrying Value | Interest Rate | |||||||||||||
Credit Facility(1) | Revolver | 2/24/2022 | N/A | $ | 110,000 | 2.75% | $ | — | —% | ||||||||||
Senior Notes(2) | 10/8/2014 | 10/8/2024 | $ | 250,000 | 245,149 | 4.21% | 244,684 | 4.21% | |||||||||||
2015 Term Loan(3) | 9/2/2015 | 7/29/2026 | $ | 35,205 | 35,032 | 2.79% | 35,063 | 2.74% | |||||||||||
2016 Term Loan(4) | 12/21/2016 | 1/15/2029 | $ | 26,376 | 25,999 | 3.02% | 26,037 | 2.66% | |||||||||||
2017 Term Loan A(4) | 3/22/2017 | 1/22/2028 | $ | 17,600 | 17,474 | 2.70% | N/A | N/A | |||||||||||
2017 Term Loan B(4) | 5/10/2017 | 10/15/2029 | $ | 35,198 | 35,147 | 2.63% | N/A | N/A | |||||||||||
2017 Term Loan C(4) | 6/22/2017 | 7/30/2029 | $ | 17,211 | 17,206 | 2.75% | N/A | N/A | |||||||||||
Total debt obligations | $ | 486,007 | $ | 305,784 |
Credit Facility | Senior Notes | ||||||||||||||||||||||
Unamortized debt issuance costs as of December 31, 2020 | $ | 5,232 | $ | 4,283 | |||||||||||||||||||
Debt issuance costs incurred | 1,189 | 0 | |||||||||||||||||||||
Amortization of debt issuance costs | (310) | (149) | |||||||||||||||||||||
Unamortized debt issuance costs as of March 31, 2021 | $ | 6,111 | $ | 4,134 |
Credit Facility | Senior Notes | Term Loans | |||||||||
Unamortized debt issuance costs as of December 31, 2016 | $ | 4,800 | $ | 1,803 | $ | 526 | |||||
Debt issuance costs incurred | 3,387 | — | 253 | ||||||||
Amortization of debt issuance costs | (1,258 | ) | (174 | ) | (48 | ) | |||||
Unamortized debt issuance costs as of September 30, 2017 | $ | 6,929 | $ | 1,629 | $ | 731 |
As of March 31, 2021 | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||
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) | $ | 9,614,038 | $ | 9,553,375 | 9.9 | $ | 9,796,442 | $ | 9,665,804 | 10.1 | |||||||||||||||||||||||||
Subordinated notes(2) | 469,415 | 286,264 | 10.0 | 482,391 | 292,272 | 10.2 | |||||||||||||||||||||||||||||
Total loan obligations of Consolidated CLOs | $ | 10,083,453 | $ | 9,839,639 | $ | 10,278,833 | $ | 9,958,076 |
As of September 30, 2017 | As of December 31, 2016 | ||||||||||||||||||
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) | $ | 4,298,009 | $ | 4,279,766 | 10.56 | $ | 2,839,779 | $ | 2,841,440 | 9.68 | |||||||||
Subordinated notes(2) | 274,341 | 196,877 | 11.15 | 284,046 | 189,672 | 9.97 | |||||||||||||
Total loan obligations of Consolidated CLOs | $ | 4,572,350 | $ | 4,476,643 | $ | 3,123,825 | $ | 3,031,112 |
As of March 31, 2021 | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Consolidated Funds' Debt Facilities | Maturity Date | Total Capacity | Outstanding Loan(1) | Effective Rate | Outstanding Loan(1) | Effective Rate | ||||||||||||||||||||||||||||||||||||||
Credit Facilities: | ||||||||||||||||||||||||||||||||||||||||||||
3/4/2022 | $ | 71,500 | $ | 71,500 | 1.59% | $ | 71,500 | 1.59% | ||||||||||||||||||||||||||||||||||||
1/1/2023 | 18,000 | 17,909 | 1.69 | 17,909 | 1.75 | |||||||||||||||||||||||||||||||||||||||
10/14/2021 | 75,000 | 21,000 | 2.70 | 32,500 | 2.75 | |||||||||||||||||||||||||||||||||||||||
Total borrowings of Consolidated Funds | $ | 110,409 | $ | 121,909 |
As of September 30, 2017 | As of December 31, 2016 | ||||||||||||||||||
Consolidated Funds' Debt Facilities | Maturity Date | Total Capacity | Outstanding Loan(1) | Effective Rate | Outstanding Loan(1) | Effective Rate | |||||||||||||
Credit Facilities: | |||||||||||||||||||
1/1/2023 | $ | 18,000 | $ | 12,942 | 2.75% | $ | 12,942 | 2.38% | |||||||||||
6/30/2018 | 47,284 | 30,599 | 1.55% | (2) | 42,128 | 1.55% | (2) | ||||||||||||
3/7/2018 | 71,500 | 71,500 | 2.62% | N/A | N/A | ||||||||||||||
Revolving Term Loan | 8/19/2019 | 11,429 | 6,220 | 5.74% | N/A | N/A | |||||||||||||
Total borrowings | $ | 121,261 | $ | 55,070 |
As of March 31, | As of December 31, | |||||||||||||||||||
Classification | 2021 | 2020 | ||||||||||||||||||
Operating lease assets | Right-of-use operating lease assets | $ | 157,908 | $ | 154,742 | |||||||||||||||
Finance lease assets | Other assets(1) | 1,260 | 1,386 | |||||||||||||||||
Total lease assets | $ | 159,168 | $ | 156,128 | ||||||||||||||||
Operating lease liabilities | Operating lease liabilities | $ | 186,594 | $ | 180,236 | |||||||||||||||
Finance lease obligations | Accounts payable, accrued expenses and other liabilities | 912 | 1,273 | |||||||||||||||||
Total lease liabilities | $ | 187,506 | $ | 181,509 |
Maturity of lease liabilities | Operating Leases | Finance Leases | ||||||||||||
2021 | $ | 27,311 | $ | 150 | ||||||||||
2022 | 39,825 | 485 | ||||||||||||
2023 | 35,795 | 158 | ||||||||||||
2024 | 32,844 | 156 | ||||||||||||
2025 | 31,717 | 6 | ||||||||||||
After 2025 | 38,665 | 0 | ||||||||||||
Total future payments | 206,157 | 955 | ||||||||||||
Less: interest | 19,563 | 43 | ||||||||||||
Total lease liabilities | $ | 186,594 | $ | 912 |
Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||
Classification | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||
Operating lease expense | General, administrative and other expenses | $ | 8,493 | $ | 7,632 | |||||||||||||||||||||||||||||||||
Finance lease expense: | ||||||||||||||||||||||||||||||||||||||
Amortization of finance lease assets | General, administrative and other expenses | 126 | 94 | |||||||||||||||||||||||||||||||||||
Interest on finance lease liabilities | Interest expense | 10 | 11 | |||||||||||||||||||||||||||||||||||
Total lease expense | $ | 8,629 | $ | 7,737 |
Three months ended March 31, | ||||||||||||||
Other information | 2021 | 2020 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows for operating leases | $ | 8,419 | $ | 8,178 | ||||||||||
Operating cash flows for finance leases | 25 | 6 | ||||||||||||
Financing cash flows for finance leases | 341 | 36 | ||||||||||||
Leased assets obtained in exchange for new operating lease liabilities | 13,374 | 8,744 |
As of March 31, | As of December 31, | |||||||||||||
Lease term and discount rate | 2021 | 2020 | ||||||||||||
Weighted-average remaining lease terms (in years): | ||||||||||||||
Operating leases | 5.7 | 6.0 | ||||||||||||
Finance leases | 2.7 | 2.6 | ||||||||||||
Weighted-average discount rate: | ||||||||||||||
Operating leases | 3.43 | % | 3.59 | % | ||||||||||
Finance leases | 3.21 | % | 3.26 | % |
As of March 31, | As of December 31, | ||||||||||
2021 | 2020 | ||||||||||
Due from affiliates: | |||||||||||
Management fees receivable from non-consolidated funds | $ | 244,018 | $ | 308,581 | |||||||
Incentive fee receivable from non-consolidated funds | 17,214 | 21,495 | |||||||||
Payments made on behalf of and amounts due from non-consolidated funds and employees | 74,218 | 75,811 | |||||||||
Due from affiliates—Company | $ | 335,450 | $ | 405,887 | |||||||
Amounts due from portfolio companies and non-consolidated funds | $ | 16,240 | $ | 17,172 | |||||||
Due from affiliates—Consolidated Funds | $ | 16,240 | $ | 17,172 | |||||||
Due to affiliates: | |||||||||||
Management fee received in advance and rebates payable to non-consolidated funds | $ | 3,280 | $ | 4,808 | |||||||
Tax receivable agreement liability | 61,125 | 62,505 | |||||||||
Undistributed carried interest and incentive fees | 7,933 | 27,322 | |||||||||
Payments made by non-consolidated funds on behalf of and payable by the Company | 5,479 | 5,551 | |||||||||
Due to affiliates—Company | $ | 77,817 | $ | 100,186 | |||||||
Amounts due to portfolio companies and non-consolidated funds | $ | 622 | $ | 0 | |||||||
Due to affiliates—Consolidated Funds | $ | 622 | $ | 0 |
As of September 30, | As of December 31, | ||||||
2017 | 2016 | ||||||
Due from affiliates: | |||||||
Management fees receivable from non-consolidated funds | $ | 120,242 | $ | 123,781 | |||
Payments made on behalf of and amounts due from non-consolidated funds and employees | 41,190 | 39,155 | |||||
Due from affiliates—Company | $ | 161,432 | $ | 162,936 | |||
Amounts due from portfolio companies and non-consolidated funds | $ | 8,047 | $ | 3,592 | |||
Due from affiliates—Consolidated Funds | $ | 8,047 | $ | 3,592 | |||
Due to affiliates: | |||||||
Management fee rebate payable to non-consolidated funds | $ | 4,822 | $ | 7,914 | |||
Management fees received in advance | 4,608 | 1,788 | |||||
Tax receivable agreement liability | 4,748 | 4,748 | |||||
Payments made by non-consolidated funds on behalf of and payable by the Company | 3,029 | 3,114 | |||||
Due to affiliates—Company | $ | 17,207 | $ | 17,564 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Options | 21,022,924 | 22,164,772 | 21,170,880 | 23,008,147 | Options | 0 | 12,859,532 | |||||||||||||||||||||||||||||||||
Restricted units | 13,742,856 | — | 14,223,345 | 62,909 | Restricted units | 0 | 16,377,716 | |||||||||||||||||||||||||||||||||
AOG units | 130,192,448 | 130,852,861 | 130,280,878 | 131,858,404 | ||||||||||||||||||||||||||||||||||||
AOG Units | AOG Units | 112,353,043 | 116,328,089 |
Three months ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Basic earnings per share of Class A common stock: | |||||||||||||||||||||||||||||
Net income (loss) attributable to Ares Management Corporation Class A common stockholders | $ | 52,953 | $ | (36,461) | |||||||||||||||||||||||||
Distributions on unvested restricted units | (3,255) | (2,290) | |||||||||||||||||||||||||||
Net income (loss) available to Class A common stockholders | $ | 49,698 | $ | (38,751) | |||||||||||||||||||||||||
Basic weighted-average shares of Class A common stock | 149,271,822 | 118,366,539 | |||||||||||||||||||||||||||
Basic earnings (loss) per share of Class A common stock | $ | 0.33 | $ | (0.33) | |||||||||||||||||||||||||
Diluted earnings per share of Class A common stock: | |||||||||||||||||||||||||||||
Net income (loss) available to Class A common stockholders | $ | 52,953 | $ | (36,461) | |||||||||||||||||||||||||
Net income (loss) attributable to Ares Management Corporation Class A common stockholders | $ | 52,953 | $ | (36,461) | |||||||||||||||||||||||||
Effect of dilutive shares: | |||||||||||||||||||||||||||||
Restricted units | 9,218,424 | 0 | |||||||||||||||||||||||||||
Options | 5,174,138 | 0 | |||||||||||||||||||||||||||
Diluted weighted-average shares of Class A common stock | 163,664,384 | 118,366,539 | |||||||||||||||||||||||||||
Diluted earnings (loss) per share of Class A common stock | $ | 0.32 | $ | (0.33) | |||||||||||||||||||||||||
Dividend declared and paid per Class A common stock | $ | 0.47 | $ | 0.40 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income attributable to Ares Management, L.P. common unitholders | $ | 22,413 | $ | 36,554 | $ | 20,307 | $ | 71,042 | |||||||
Earnings distributed to participating securities (restricted units) | (1,003 | ) | (480 | ) | (2,248 | ) | (895 | ) | |||||||
Preferred stock dividends(1) | — | — | — | (8 | ) | ||||||||||
Net income available to common unitholders | $ | 21,410 | $ | 36,074 | $ | 18,059 | $ | 70,139 | |||||||
Basic weighted-average common units | 82,166,852 | 80,793,984 | 81,704,815 | 80,741,460 | |||||||||||
Basic earnings per common unit | $ | 0.26 | $ | 0.45 | $ | 0.22 | $ | 0.87 | |||||||
Net income attributable to Ares Management, L.P. common unitholders | $ | 22,413 | $ | 36,554 | $ | 20,307 | $ | 71,042 | |||||||
Earnings distributed to participating securities (restricted units) | (1,003 | ) | — | (2,248 | ) | — | |||||||||
Preferred stock dividends(1) | — | — | — | (8 | ) | ||||||||||
Net income available to common unitholders | $ | 21,410 | $ | 36,554 | $ | 18,059 | $ | 71,034 | |||||||
Effect of dilutive units: | |||||||||||||||
Restricted units | — | 3,670,607 | — | 1,925,589 | |||||||||||
Diluted weighted-average common units | 82,166,852 | 84,464,591 | 81,704,815 | 82,667,049 | |||||||||||
Diluted earnings per common unit | $ | 0.26 | $ | 0.43 | $ | 0.22 | $ | 0.86 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Restricted units | $ | 14,555 | $ | 5,350 | $ | 40,375 | $ | 14,797 | Restricted units | $ | 44,087 | $ | 28,381 | |||||||||||||||||||||||||||||||||||||
Restricted units with a market condition | Restricted units with a market condition | 11,562 | 4,133 | |||||||||||||||||||||||||||||||||||||||||||||||
Options | 3,224 | 2,693 | 10,637 | 11,153 | Options | 0 | 43 | |||||||||||||||||||||||||||||||||||||||||||
Phantom units | 312 | 433 | 1,085 | 1,235 | ||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation expense | $ | 18,091 | $ | 8,476 | $ | 52,097 | $ | 27,185 | Equity-based compensation expense | $ | 55,649 | $ | 32,557 |
Restricted Units | Weighted Average Grant Date Fair Value Per Unit | ||||||||||||||||
Balance - January 1, 2021 | 16,299,664 | $ | 24.30 | ||||||||||||||
Granted | 9,012,823 | 45.63 | |||||||||||||||
Vested | (4,191,773) | 21.85 | |||||||||||||||
Forfeited | (4,269) | 50.75 | |||||||||||||||
Balance - March 31, 2021 | 21,116,445 | $ | 33.80 |
Restricted Units | Weighted Average Grant Date Fair Value Per Unit | |||||
Balance - January 1, 2017 | 8,058,372 | $ | 16.38 | |||
Granted | 7,944,144 | 18.61 | ||||
Vested | (1,833,422 | ) | 16.56 | |||
Forfeited | (426,238 | ) | 17.82 | |||
Balance - September 30, 2017 | 13,742,856 | $ | 17.58 |
Closing price of the Company's common shares as of valuation date | $45.76 | |||||||
Risk-free interest rate | 0.88% | |||||||
Volatility | 35.0% | |||||||
Dividend yield | 3.5% | |||||||
Cost of equity | 10.0% |
Market Condition Awards Units | Weighted Average Grant Date Fair Value Per Unit | ||||||||||
Balance - January 1, 2021 | 0 | $ | 0 | ||||||||
Granted | 2,150,000 | 32.86 | |||||||||
Vested | 0 | 0 | |||||||||
Forfeited | 0 | 0 | |||||||||
Balance - March 31, 2021 | 2,150,000 | $ | 32.86 |
Options | Weighted Average Exercise Price | Weighted Average Remaining Life (in years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Balance - January 1, 2021 | 8,312,203 | $ | 18.99 | 3.4 | $ | 233,251 | |||||||||||||||||
Granted | 0 | 0 | — | — | |||||||||||||||||||
Exercised | 0 | 0 | — | — | |||||||||||||||||||
Expired | 0 | 0 | — | — | |||||||||||||||||||
Forfeited | 0 | 0 | — | — | |||||||||||||||||||
Balance - March 31, 2021 | 8,312,203 | 18.99 | 3.1 | $ | 307,895 | ||||||||||||||||||
Exercisable at March 31, 2021 | 8,312,203 | $ | 18.99 | 3.1 | $ | 307,895 |
Options | Weighted Average Exercise Price | Weighted Average Remaining Life (in years) | Aggregate Intrinsic Value | |||||||||
Balance - January 1, 2017 | 22,232,134 | $ | 18.99 | 7.35 | ||||||||
Granted | — | — | — | |||||||||
Exercised | (54,500 | ) | 19.00 | — | ||||||||
Expired | (433,609 | ) | 19.00 | — | ||||||||
Forfeited | (721,101 | ) | 19.00 | — | ||||||||
Balance - September 30, 2017 | 21,022,924 | $ | 18.99 | 6.56 | $ | — | ||||||
Exercisable at September 30, 2017 | 7,106,989 | $ | 19.00 | 6.56 | $ | — |
Phantom Units | Weighted Average Grant Date Fair Value Per Unit | ||||||
Balance - January 1, 2017 | 266,138 | $ | 19.00 | ||||
Vested | (87,222 | ) | 19.00 | ||||
Forfeited | (20,872 | ) | 19.00 | ||||
Balance - September 30, 2017 | 158,044 | $ | 19.00 |
Class A Common Stock | Class B Common Stock | Class C Common Stock | Total | ||||||||||||||||||||
Balance - January 1, 2021 | 147,182,562 | 1,000 | 112,447,618 | 259,631,180 | |||||||||||||||||||
Exchanges of AOG Units | 283,724 | 0 | (283,724) | 0 | |||||||||||||||||||
Vesting of restricted stock awards, net of shares withheld for tax | 2,374,692 | 0 | 0 | 2,374,692 | |||||||||||||||||||
Balance - March 31, 2021 | 149,840,978 | 1,000 | 112,163,894 | 262,005,872 |
Daily Average Ownership | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of March 31, 2021 | As of December 31, 2020 | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
AOG Units | Direct Ownership Interest | AOG Units | Direct Ownership Interest | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Ares Management Corporation | 149,840,978 | 57.19 | % | 147,182,562 | 56.69 | % | 57.06 | % | 50.43 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Ares Owners Holding L.P. | 112,163,894 | 42.81 | 112,447,618 | 43.31 | 42.94 | 49.57 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 262,004,872 | 100.00 | % | 259,630,180 | 100.00 | % |
Daily Average Ownership | ||||||||||||||||||||||||
As of September 30, 2017 | As of December 31, 2016 | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
AOG Units | Direct Ownership Interest | AOG Units | Direct Ownership Interest | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Ares Management, L.P. | 82,211,302 | 38.71 | % | 80,814,732 | 38.26 | % | 38.69 | % | 38.17 | % | 38.54 | % | 37.98 | % | ||||||||||
Ares Owners Holding L.P. | 117,673,223 | 55.40 | % | 117,928,313 | 55.82 | % | 55.42 | % | 55.92 | % | 55.56 | % | 56.14 | % | ||||||||||
Affiliate of Alleghany Corporation | 12,500,000 | 5.89 | % | 12,500,000 | 5.92 | % | 5.89 | % | 5.91 | % | 5.90 | % | 5.88 | % | ||||||||||
Total | 212,384,525 | 100.00 | % | 211,243,045 | 100.00 | % |
Total | |||||
Balance - January 1, 2021 | $ | 100,366 | |||
Net income | 32 | ||||
Currency translation adjustment, net of tax | (590) | ||||
Balance - March 31, 2021 | $ | 99,808 |
Total | |||||
Balance - January 1, 2021 | $ | 0 | |||
Redemption value | 930,924 | ||||
Balance - March 31, 2021 | $ | 930,924 |
Three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total Segments | OMG | Total | |||||||||||||||||||||||||||||||||||
Management fees | $ | 232,877 | $ | 49,331 | $ | 29,632 | $ | 15,623 | $ | 327,463 | $ | 0 | $ | 327,463 | |||||||||||||||||||||||||||
Other fees | 5,969 | 108 | 648 | 79 | 6,804 | 0 | 6,804 | ||||||||||||||||||||||||||||||||||
Compensation and benefits | (80,365) | (20,685) | (15,941) | (4,740) | (121,731) | (44,407) | (166,138) | ||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (10,809) | (4,868) | (3,295) | (2,035) | (21,007) | (18,656) | (39,663) | ||||||||||||||||||||||||||||||||||
Fee related earnings | 147,672 | 23,886 | 11,044 | 8,927 | 191,529 | (63,063) | 128,466 | ||||||||||||||||||||||||||||||||||
Performance income—realized | 3,816 | 71,218 | 1,947 | 0 | 76,981 | 0 | 76,981 | ||||||||||||||||||||||||||||||||||
Performance related compensation—realized | (2,893) | (57,026) | (1,177) | 0 | (61,096) | 0 | (61,096) | ||||||||||||||||||||||||||||||||||
Realized net performance income | 923 | 14,192 | 770 | 0 | 15,885 | 0 | 15,885 | ||||||||||||||||||||||||||||||||||
Investment loss—realized | 0 | (7,170) | (222) | 0 | (7,392) | 0 | (7,392) | ||||||||||||||||||||||||||||||||||
Interest and other investment income—realized | 3,669 | 444 | 2,028 | 33 | 6,174 | 355 | 6,529 | ||||||||||||||||||||||||||||||||||
Interest expense | (1,515) | (1,663) | (1,125) | (2,302) | (6,605) | (90) | (6,695) | ||||||||||||||||||||||||||||||||||
Realized net investment income (loss) | 2,154 | (8,389) | 681 | (2,269) | (7,823) | 265 | (7,558) | ||||||||||||||||||||||||||||||||||
Realized income | $ | 150,749 | $ | 29,689 | $ | 12,495 | $ | 6,658 | $ | 199,591 | $ | (62,798) | $ | 136,793 | |||||||||||||||||||||||||||
Three months ended March 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total Segments | OMG | Total | |||||||||||||||||||||||||||||||||||
Management fees | $ | 197,437 | $ | 52,157 | $ | 24,184 | $ | 0 | $ | 273,778 | $ | 0 | $ | 273,778 | |||||||||||||||||||||||||||
Other fees | 3,058 | 110 | 704 | 0 | 3,872 | 0 | 3,872 | ||||||||||||||||||||||||||||||||||
Compensation and benefits | (70,925) | (19,596) | (12,413) | 0 | (102,934) | (36,426) | (139,360) | ||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (15,313) | (5,633) | (2,935) | 0 | (23,881) | (21,305) | (45,186) | ||||||||||||||||||||||||||||||||||
Fee related earnings | 114,257 | 27,038 | 9,540 | 0 | 150,835 | (57,731) | 93,104 | ||||||||||||||||||||||||||||||||||
Performance income—realized | 9,016 | 116,154 | 26,600 | 0 | 151,770 | 0 | 151,770 | ||||||||||||||||||||||||||||||||||
Performance related compensation—realized | (7,899) | (92,924) | (17,170) | 0 | (117,993) | 0 | (117,993) | ||||||||||||||||||||||||||||||||||
Realized net performance income | 1,117 | 23,230 | 9,430 | 0 | 33,777 | 0 | 33,777 | ||||||||||||||||||||||||||||||||||
Investment income (loss)—realized | (843) | 11,470 | 1,290 | 0 | 11,917 | (5,698) | 6,219 | ||||||||||||||||||||||||||||||||||
Interest and other investment income—realized | 4,575 | 812 | 796 | 0 | 6,183 | 168 | 6,351 | ||||||||||||||||||||||||||||||||||
Interest expense | (1,715) | (1,643) | (971) | 0 | (4,329) | (977) | (5,306) | ||||||||||||||||||||||||||||||||||
Realized net investment income (loss) | 2,017 | 10,639 | 1,115 | 0 | 13,771 | (6,507) | 7,264 | ||||||||||||||||||||||||||||||||||
Realized income | $ | 117,391 | $ | 60,907 | $ | 20,085 | $ | 0 | $ | 198,383 | $ | (64,238) | $ | 134,145 | |||||||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Total Segments | OMG | Total | ||||||||||||||||||
Management fees (Credit Group includes ARCC Part I Fees of $24,036) | $ | 120,178 | $ | 51,313 | $ | 17,137 | $ | 188,628 | $ | — | $ | 188,628 | |||||||||||
Other fees | 5,668 | 449 | 27 | 6,144 | — | 6,144 | |||||||||||||||||
Compensation and benefits | (46,551 | ) | (19,256 | ) | (11,398 | ) | (77,205 | ) | (27,577 | ) | (104,782 | ) | |||||||||||
General, administrative and other expenses | (6,851 | ) | (4,655 | ) | (2,125 | ) | (13,631 | ) | (18,380 | ) | (32,011 | ) | |||||||||||
Fee related earnings | 72,444 | 27,851 | 3,641 | 103,936 | (45,957 | ) | 57,979 | ||||||||||||||||
Performance fees—realized | 3,296 | 173,304 | 2,389 | 178,989 | — | 178,989 | |||||||||||||||||
Performance fees—unrealized | 33,033 | (142,822 | ) | 20,366 | (89,423 | ) | — | (89,423 | ) | ||||||||||||||
Performance fee compensation—realized | (1,466 | ) | (138,657 | ) | (856 | ) | (140,979 | ) | — | (140,979 | ) | ||||||||||||
Performance fee compensation—unrealized | (19,820 | ) | 114,395 | (12,233 | ) | 82,342 | — | 82,342 | |||||||||||||||
Net performance fees | 15,043 | 6,220 | 9,666 | 30,929 | — | 30,929 | |||||||||||||||||
Investment income—realized | 6,206 | 14,268 | 1,997 | 22,471 | 18 | 22,489 | |||||||||||||||||
Investment income (loss)—unrealized | (1,123 | ) | (8,421 | ) | (767 | ) | (10,311 | ) | 4,357 | (5,954 | ) | ||||||||||||
Interest and other investment income (expense) | (540 | ) | 1,129 | 716 | 1,305 | 26 | 1,331 | ||||||||||||||||
Interest expense | (3,277 | ) | (1,229 | ) | (396 | ) | (4,902 | ) | (441 | ) | (5,343 | ) | |||||||||||
Net investment income | 1,266 | 5,747 | 1,550 | 8,563 | 3,960 | 12,523 | |||||||||||||||||
Performance related earnings | 16,309 | 11,967 | 11,216 | 39,492 | 3,960 | 43,452 | |||||||||||||||||
Economic net income | $ | 88,753 | $ | 39,818 | $ | 14,857 | $ | 143,428 | $ | (41,997 | ) | $ | 101,431 | ||||||||||
Distributable earnings | $ | 73,120 | $ | 75,809 | $ | 4,736 | $ | 153,665 | $ | (53,214 | ) | $ | 100,451 |
Credit Group | Private Equity Group | Real Estate Group | Total Segments | OMG | Total | ||||||||||||||||||
Management fees (Credit Group includes ARCC Part I Fees of $33,260) | $ | 115,794 | $ | 35,183 | $ | 17,819 | $ | 168,796 | $ | — | $ | 168,796 | |||||||||||
Other fees | 280 | 309 | 162 | 751 | — | 751 | |||||||||||||||||
Compensation and benefits | (45,222 | ) | (16,697 | ) | (9,459 | ) | (71,378 | ) | (25,960 | ) | (97,338 | ) | |||||||||||
General, administrative and other expenses | (7,274 | ) | (3,925 | ) | (2,289 | ) | (13,488 | ) | (13,386 | ) | (26,874 | ) | |||||||||||
Fee related earnings | 63,578 | 14,870 | 6,233 | 84,681 | (39,346 | ) | 45,335 | ||||||||||||||||
Performance fees—realized | 22,422 | 108,245 | 2,170 | 132,837 | — | 132,837 | |||||||||||||||||
Performance fees—unrealized | 11,152 | 16,569 | 4,647 | 32,368 | — | 32,368 | |||||||||||||||||
Performance fee compensation—realized | (7,241 | ) | (86,537 | ) | — | (93,778 | ) | — | (93,778 | ) | |||||||||||||
Performance fee compensation—unrealized | (11,686 | ) | (13,387 | ) | (4,322 | ) | (29,395 | ) | — | (29,395 | ) | ||||||||||||
Net performance fees | 14,647 | 24,890 | 2,495 | 42,032 | — | 42,032 | |||||||||||||||||
Investment income (loss)—realized | 588 | 11,267 | (151 | ) | 11,704 | (20,005 | ) | (8,301 | ) | ||||||||||||||
Investment income—unrealized | 5,460 | 7,066 | 6,211 | 18,737 | 15,979 | 34,716 | |||||||||||||||||
Interest and other investment income | 5,940 | 417 | 714 | 7,071 | 15 | 7,086 | |||||||||||||||||
Interest expense | (1,831 | ) | (1,399 | ) | (242 | ) | (3,472 | ) | (664 | ) | (4,136 | ) | |||||||||||
Net investment income (loss) | 10,157 | 17,351 | 6,532 | 34,040 | (4,675 | ) | 29,365 | ||||||||||||||||
Performance related earnings | 24,804 | 42,241 | 9,027 | 76,072 | (4,675 | ) | 71,397 | ||||||||||||||||
Economic net income | $ | 88,382 | $ | 57,111 | $ | 15,260 | $ | 160,753 | $ | (44,021 | ) | $ | 116,732 | ||||||||||
Distributable earnings | $ | 81,542 | $ | 45,481 | $ | 6,408 | $ | 133,431 | $ | (66,696 | ) | $ | 66,735 |
Credit Group | Private Equity Group | Real Estate Group | Total Segments | OMG | Total | ||||||||||||||||||
Management fees (Credit Group includes ARCC Part I Fees of $76,436) | $ | 354,179 | $ | 147,559 | $ | 49,231 | $ | 550,969 | $ | — | $ | 550,969 | |||||||||||
Other fees | 15,834 | 1,127 | 37 | 16,998 | — | 16,998 | |||||||||||||||||
Compensation and benefits | (142,647 | ) | (50,862 | ) | (30,848 | ) | (224,357 | ) | (84,881 | ) | (309,238 | ) | |||||||||||
General, administrative and other expenses | (22,766 | ) | (13,198 | ) | (7,947 | ) | (43,911 | ) | (56,729 | ) | (100,640 | ) | |||||||||||
Fee related earnings | 204,600 | 84,626 | 10,473 | 299,699 | (141,610 | ) | 158,089 | ||||||||||||||||
Performance fees—realized | 19,957 | 238,084 | 3,883 | 261,924 | — | 261,924 | |||||||||||||||||
Performance fees—unrealized | 41,062 | 118,162 | 64,243 | 223,467 | — | 223,467 | |||||||||||||||||
Performance fee compensation—realized | (8,649 | ) | (189,571 | ) | (1,033 | ) | (199,253 | ) | — | (199,253 | ) | ||||||||||||
Performance fee compensation—unrealized | (27,357 | ) | (95,131 | ) | (39,303 | ) | (161,791 | ) | — | (161,791 | ) | ||||||||||||
Net performance fees | 25,013 | 71,544 | 27,790 | 124,347 | — | 124,347 | |||||||||||||||||
Investment income—realized | 9,049 | 17,564 | 4,153 | 30,766 | 3,217 | 33,983 | |||||||||||||||||
Investment income (loss)—unrealized | 16 | 25,479 | (77 | ) | 25,418 | 222 | 25,640 | ||||||||||||||||
Interest and other investment income | 2,399 | 3,264 | 2,069 | 7,732 | 1,125 | 8,857 | |||||||||||||||||
Interest expense | (8,800 | ) | (4,139 | ) | (1,257 | ) | (14,196 | ) | (1,380 | ) | (15,576 | ) | |||||||||||
Net investment income | 2,664 | 42,168 | 4,888 | 49,720 | 3,184 | 52,904 | |||||||||||||||||
Performance related earnings | 27,677 | 113,712 | 32,678 | 174,067 | 3,184 | 177,251 | |||||||||||||||||
Economic net income | $ | 232,277 | $ | 198,338 | $ | 43,151 | $ | 473,766 | $ | (138,426 | ) | $ | 335,340 | ||||||||||
Distributable earnings | $ | 204,402 | $ | 145,696 | $ | 12,596 | $ | 362,694 | $ | (151,642 | ) | $ | 211,052 |
Credit Group | Private Equity Group | Real Estate Group | Total Segments | OMG | Total | ||||||||||||||||||
Management fees (Credit Group includes ARCC Part I Fees of $90,884) | $ | 332,182 | $ | 111,100 | $ | 50,794 | $ | 494,076 | $ | — | $ | 494,076 | |||||||||||
Other fees | 939 | 983 | 855 | 2,777 | — | 2,777 | |||||||||||||||||
Compensation and benefits | (135,068 | ) | (46,556 | ) | (31,327 | ) | (212,951 | ) | (77,225 | ) | (290,176 | ) | |||||||||||
General, administrative and other expenses | (19,383 | ) | (10,489 | ) | (8,241 | ) | (38,113 | ) | (44,616 | ) | (82,729 | ) | |||||||||||
Fee related earnings | 178,670 | 55,038 | 12,081 | 245,789 | (121,841 | ) | 123,948 | ||||||||||||||||
Performance fees—realized | 44,624 | 171,024 | 5,142 | 220,790 | — | 220,790 | |||||||||||||||||
Performance fees—unrealized | (1,544 | ) | 109,848 | 10,030 | 118,334 | — | 118,334 | ||||||||||||||||
Performance fee compensation—realized | (9,978 | ) | (136,761 | ) | (53 | ) | (146,792 | ) | — | (146,792 | ) | ||||||||||||
Performance fee compensation—unrealized | (9,853 | ) | (88,766 | ) | (8,328 | ) | (106,947 | ) | — | (106,947 | ) | ||||||||||||
Net performance fees | 23,249 | 55,345 | 6,791 | 85,385 | — | 85,385 | |||||||||||||||||
Investment income (loss)—realized | 390 | 14,641 | 412 | 15,443 | (20,093 | ) | (4,650 | ) | |||||||||||||||
Investment income (loss)—unrealized | 9,256 | (1,030 | ) | 7,943 | 16,169 | 4,460 | 20,629 | ||||||||||||||||
Interest and other investment income (expense) | 21,617 | 8,532 | 1,642 | 31,791 | (53 | ) | 31,738 | ||||||||||||||||
Interest expense | (6,729 | ) | (4,201 | ) | (788 | ) | (11,718 | ) | (2,101 | ) | (13,819 | ) | |||||||||||
Net investment income (loss) | 24,534 | 17,942 | 9,209 | 51,685 | (17,787 | ) | 33,898 | ||||||||||||||||
Performance related earnings | 47,783 | 73,287 | 16,000 | 137,070 | (17,787 | ) | 119,283 | ||||||||||||||||
Economic net income | $ | 226,453 | $ | 128,325 | $ | 28,081 | $ | 382,859 | $ | (139,628 | ) | $ | 243,231 | ||||||||||
Distributable earnings | $ | 221,357 | $ | 104,162 | $ | 16,867 | $ | 342,386 | $ | (157,550 | ) | $ | 184,836 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment Revenues | |||||||||||||||
Management fees (includes ARCC Part I Fees of $24,036, $76,436 and $33,260, $90,884 for the three and nine months ended September 30, 2017 and 2016, respectively) | $ | 188,628 | $ | 168,796 | $ | 550,969 | $ | 494,076 | |||||||
Other fees | 6,144 | 751 | 16,998 | 2,777 | |||||||||||
Performance fees—realized | 178,989 | 132,837 | 261,924 | 220,790 | |||||||||||
Performance fees—unrealized | (89,423 | ) | 32,368 | 223,467 | 118,334 | ||||||||||
Total segment revenues | $ | 284,338 | $ | 334,752 | $ | 1,053,358 | $ | 835,977 | |||||||
Segment Expenses | |||||||||||||||
Compensation and benefits | $ | 77,205 | $ | 71,378 | $ | 224,357 | $ | 212,951 | |||||||
General, administrative and other expenses | 13,631 | 13,488 | 43,911 | 38,113 | |||||||||||
Performance fee compensation—realized | 140,979 | 93,778 | 199,253 | 146,792 | |||||||||||
Performance fee compensation—unrealized | (82,342 | ) | 29,395 | 161,791 | 106,947 | ||||||||||
Total segment expenses | $ | 149,473 | $ | 208,039 | $ | 629,312 | $ | 504,803 | |||||||
Other Income (Expense) | |||||||||||||||
Investment income—realized | $ | 22,471 | $ | 11,704 | $ | 30,766 | $ | 15,443 | |||||||
Investment income (loss)—unrealized | (10,311 | ) | 18,737 | 25,418 | 16,169 | ||||||||||
Interest and other investment income | 1,305 | 7,071 | 7,732 | 31,791 | |||||||||||
Interest expense | (4,902 | ) | (3,472 | ) | (14,196 | ) | (11,718 | ) | |||||||
Total other income | $ | 8,563 | $ | 34,040 | $ | 49,720 | $ | 51,685 |
Three months ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Segment revenues | |||||||||||||||||||||||||||||
Management fees | $ | 327,463 | $ | 273,778 | |||||||||||||||||||||||||
Other fees | 6,804 | 3,872 | |||||||||||||||||||||||||||
Performance income—realized | 76,981 | 151,770 | |||||||||||||||||||||||||||
Total segment revenues | $ | 411,248 | $ | 429,420 | |||||||||||||||||||||||||
Segment expenses | |||||||||||||||||||||||||||||
Compensation and benefits | $ | 121,731 | $ | 102,934 | |||||||||||||||||||||||||
General, administrative and other expenses | 21,007 | 23,881 | |||||||||||||||||||||||||||
Performance related compensation—realized | 61,096 | 117,993 | |||||||||||||||||||||||||||
Total segment expenses | $ | 203,834 | $ | 244,808 | |||||||||||||||||||||||||
Segment realized net investment income (expense) | |||||||||||||||||||||||||||||
Investment income (loss)—realized | $ | (7,392) | $ | 11,917 | |||||||||||||||||||||||||
Interest and other investment income —realized | 6,174 | 6,183 | |||||||||||||||||||||||||||
Interest expense | (6,605) | (4,329) | |||||||||||||||||||||||||||
Total segment realized net investment income (expense) | $ | (7,823) | $ | 13,771 |
Three months ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Total consolidated revenue | $ | 658,388 | $ | 13,409 | |||||||||||||||||||||||||
Performance (income) loss—unrealized | (224,954) | 387,657 | |||||||||||||||||||||||||||
Management fees of Consolidated Funds eliminated in consolidation | 11,706 | 10,502 | |||||||||||||||||||||||||||
Incentive fees of Consolidated Funds eliminated in consolidation | 1,525 | (45) | |||||||||||||||||||||||||||
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation | 4,145 | 3,317 | |||||||||||||||||||||||||||
Administrative fees(1) | (9,808) | (9,661) | |||||||||||||||||||||||||||
Performance income (loss) reclass(2) | 55 | (1,717) | |||||||||||||||||||||||||||
Principal investment (income) loss, net of eliminations | (25,100) | 26,723 | |||||||||||||||||||||||||||
Net income of non-controlling interests in consolidated subsidiaries | (4,709) | (765) | |||||||||||||||||||||||||||
Total consolidation adjustments and reconciling items | (247,140) | 416,011 | |||||||||||||||||||||||||||
Total segment revenue | $ | 411,248 | $ | 429,420 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Total segment revenue | $ | 284,338 | $ | 334,752 | $ | 1,053,358 | $ | 835,977 | |||||||
Revenue of Consolidated Funds eliminated in consolidation | (6,822 | ) | (5,986 | ) | (18,738 | ) | (13,439 | ) | |||||||
Administrative fees(1) | 7,352 | 6,618 | 26,090 | 19,984 | |||||||||||
Performance fees reclass(2) | (1,187 | ) | 76 | (1,428 | ) | (1,512 | ) | ||||||||
Revenue of non-controlling interests in consolidated subsidiaries(3) | (10 | ) | — | (64 | ) | — | |||||||||
Total consolidated adjustments and reconciling items | (667 | ) | 708 | 5,860 | 5,033 | ||||||||||
Total consolidated revenue | $ | 283,671 | $ | 335,460 | $ | 1,059,218 | $ | 841,010 |
Three months ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Total consolidated expenses | $ | 525,109 | $ | 81,959 | |||||||||||||||||||||||||
Performance related compensation-unrealized | (160,337) | 285,892 | |||||||||||||||||||||||||||
Expenses of Consolidated Funds added in consolidation | (17,436) | (17,899) | |||||||||||||||||||||||||||
Expenses of Consolidated Funds eliminated in consolidation | 13,265 | 10,456 | |||||||||||||||||||||||||||
Administrative fees(1) | (9,808) | (9,661) | |||||||||||||||||||||||||||
OMG expenses | (63,063) | (57,731) | |||||||||||||||||||||||||||
Acquisition and merger-related expense | (8,590) | (3,115) | |||||||||||||||||||||||||||
Equity compensation expense | (55,649) | (32,557) | |||||||||||||||||||||||||||
Deferred placement fees | (297) | (5,415) | |||||||||||||||||||||||||||
Depreciation and amortization expense | (14,100) | (5,542) | |||||||||||||||||||||||||||
Expense of non-controlling interests in consolidated subsidiaries | (5,260) | (1,579) | |||||||||||||||||||||||||||
Total consolidation adjustments and reconciling items | (321,275) | 162,849 | |||||||||||||||||||||||||||
Total segment expenses | $ | 203,834 | $ | 244,808 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Total segment expenses | $ | 149,473 | $ | 208,039 | $ | 629,312 | $ | 504,803 | |||||||
Expenses of Consolidated Funds added in consolidation | 25,862 | 16,068 | 45,196 | 27,334 | |||||||||||
Expenses of Consolidated Funds eliminated in consolidation | (6,823 | ) | (5,980 | ) | (17,724 | ) | (16,320 | ) | |||||||
Administrative fees(1) | 7,352 | 6,618 | 26,090 | 19,984 | |||||||||||
OMG expenses | 45,957 | 39,346 | 141,610 | 121,841 | |||||||||||
Acquisition and merger-related expenses | 2,818 | 79 | 278,878 | 432 | |||||||||||
Equity compensation expense | 18,091 | 8,476 | 52,097 | 27,185 | |||||||||||
Placement fees and underwriting costs | 4,495 | 2,202 | 14,317 | 4,886 | |||||||||||
Amortization of intangibles | 3,651 | 6,378 | 14,200 | 20,762 | |||||||||||
Depreciation expense | 3,468 | 2,148 | 9,458 | 5,940 | |||||||||||
Expenses of non-controlling interests in consolidated subsidiaries(2) | (217 | ) | — | 357 | — | ||||||||||
Total consolidation adjustments and reconciling items | 104,654 | 75,335 | 564,479 | 212,044 | |||||||||||
Total consolidated expenses | $ | 254,127 | $ | 283,374 | $ | 1,193,791 | $ | 716,847 |
(1)Represents administrative fees that are presented in administrative, transaction and other fees in the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Total other income | $ | 8,563 | $ | 34,040 | $ | 49,720 | $ | 51,685 | |||||||
Other income from Consolidated Funds added in consolidation, net | 55,227 | 30,181 | 90,522 | 14,545 | |||||||||||
Other income (expense) from Consolidated Funds eliminated in consolidation, net | (9,973 | ) | (5,549 | ) | (16,847 | ) | 6,125 | ||||||||
Other income of non-controlling interests in consolidated subsidiaries | 9 | — | 14 | — | |||||||||||
OMG other expense | 3,960 | (4,675 | ) | 3,184 | (17,787 | ) | |||||||||
Performance fee reclass(1) | 1,187 | (76 | ) | 1,428 | 1,512 | ||||||||||
Changes in fair value of contingent consideration | (60 | ) | 17,690 | 20,156 | 17,486 | ||||||||||
Other non-cash expense | — | 1,728 | — | 1,728 | |||||||||||
Offering costs | (33 | ) | — | (688 | ) | — | |||||||||
Total consolidation adjustments and reconciling items | 50,317 | 39,299 | 97,769 | 23,609 | |||||||||||
Total consolidated other income | $ | 58,880 | $ | 73,339 | $ | 147,489 | $ | 75,294 |
Three months ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Total consolidated other income (expense) | $ | 56,785 | $ | (227,863) | |||||||||||||||||||||||||
Investment (income) loss—unrealized | (22,168) | 105,594 | |||||||||||||||||||||||||||
Interest and other investment (income) loss—unrealized | 3,950 | (4,961) | |||||||||||||||||||||||||||
Other (income) loss from Consolidated Funds added in consolidation, net | (67,316) | 198,245 | |||||||||||||||||||||||||||
Other expense from Consolidated Funds eliminated in consolidation, net | (4,112) | (3,819) | |||||||||||||||||||||||||||
OMG other expense | 333 | 1,141 | |||||||||||||||||||||||||||
Performance (income) loss reclass(1) | (55) | 1,717 | |||||||||||||||||||||||||||
Principal investment income (loss) | 25,095 | (75,988) | |||||||||||||||||||||||||||
Other (income) expense, net | (473) | 22 | |||||||||||||||||||||||||||
Other loss of non-controlling interests in consolidated subsidiaries | 138 | 19,683 | |||||||||||||||||||||||||||
Total consolidation adjustments and reconciling items | (64,608) | 241,634 | |||||||||||||||||||||||||||
Total segment realized net investment income (expense) | $ | (7,823) | $ | 13,771 |
Three months ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Income (loss) before taxes | $ | 190,064 | $ | (296,413) | |||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Depreciation and amortization expense | 14,100 | 5,542 | |||||||||||||||||||||||||||
Equity compensation expense | 55,649 | 32,557 | |||||||||||||||||||||||||||
Acquisition and merger-related expense | 8,590 | 3,137 | |||||||||||||||||||||||||||
Deferred placement fees | 297 | 5,415 | |||||||||||||||||||||||||||
OMG expense, net | 63,396 | 58,872 | |||||||||||||||||||||||||||
Other income, net | (473) | 0 | |||||||||||||||||||||||||||
Net expense of non-controlling interests in consolidated subsidiaries | 689 | 20,497 | |||||||||||||||||||||||||||
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (49,886) | 166,378 | |||||||||||||||||||||||||||
Total performance (income) loss—unrealized | (224,954) | 387,657 | |||||||||||||||||||||||||||
Total performance related compensation—unrealized | 160,337 | (285,892) | |||||||||||||||||||||||||||
Total investment (income) loss—unrealized | (18,218) | 100,633 | |||||||||||||||||||||||||||
Realized income | 199,591 | 198,383 | |||||||||||||||||||||||||||
Total performance income—realized | (76,981) | (151,770) | |||||||||||||||||||||||||||
Total performance related compensation—realized | 61,096 | 117,993 | |||||||||||||||||||||||||||
Total investment income—realized | 7,823 | (13,771) | |||||||||||||||||||||||||||
Fee related earnings | $ | 191,529 | $ | 150,835 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Economic net income | |||||||||||||||
Income before taxes | $ | 88,424 | $ | 125,425 | $ | 12,916 | $ | 199,457 | |||||||
Adjustments: | |||||||||||||||
Amortization of intangibles | 3,651 | 6,378 | 14,200 | 20,762 | |||||||||||
Depreciation expense | 3,468 | 2,148 | 9,458 | 5,940 | |||||||||||
Equity compensation expenses | 18,091 | 8,476 | 52,097 | 27,185 | |||||||||||
Acquisition and merger-related expenses | 2,878 | (17,611 | ) | 258,722 | (17,054 | ) | |||||||||
Placement fees and underwriting costs | 4,495 | 2,202 | 14,317 | 4,886 | |||||||||||
OMG expenses, net | 41,997 | 44,021 | 138,426 | 139,628 | |||||||||||
Offering costs | 33 | — | 688 | — | |||||||||||
Other non-cash expense | — | (1,728 | ) | — | (1,728 | ) | |||||||||
(Income) loss before taxes of non-controlling interests in consolidated subsidiaries | (216 | ) | — | 407 | — | ||||||||||
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (19,393 | ) | (8,558 | ) | (27,465 | ) | 3,783 | ||||||||
Total consolidation adjustments and reconciling items | 55,004 | 35,328 | 460,850 | 183,402 | |||||||||||
Economic net income | 143,428 | 160,753 | 473,766 | 382,859 | |||||||||||
Total performance fees income - realized | (178,989 | ) | (132,837 | ) | (261,924 | ) | (220,790 | ) | |||||||
Total performance fees income - unrealized | 89,423 | (32,368 | ) | (223,467 | ) | (118,334 | ) | ||||||||
Total performance fee compensation - realized | 140,979 | 93,778 | 199,253 | 146,792 | |||||||||||
Total performance fee compensation - unrealized | (82,342 | ) | 29,395 | 161,791 | 106,947 | ||||||||||
Total investment income | (8,563 | ) | (34,040 | ) | (49,720 | ) | (51,685 | ) | |||||||
Fee related earnings | 103,936 | 84,681 | 299,699 | 245,789 | |||||||||||
Performance fees—realized | 178,989 | 132,837 | 261,924 | 220,790 | |||||||||||
Performance fee compensation—realized | (140,979 | ) | (93,778 | ) | (199,253 | ) | (146,792 | ) | |||||||
Investment and other income realized, net | 21,160 | 14,777 | 27,067 | 33,605 | |||||||||||
Additional adjustments: | |||||||||||||||
Dividend equivalent(1) | (3,540 | ) | (1,649 | ) | (7,741 | ) | (3,039 | ) | |||||||
One-time acquisition costs(1) | (12 | ) | (12 | ) | (35 | ) | (294 | ) | |||||||
Income tax expense(1) | (343 | ) | (292 | ) | (950 | ) | (773 | ) | |||||||
Non-cash items | 397 | 36 | 533 | 883 | |||||||||||
Placement fees and underwriting costs(1) | (4,495 | ) | (2,209 | ) | (14,317 | ) | (4,894 | ) | |||||||
Depreciation and amortization(1) | (1,448 | ) | (960 | ) | (4,233 | ) | (2,889 | ) | |||||||
Distributable earnings | $ | 153,665 | $ | 133,431 | $ | 362,694 | $ | 342,386 | |||||||
Performance related earnings | |||||||||||||||
Economic net income | $ | 143,428 | $ | 160,753 | $ | 473,766 | $ | 382,859 | |||||||
Less: fee related earnings | (103,936 | ) | (84,681 | ) | (299,699 | ) | (245,789 | ) | |||||||
Performance related earnings | $ | 39,492 | $ | 76,072 | $ | 174,067 | $ | 137,070 |
As of March 31, | As of December 31, | |||||||||||||||||
As of September 30, | As of December 31, | |||||||||||||||||
2017 | 2016 | 2021 | 2020 | |||||||||||||||
Maximum exposure to loss attributable to the Company's investment in non-consolidated VIEs | $ | 364,860 | $ | 268,950 | $ | 199,819 | $ | 224,203 | ||||||||||
Maximum exposure to loss attributable to the Company's investment in consolidated VIEs | $ | 162,295 | $ | 153,746 | 387,934 | 391,963 | ||||||||||||
Assets of consolidated VIEs | $ | 5,760,754 | $ | 3,822,010 | Assets of consolidated VIEs | 11,724,262 | 11,580,003 | |||||||||||
Liabilities of consolidated VIEs | $ | 5,152,179 | $ | 3,360,329 | Liabilities of consolidated VIEs | 10,851,579 | 10,716,438 |
Three months ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests related to consolidated VIEs | $ | 27,816 | $ | (166,406) |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) attributable to non-controlling interests related to consolidated VIEs | $ | 18,195 | $ | 7,861 | $ | 25,403 | $ | (3,064 | ) |
As of March 31, 2021 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 609,872 | $ | — | $ | — | $ | 609,872 | |||||||||||||||
Investments (includes $1,369,684 of accrued carried interest) | 2,323,728 | — | (391,750) | 1,931,978 | |||||||||||||||||||
Due from affiliates | 358,106 | — | (22,656) | 335,450 | |||||||||||||||||||
Other assets | 781,464 | — | (1,523) | 779,941 | |||||||||||||||||||
Right-of-use operating lease assets | 157,908 | — | — | 157,908 | |||||||||||||||||||
Assets of Consolidated Funds | |||||||||||||||||||||||
Cash and cash equivalents | — | 557,271 | — | 557,271 | |||||||||||||||||||
U.S. Treasury securities, at fair value | — | 1,000,040 | — | 1,000,040 | |||||||||||||||||||
Investments, at fair value | — | 10,944,061 | 4,112 | 10,948,173 | |||||||||||||||||||
Due from affiliates | — | 25,990 | (9,750) | 16,240 | |||||||||||||||||||
Receivable for securities sold | — | 166,960 | — | 166,960 | |||||||||||||||||||
Other assets | — | 32,096 | — | 32,096 | |||||||||||||||||||
Total assets | $ | 4,231,078 | $ | 12,726,418 | $ | (421,567) | $ | 16,535,929 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 129,327 | $ | — | $ | (9,749) | $ | 119,578 | |||||||||||||||
Accrued compensation | 89,791 | — | — | 89,791 | |||||||||||||||||||
Due to affiliates | 77,817 | — | — | 77,817 | |||||||||||||||||||
Performance related compensation payable | 968,582 | — | — | 968,582 | |||||||||||||||||||
Debt obligations | 811,279 | — | — | 811,279 | |||||||||||||||||||
Operating lease liabilities | 186,594 | — | — | 186,594 | |||||||||||||||||||
Liabilities of Consolidated Funds | |||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | — | 112,014 | (13,541) | 98,473 | |||||||||||||||||||
Due to affiliates | — | 20,690 | (20,068) | 622 | |||||||||||||||||||
Payable for securities purchased | — | 781,845 | — | 781,845 | |||||||||||||||||||
CLO loan obligations, at fair value | — | 9,892,853 | (53,214) | 9,839,639 | |||||||||||||||||||
Fund borrowings | — | 110,409 | — | 110,409 | |||||||||||||||||||
Total liabilities | 2,263,390 | 10,917,811 | (96,572) | 13,084,629 | |||||||||||||||||||
Commitments and contingencies | 0 | 0 | 0 | 0 | |||||||||||||||||||
Redeemable interest in Consolidated Funds | — | 930,924 | — | 930,924 | |||||||||||||||||||
Redeemable interest in Ares Operating Group entities | 99,808 | — | — | 99,808 | |||||||||||||||||||
Non-controlling interest in Consolidated Funds | — | 877,683 | (324,995) | 552,688 | |||||||||||||||||||
Non-controlling interest in Ares Operating Group entities | 706,381 | — | — | 706,381 | |||||||||||||||||||
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 | — | — | 298,761 | |||||||||||||||||||
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (149,840,978 shares issued and outstanding) | 1,498 | — | — | 1,498 | |||||||||||||||||||
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding) | 0 | — | — | 0 | |||||||||||||||||||
Class C common stock, $0.01 par value, 499,999,000 shares authorized (112,163,894 shares issued and outstanding) | 1,122 | — | — | 1,122 | |||||||||||||||||||
Additional paid-in-capital | 1,033,735 | — | — | 1,033,735 | |||||||||||||||||||
Retained earnings | (173,555) | — | — | (173,555) | |||||||||||||||||||
Accumulated other comprehensive loss, net of tax | (62) | — | — | (62) | |||||||||||||||||||
Total stockholders' equity | 1,161,499 | — | — | 1,161,499 | |||||||||||||||||||
Total equity | 1,867,880 | 877,683 | (324,995) | 2,420,568 | |||||||||||||||||||
Total liabilities, redeemable interest, non-controlling interests and equity | $ | 4,231,078 | $ | 12,726,418 | $ | (421,567) | $ | 16,535,929 |
As of September 30, 2017 | |||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 186,437 | $ | — | $ | — | $ | 186,437 | |||||||
Investments (includes fair value investments of $581,614) | 746,990 | — | (162,295 | ) | 584,695 | ||||||||||
Performance fees receivable | 1,001,581 | — | (4,003 | ) | 997,578 | ||||||||||
Due from affiliates | 166,214 | — | (4,782 | ) | 161,432 | ||||||||||
Deferred tax asset, net | 36,661 | — | — | 36,661 | |||||||||||
Other assets | 103,885 | — | — | 103,885 | |||||||||||
Intangible assets, net | 44,115 | — | — | 44,115 | |||||||||||
Goodwill | 143,880 | — | — | 143,880 | |||||||||||
Assets of Consolidated Funds | |||||||||||||||
Cash and cash equivalents | — | 799,609 | — | 799,609 | |||||||||||
Investments, at fair value | — | 4,915,029 | — | 4,915,029 | |||||||||||
Due from affiliates | — | 8,047 | — | 8,047 | |||||||||||
Dividends and interest receivable | — | 10,061 | — | 10,061 | |||||||||||
Receivable for securities sold | — | 25,926 | — | 25,926 | |||||||||||
Other assets | — | 2,082 | — | 2,082 | |||||||||||
Total assets | $ | 2,429,763 | $ | 5,760,754 | $ | (171,080 | ) | $ | 8,019,437 | ||||||
Liabilities | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 94,351 | $ | — | $ | — | $ | 94,351 | |||||||
Accrued compensation | 133,799 | — | — | 133,799 | |||||||||||
Due to affiliates | 17,207 | — | — | 17,207 | |||||||||||
Performance fee compensation payable | 780,201 | — | — | 780,201 | |||||||||||
Debt obligations | 486,007 | — | — | 486,007 | |||||||||||
Liabilities of Consolidated Funds | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | — | 50,992 | — | 50,992 | |||||||||||
Due to affiliates | — | 8,786 | (8,786 | ) | — | ||||||||||
Payable for securities purchased | — | 481,055 | — | 481,055 | |||||||||||
CLO loan obligations, at fair value | — | 4,490,085 | (13,442 | ) | 4,476,643 | ||||||||||
Fund borrowings | — | 121,261 | — | 121,261 | |||||||||||
Total liabilities | 1,511,565 | 5,152,179 | (22,228 | ) | 6,641,516 | ||||||||||
Commitments and contingencies | |||||||||||||||
Preferred equity (12,400,000 units issued and outstanding) | 298,761 | — | — | 298,761 | |||||||||||
Non-controlling interest in Consolidated Funds | — | 608,575 | (148,852 | ) | 459,723 | ||||||||||
Non-controlling interest in Ares Operating Group entities | 348,513 | — | — | 348,513 | |||||||||||
Controlling interest in Ares Management, L.P.: | |||||||||||||||
Partners' capital (82,211,302 units issued and outstanding) | 275,410 | — | — | 275,410 | |||||||||||
Accumulated other comprehensive loss, net of tax | (4,486 | ) | — | — | (4,486 | ) | |||||||||
Total controlling interest in Ares Management, L.P. | 270,924 | — | — | 270,924 | |||||||||||
Total equity | 918,198 | 608,575 | (148,852 | ) | 1,377,921 | ||||||||||
Total liabilities and equity | $ | 2,429,763 | $ | 5,760,754 | $ | (171,080 | ) | $ | 8,019,437 |
As of December 31, 2020 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 539,812 | $ | — | $ | — | $ | 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 | — | 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 | — | 121,225 | |||||||||||||||||||
Other assets | — | 35,502 | — | 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 | — | — | 103,010 | |||||||||||||||||||
Due to affiliates | 100,186 | — | — | 100,186 | |||||||||||||||||||
Performance related compensation payable | 813,378 | — | — | 813,378 | |||||||||||||||||||
Debt obligations | 642,998 | — | — | 642,998 | |||||||||||||||||||
Operating lease liabilities | 180,236 | — | — | 180,236 | |||||||||||||||||||
Liabilities of Consolidated Funds | |||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | — | 46,824 | — | 46,824 | |||||||||||||||||||
Due to affiliates | — | 16,770 | (16,770) | 0 | |||||||||||||||||||
Payable for securities purchased | — | 514,946 | — | 514,946 | |||||||||||||||||||
CLO loan obligations | — | 10,015,989 | (57,913) | 9,958,076 | |||||||||||||||||||
Fund borrowings | — | 121,909 | — | 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 | — | — | 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 | — | — | 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 share 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 income, net of tax | 483 | — | — | 483 | |||||||||||||||||||
Total stockholders' equity | 1,193,685 | — | — | 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, 2016 | |||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 342,861 | $ | — | $ | — | $ | 342,861 | |||||||
Investments (includes fair value investments of $448,336) | 622,215 | — | (153,744 | ) | 468,471 | ||||||||||
Performance fees receivable | 767,429 | — | (8,330 | ) | 759,099 | ||||||||||
Due from affiliates | 169,252 | — | (6,316 | ) | 162,936 | ||||||||||
Deferred tax asset, net | 6,731 | — | — | 6,731 | |||||||||||
Other assets | 65,565 | — | — | 65,565 | |||||||||||
Intangible assets, net | 58,315 | — | — | 58,315 | |||||||||||
Goodwill | 143,724 | — | — | 143,724 | |||||||||||
Assets of Consolidated Funds | |||||||||||||||
Cash and cash equivalents | — | 455,280 | — | 455,280 | |||||||||||
Investments, at fair value | — | 3,330,203 | — | 3,330,203 | |||||||||||
Due from affiliates | — | 3,592 | — | 3,592 | |||||||||||
Dividends and interest receivable | — | 8,479 | — | 8,479 | |||||||||||
Receivable for securities sold | — | 21,955 | — | 21,955 | |||||||||||
Other assets | — | 2,501 | — | 2,501 | |||||||||||
Total assets | $ | 2,176,092 | $ | 3,822,010 | $ | (168,390 | ) | $ | 5,829,712 | ||||||
Liabilities | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 83,336 | $ | — | $ | — | $ | 83,336 | |||||||
Accrued compensation | 131,736 | — | — | 131,736 | |||||||||||
Due to affiliates | 17,959 | — | (395 | ) | 17,564 | ||||||||||
Performance fee compensation payable | 598,050 | — | — | 598,050 | |||||||||||
Debt obligations | 305,784 | — | — | 305,784 | |||||||||||
Liabilities of Consolidated Funds | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | — | 21,056 | — | 21,056 | |||||||||||
Due to affiliates | — | 10,599 | (10,599 | ) | — | ||||||||||
Payable for securities purchased | — | 208,742 | — | 208,742 | |||||||||||
CLO loan obligations, at fair value | — | 3,064,862 | (33,750 | ) | 3,031,112 | ||||||||||
Fund borrowings | — | 55,070 | — | 55,070 | |||||||||||
Total liabilities | 1,136,865 | 3,360,329 | (44,744 | ) | 4,452,450 | ||||||||||
Commitments and contingencies | |||||||||||||||
Preferred equity (12,400,000 units issued and outstanding) | 298,761 | — | — | 298,761 | |||||||||||
Non-controlling interest in Consolidated Funds | — | 461,681 | (123,646 | ) | 338,035 | ||||||||||
Non-controlling interest in Ares Operating Group entities | 447,615 | — | — | 447,615 | |||||||||||
Controlling interest in Ares Management, L.P.: | |||||||||||||||
Partners' capital (80,814,732 units issued and outstanding) | 301,790 | — | — | 301,790 | |||||||||||
Accumulated other comprehensive loss, net of tax | (8,939 | ) | — | — | (8,939 | ) | |||||||||
Total controlling interest in Ares Management, L.P. | 292,851 | — | — | 292,851 | |||||||||||
Total equity | 1,039,227 | 461,681 | (123,646 | ) | 1,377,262 | ||||||||||
Total liabilities and equity | $ | 2,176,092 | $ | 3,822,010 | $ | (168,390 | ) | $ | 5,829,712 |
Three months ended March 31, 2021 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Management fees | $ | 331,979 | $ | — | $ | (11,706) | $ | 320,273 | |||||||||||||||
Carried interest allocation | 297,535 | — | — | 297,535 | |||||||||||||||||||
Incentive fees | 4,345 | — | (1,525) | 2,820 | |||||||||||||||||||
Principal investment income | 25,095 | — | 5 | 25,100 | |||||||||||||||||||
Administrative, transaction and other fees | 16,805 | — | (4,145) | 12,660 | |||||||||||||||||||
Total revenues | 675,759 | — | (17,371) | 658,388 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Compensation and benefits | 231,850 | — | — | 231,850 | |||||||||||||||||||
Performance related compensation | 221,432 | — | — | 221,432 | |||||||||||||||||||
General, administrative and other expense | 67,656 | — | — | 67,656 | |||||||||||||||||||
Expenses of the Consolidated Funds | — | 17,436 | (13,265) | 4,171 | |||||||||||||||||||
Total expenses | 520,938 | 17,436 | (13,265) | 525,109 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (6,118) | — | 11,551 | 5,433 | |||||||||||||||||||
Interest and dividend income | 1,863 | — | (903) | 960 | |||||||||||||||||||
Interest expense | (6,695) | — | — | (6,695) | |||||||||||||||||||
Other expense, net | (3,693) | — | (456) | (4,149) | |||||||||||||||||||
Net realized and unrealized gains on investments of the Consolidated Funds | — | 26,468 | (10,046) | 16,422 | |||||||||||||||||||
Interest and other income of the Consolidated Funds | — | 115,383 | 456 | 115,839 | |||||||||||||||||||
Interest expense of the Consolidated Funds | — | (74,535) | 3,510 | (71,025) | |||||||||||||||||||
Total other income (expense) | (14,643) | 67,316 | 4,112 | 56,785 | |||||||||||||||||||
Income before taxes | 140,178 | 49,880 | 6 | 190,064 | |||||||||||||||||||
Income tax expense | 25,726 | 28 | — | 25,754 | |||||||||||||||||||
Net income | 114,452 | 49,852 | 6 | 164,310 | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | — | 49,852 | 6 | 49,858 | |||||||||||||||||||
Net income attributable to Ares Operating Group entities | 114,452 | — | — | 114,452 | |||||||||||||||||||
Less: Net income attributable to redeemable interest in Ares Operating Group entities | 32 | — | — | 32 | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 56,042 | — | — | 56,042 | |||||||||||||||||||
Net income attributable to Ares Management Corporation | 58,378 | — | — | 58,378 | |||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 5,425 | — | — | 5,425 | |||||||||||||||||||
Net income attributable to Ares Management Corporation Class A common stockholders | $ | 52,953 | $ | — | $ | — | $ | 52,953 |
For the Three Months Ended September 30, 2017 | |||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||
Revenues | |||||||||||||||
Management fees (includes ARCC Part I Fees of $24,036) | $ | 188,628 | $ | — | $ | (5,451 | ) | $ | 183,177 | ||||||
Performance fees | 88,379 | — | (1,371 | ) | 87,008 | ||||||||||
Administrative and other fees | 13,486 | — | — | 13,486 | |||||||||||
Total revenues | 290,493 | — | (6,822 | ) | 283,671 | ||||||||||
Expenses | |||||||||||||||
Compensation and benefits | 129,347 | — | — | 129,347 | |||||||||||
Performance fee compensation | 58,637 | — | — | 58,637 | |||||||||||
General, administrative and other expense | 47,104 | — | — | 47,104 | |||||||||||
Expenses of the Consolidated Funds | — | 25,862 | (6,823 | ) | 19,039 | ||||||||||
Total expenses | 235,088 | 25,862 | (6,823 | ) | 254,127 | ||||||||||
Other income (expense) | |||||||||||||||
Investment income and net interest expense (includes interest expense of $5,343) | (1,606 | ) | — | (225 | ) | (1,831 | ) | ||||||||
Other expense, net | (2,492 | ) | — | — | (2,492 | ) | |||||||||
Net realized and unrealized gain on investments | 17,724 | — | (10,515 | ) | 7,209 | ||||||||||
Investment income and net interest income of the Consolidated Funds (includes interest expense of $28,127) | — | 7,169 | 12,885 | 20,054 | |||||||||||
Net realized and unrealized gain on investments of the Consolidated Funds | — | 48,058 | (12,118 | ) | 35,940 | ||||||||||
Total other income | 13,626 | 55,227 | (9,973 | ) | 58,880 | ||||||||||
Income before taxes | 69,031 | 29,365 | (9,972 | ) | 88,424 | ||||||||||
Income tax expense | 3,354 | 1,198 | — | 4,552 | |||||||||||
Net income | 65,677 | 28,167 | (9,972 | ) | 83,872 | ||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | — | 28,167 | (9,972 | ) | 18,195 | ||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 37,839 | — | — | 37,839 | |||||||||||
Net income attributable to Ares Management, L.P. | 27,838 | — | — | 27,838 | |||||||||||
Less: Preferred equity distributions paid | 5,425 | — | — | 5,425 | |||||||||||
Net income attributable to Ares Management, L.P. common unitholders | $ | 22,413 | $ | — | $ | — | $ | 22,413 |
Three months ended March 31, 2020 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Management fees | $ | 274,351 | $ | — | $ | (10,502) | $ | 263,849 | |||||||||||||||
Carried interest allocation | (230,876) | — | — | (230,876) | |||||||||||||||||||
Incentive fees | (3,294) | — | 45 | (3,249) | |||||||||||||||||||
Principal investment loss | (75,988) | — | 49,265 | (26,723) | |||||||||||||||||||
Administrative, transaction and other fees | 13,725 | — | (3,317) | 10,408 | |||||||||||||||||||
Total revenues | (22,082) | — | 35,491 | 13,409 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Compensation and benefits | 180,084 | — | — | 180,084 | |||||||||||||||||||
Performance related compensation | (167,899) | — | — | (167,899) | |||||||||||||||||||
General, administrative and other expense | 62,331 | — | — | 62,331 | |||||||||||||||||||
Expenses of the Consolidated Funds | — | 17,899 | (10,456) | 7,443 | |||||||||||||||||||
Total expenses | 74,516 | 17,899 | (10,456) | 81,959 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Net realized and unrealized losses on investments | (35,695) | — | 27,661 | (8,034) | |||||||||||||||||||
Interest and dividend income | 2,602 | — | (812) | 1,790 | |||||||||||||||||||
Interest expense | (5,306) | — | — | (5,306) | |||||||||||||||||||
Other income, net | 4,962 | — | 502 | 5,464 | |||||||||||||||||||
Net realized and unrealized losses on investments of the Consolidated Funds | — | (230,173) | (24,588) | (254,761) | |||||||||||||||||||
Interest and other income of the Consolidated Funds | — | 113,225 | — | 113,225 | |||||||||||||||||||
Interest expense of the Consolidated Funds | — | (81,297) | 1,056 | (80,241) | |||||||||||||||||||
Total other expense | (33,437) | (198,245) | 3,819 | (227,863) | |||||||||||||||||||
Loss before taxes | (130,035) | (216,144) | 49,766 | (296,413) | |||||||||||||||||||
Income tax expense (benefit) | (20,644) | 28 | — | (20,616) | |||||||||||||||||||
Net loss | (109,391) | (216,172) | 49,766 | (275,797) | |||||||||||||||||||
Less: Net loss attributable to non-controlling interests in Consolidated Funds | — | (216,172) | 49,766 | (166,406) | |||||||||||||||||||
Net loss attributable to Ares Operating Group entities | (109,391) | — | — | (109,391) | |||||||||||||||||||
Less: Net loss attributable to non-controlling interests in in Ares Operating Group entities | (78,355) | — | — | (78,355) | |||||||||||||||||||
Net loss attributable to Ares Management Corporation | (31,036) | — | — | (31,036) | |||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 5,425 | — | — | 5,425 | |||||||||||||||||||
Net loss attributable to Ares Management Corporation Class A common stockholders | $ | (36,461) | $ | — | $ | — | $ | (36,461) |
For the Three Months Ended September 30, 2016 | |||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||
Revenues | |||||||||||||||
Management fees (includes ARCC Part I Fees of $33,260) | $ | 168,796 | $ | — | $ | (5,187 | ) | $ | 163,609 | ||||||
Performance fees | 165,281 | — | (799 | ) | 164,482 | ||||||||||
Administrative and other fees | 7,369 | — | — | 7,369 | |||||||||||
Total revenues | 341,446 | — | (5,986 | ) | 335,460 | ||||||||||
Expenses | |||||||||||||||
Compensation and benefits | 111,916 | — | — | 111,916 | |||||||||||
Performance fee compensation | 123,173 | — | — | 123,173 | |||||||||||
General, administrative and other expense | 38,197 | — | — | 38,197 | |||||||||||
Expenses of the Consolidated Funds | — | 16,068 | (5,980 | ) | 10,088 | ||||||||||
Total expenses | 273,286 | 16,068 | (5,980 | ) | 283,374 | ||||||||||
Other income (expense) | |||||||||||||||
Investment income and net interest expense (includes interest expense of $4,136) | (675 | ) | — | (1,006 | ) | (1,681 | ) | ||||||||
Other income, net | 23,042 | — | — | 23,042 | |||||||||||
Net realized and unrealized gain on investments | 26,340 | — | (6,982 | ) | 19,358 | ||||||||||
Investment income and net interest income of the Consolidated Funds (includes interest expense of $26,413) | — | 6,525 | 2,212 | 8,737 | |||||||||||
Net realized and unrealized gain on investments of the Consolidated Funds | — | 23,656 | 227 | 23,883 | |||||||||||
Total other income | 48,707 | 30,181 | (5,549 | ) | 73,339 | ||||||||||
Income before taxes | 116,867 | 14,113 | (5,555 | ) | 125,425 | ||||||||||
Income tax expense | 6,944 | 697 | — | 7,641 | |||||||||||
Net income | 109,923 | 13,416 | (5,555 | ) | 117,784 | ||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | — | 13,416 | (5,555 | ) | 7,861 | ||||||||||
Less: Net income attributable to redeemable interests in Ares Operating Group entities | 107 | — | — | 107 | |||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 66,511 | — | — | 66,511 | |||||||||||
Net income attributable to Ares Management, L.P. | 43,305 | — | — | 43,305 | |||||||||||
Less: Preferred equity distributions paid | 6,751 | — | — | 6,751 | |||||||||||
Net income attributable to Ares Management, L.P. common unitholders | $ | 36,554 | $ | — | $ | — | $ | 36,554 |
Three months ended March 31, 2021 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 114,452 | $ | 49,852 | $ | 6 | $ | 164,310 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | 34,292 | — | 9,992 | 44,284 | |||||||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities allocable to redeemable and non-controlling interests in Consolidated Funds | — | (1,208,767) | 587 | (1,208,180) | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities | (11,336) | — | 4,292 | (7,044) | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds | — | 314,126 | (48,614) | 265,512 | |||||||||||||||||||
Net cash provided by (used in) operating activities | 137,408 | (844,789) | (33,737) | (741,118) | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | (3,284) | — | — | (3,284) | |||||||||||||||||||
Net cash used in investing activities | (3,284) | — | — | (3,284) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from Credit Facility | 168,000 | — | — | 168,000 | |||||||||||||||||||
Dividends and distributions | (141,768) | — | — | (141,768) | |||||||||||||||||||
Series A Preferred Stock dividends | (5,425) | — | — | (5,425) | |||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (84,590) | — | — | (84,590) | |||||||||||||||||||
Other financing activities | 341 | — | — | 341 | |||||||||||||||||||
Allocable to redeemable and non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||
Contributions from redeemable and non-controlling interests in Consolidated Funds | — | 955,083 | (13,148) | 941,935 | |||||||||||||||||||
Distributions to non-controlling interests in Consolidated Funds | — | (50,822) | 11,993 | (38,829) | |||||||||||||||||||
Borrowings under loan obligations by Consolidated Funds | — | 7,000 | — | 7,000 | |||||||||||||||||||
Repayments under loan obligations by Consolidated Funds | — | (29,453) | — | (29,453) | |||||||||||||||||||
Net cash provided by (used in) financing activities | (63,442) | 881,808 | (1,155) | 817,211 | |||||||||||||||||||
Effect of exchange rate changes | (622) | (2,127) | 0 | (2,749) | |||||||||||||||||||
Net change in cash and cash equivalents | 70,060 | 34,892 | (34,892) | 70,060 | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 539,812 | 522,377 | (522,377) | 539,812 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 609,872 | $ | 557,269 | $ | (557,269) | $ | 609,872 | |||||||||||||||
For the Nine Months Ended September 30, 2017 | |||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||
Revenues | |||||||||||||||
Management fees (includes ARCC Part I Fees of $76,436) | $ | 550,969 | $ | — | $ | (14,979 | ) | $ | 535,990 | ||||||
Performance fees | 483,963 | — | (3,759 | ) | 480,204 | ||||||||||
Administrative and other fees | 43,024 | — | — | 43,024 | |||||||||||
Total revenues | 1,077,956 | — | (18,738 | ) | 1,059,218 | ||||||||||
Expenses | |||||||||||||||
Compensation and benefits | 384,905 | — | — | 384,905 | |||||||||||
Performance fee compensation | 361,044 | — | — | 361,044 | |||||||||||
General, administrative and other expense | 145,193 | — | — | 145,193 | |||||||||||
Transaction support expense | 275,177 | — | — | 275,177 | |||||||||||
Expenses of the Consolidated Funds | — | 45,196 | (17,724 | ) | 27,472 | ||||||||||
Total expenses | 1,166,319 | 45,196 | (17,724 | ) | 1,193,791 | ||||||||||
Other income (expense) | |||||||||||||||
Investment income and net interest expense (includes interest expense of $15,576) | (4,064 | ) | — | (2,154 | ) | (6,218 | ) | ||||||||
Other income, net | 16,826 | — | — | 16,826 | |||||||||||
Net realized and unrealized gain on investments | 61,052 | — | (21,109 | ) | 39,943 | ||||||||||
Investment income and net interest income of the Consolidated Funds (includes interest expense of $86,324) | — | 11,072 | 30,603 | 41,675 | |||||||||||
Net realized and unrealized gain on investments of the Consolidated Funds | — | 79,450 | (24,187 | ) | 55,263 | ||||||||||
Total other income | 73,814 | 90,522 | (16,847 | ) | 147,489 | ||||||||||
Income (loss) before taxes | (14,549 | ) | 45,326 | (17,861 | ) | 12,916 | |||||||||
Income tax expense (benefit) | (30,521 | ) | 2,062 | — | (28,459 | ) | |||||||||
Net income | 15,972 | 43,264 | (17,861 | ) | 41,375 | ||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | — | 43,264 | (17,861 | ) | 25,403 | ||||||||||
Less: Net loss attributable to non-controlling interests in Ares Operating Group entities | (20,610 | ) | — | — | (20,610 | ) | |||||||||
Net income attributable to Ares Management, L.P. | 36,582 | — | — | 36,582 | |||||||||||
Less: Preferred equity distributions paid | 16,275 | — | — | 16,275 | |||||||||||
Net income attributable to Ares Management, L.P. common unitholders | $ | 20,307 | $ | — | $ | — | $ | 20,307 |
Three months ended March 31, 2020 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net loss | $ | (109,391) | $ | (216,172) | $ | 49,766 | $ | (275,797) | |||||||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | 190,761 | — | (65,691) | 125,070 | |||||||||||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities allocable to non-controlling interests in Consolidated Funds | — | (478,695) | 25,680 | (453,015) | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities | 45,995 | — | 6,000 | 51,995 | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds | — | 99,272 | 89,238 | 188,510 | |||||||||||||||||||
Net cash provided by (used in) operating activities | 127,365 | (595,595) | 104,993 | (363,237) | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | (3,062) | — | — | (3,062) | |||||||||||||||||||
Cash paid for asset acquisition | (35,844) | — | — | (35,844) | |||||||||||||||||||
Net cash used in investing activities | (38,906) | — | — | (38,906) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of Class A common stock | 383,334 | — | — | 383,334 | |||||||||||||||||||
Proceeds from Credit Facility | 790,000 | — | — | 790,000 | |||||||||||||||||||
Repayments of Credit Facility | (60,000) | — | — | (60,000) | |||||||||||||||||||
Dividends and distributions | (106,838) | — | — | (106,838) | |||||||||||||||||||
Series A Preferred Stock dividends | (5,425) | — | — | (5,425) | |||||||||||||||||||
Stock option exercises | 19,551 | — | — | 19,551 | |||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (73,500) | — | — | (73,500) | |||||||||||||||||||
Other financing activities | (2,125) | — | — | (2,125) | |||||||||||||||||||
Allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||
Contributions from non-controlling interests in Consolidated Funds | — | 148,270 | (15,005) | 133,265 | |||||||||||||||||||
Distributions to non-controlling interests in Consolidated Funds | — | (15,426) | 1,934 | (13,492) | |||||||||||||||||||
Borrowings under loan obligations by Consolidated Funds | — | 454,391 | 0 | 454,391 | |||||||||||||||||||
Repayments under loan obligations by Consolidated Funds | — | (73,609) | 0 | (73,609) | |||||||||||||||||||
Net cash provided by financing activities | 944,997 | 513,626 | (13,071) | 1,445,552 | |||||||||||||||||||
Effect of exchange rate changes | (4,167) | (9,953) | 0 | (14,120) | |||||||||||||||||||
Net change in cash and cash equivalents | 1,029,289 | (91,922) | 91,922 | 1,029,289 | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 138,384 | 606,321 | (606,321) | 138,384 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 1,167,673 | $ | 514,399 | $ | (514,399) | $ | 1,167,673 | |||||||||||||||
For the Nine Months Ended September 30, 2016 | |||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||
Revenues | |||||||||||||||
Management fees (includes ARCC Part I Fees of $90,884) | $ | 494,076 | $ | — | $ | (13,513 | ) | $ | 480,563 | ||||||
Performance fees | 337,612 | — | 74 | 337,686 | |||||||||||
Administrative and other fees | 22,761 | — | — | 22,761 | |||||||||||
Total revenues | 854,449 | — | (13,439 | ) | 841,010 | ||||||||||
Expenses | |||||||||||||||
Compensation and benefits | 335,249 | — | — | 335,249 | |||||||||||
Performance fee compensation | 253,739 | — | — | 253,739 | |||||||||||
General, administrative and other expense | 116,845 | — | — | 116,845 | |||||||||||
Expenses of the Consolidated Funds | — | 27,334 | (16,320 | ) | 11,014 | ||||||||||
Total expenses | 705,833 | 27,334 | (16,320 | ) | 716,847 | ||||||||||
Other income (expense) | |||||||||||||||
Investment income and net interest income (expense) (includes interest expense of $13,819) | 3,177 | — | (3,224 | ) | (47 | ) | |||||||||
Other income, net | 33,956 | — | — | 33,956 | |||||||||||
Net realized and unrealized gain on investments | 17,491 | — | 3,858 | 21,349 | |||||||||||
Investment income and net interest income of the Consolidated Funds (includes interest expense of $67,469) | — | 20,133 | 5,626 | 25,759 | |||||||||||
Net realized and unrealized loss on investments of the Consolidated Funds | — | (5,588 | ) | (135 | ) | (5,723 | ) | ||||||||
Total other income | 54,624 | 14,545 | 6,125 | 75,294 | |||||||||||
Income (loss) before taxes | 203,240 | (12,789 | ) | 9,006 | 199,457 | ||||||||||
Income tax expense (benefit) | 8,587 | (719 | ) | — | 7,868 | ||||||||||
Net income (loss) | 194,653 | (12,070 | ) | 9,006 | 191,589 | ||||||||||
Less: Net loss attributable to non-controlling interests in Consolidated Funds | — | (12,070 | ) | 9,006 | (3,064 | ) | |||||||||
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 | 116,404 | — | — | 116,404 | |||||||||||
Net income attributable to Ares Management, L.P. | 77,793 | — | — | 77,793 | |||||||||||
Less: Preferred equity distributions paid | 6,751 | — | — | 6,751 | |||||||||||
Net income attributable to Ares Management, L.P. common unitholders | $ | 71,042 | $ | — | $ | — | $ | 71,042 |
($ in millions) | Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total AUM | |||||||||||||||||||||||||||
Balance at 12/31/2020 | $ | 145,472 | $ | 27,439 | $ | 14,808 | $ | 9,261 | $ | 196,980 | ||||||||||||||||||||||
Net new par/equity commitments(1) | 4,519 | (21) | 730 | 700 | 5,928 | |||||||||||||||||||||||||||
Net new debt commitments | 2,543 | — | 1,880 | — | 4,423 | |||||||||||||||||||||||||||
Capital reductions | (545) | (2) | (232) | — | (779) | |||||||||||||||||||||||||||
Distributions | (740) | (634) | (171) | (131) | (1,676) | |||||||||||||||||||||||||||
Redemptions | (536) | — | — | — | (536) | |||||||||||||||||||||||||||
Change in fund value | 403 | 2,237 | 114 | 64 | 2,818 | |||||||||||||||||||||||||||
Balance at 3/31/2021 | $ | 151,116 | $ | 29,019 | $ | 17,129 | $ | 9,894 | $ | 207,158 | ||||||||||||||||||||||
Average AUM(2) | $ | 148,296 | $ | 28,230 | $ | 15,970 | $ | 9,578 | $ | 202,074 | ||||||||||||||||||||||
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 | — | — | — | 2,693 | |||||||||||||||||||||||||||
Net new par/equity commitments | 2,036 | 364 | 1,560 | — | 3,960 | |||||||||||||||||||||||||||
Net new debt commitments | 2,219 | — | 226 | — | 2,445 | |||||||||||||||||||||||||||
Capital reductions | (47) | (25) | — | — | (72) | |||||||||||||||||||||||||||
Distributions | (632) | (1,838) | (643) | — | (3,113) | |||||||||||||||||||||||||||
Redemptions | (464) | — | — | — | (464) | |||||||||||||||||||||||||||
Change in fund value | (3,836) | (1,652) | (238) | — | (5,726) | |||||||||||||||||||||||||||
Balance at 3/31/2020 | $ | 112,512 | $ | 22,015 | $ | 14,112 | $ | — | $ | 148,639 | ||||||||||||||||||||||
Average AUM(2) | $ | 111,528 | $ | 23,591 | $ | 13,660 | $ | — | $ | 148,779 | ||||||||||||||||||||||
(1) Reallocation of capital among the segments may occur for pools of capital with investment mandates in more than one investment strategy. This reallocation activity is presented within net new par/equity commitments and may result in balances presented to be negative. | ||||||||||||||||||||||||||||||||
(2) Represents the quarterly average of beginning and ending balances. | ||||||||||||||||||||||||||||||||
Credit Group | Private Equity Group | Real Estate Group | Total AUM | ||||||||||||
Balance at 6/30/2017 | $ | 67,447 | $ | 25,770 | $ | 10,792 | $ | 104,009 | |||||||
Net new par/equity commitments | 2,624 | — | 246 | 2,870 | |||||||||||
Net new debt commitments | 2,603 | — | — | 2,603 | |||||||||||
Distributions | (3,312 | ) | (1,373 | ) | (642 | ) | (5,327 | ) | |||||||
Change in fund value | 1,115 | 178 | 197 | 1,490 | |||||||||||
Balance at 9/30/2017 | $ | 70,477 | $ | 24,575 | $ | 10,593 | $ | 105,645 | |||||||
Average AUM(1) | $ | 68,963 | $ | 25,173 | $ | 10,693 | $ | 104,829 |
Credit Group | Private Equity Group | Real Estate Group | Total AUM | ||||||||||||
Balance at 6/30/2016 | $ | 60,325 | $ | 24,814 | $ | 10,124 | $ | 95,263 | |||||||
Net new par/equity commitments | 1,755 | 10 | 273 | 2,038 | |||||||||||
Net new debt commitments | 2,161 | — | 125 | 2,286 | |||||||||||
Distributions | (3,005 | ) | (841 | ) | (257 | ) | (4,103 | ) | |||||||
Change in fund value | 808 | 893 | 132 | 1,833 | |||||||||||
Balance at 9/30/2016 | $ | 62,044 | $ | 24,876 | $ | 10,397 | $ | 97,317 | |||||||
Average AUM(1) | $ | 61,185 | $ | 24,846 | $ | 10,262 | $ | 96,293 |
AUM: $207.2 | AUM: $148.6 |
FPAUM | AUM not yet paying fees | Non-fee paying(1) | General partner and affiliates |
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 | 6,981 | 323 | 767 | 8,071 | |||||||||||
Net new debt commitments | 5,338 | — | 509 | 5,847 | |||||||||||
Distributions | (8,967 | ) | (2,676 | ) | (1,017 | ) | (12,660 | ) | |||||||
Change in fund value | 3,054 | 1,887 | 582 | 5,523 | |||||||||||
Balance at 9/30/2017 | $ | 70,477 | $ | 24,575 | $ | 10,593 | $ | 105,645 | |||||||
Average AUM(1) | $ | 65,906 | $ | 25,011 | $ | 10,270 | $ | 101,187 |
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 | 4,880 | 2,164 | 787 | 7,831 | |||||||||||
Net new debt commitments | 3,703 | — | 225 | 3,928 | |||||||||||
Distributions | (8,610 | ) | (1,740 | ) | (1,125 | ) | (11,475 | ) | |||||||
Change in fund value | 1,685 | 1,474 | 242 | 3,401 | |||||||||||
Balance at 9/30/2016 | $ | 62,044 | $ | 24,876 | $ | 10,397 | $ | 97,317 | |||||||
Average AUM(1) | $ | 60,254 | $ | 24,432 | $ | 10,243 | $ | 94,929 |
($ in millions) | Credit Group | Private Equity Group | Real Estate Group | Strategic Initiatives | Total | |||||||||||||||||||||||||||
FPAUM Balance at 12/31/2020 | $ | 88,017 | $ | 21,172 | $ | 10,252 | $ | 6,596 | $ | 126,037 | ||||||||||||||||||||||
Commitments(1) | 1,585 | 79 | 496 | (231) | 1,929 | |||||||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 4,539 | 592 | 337 | 538 | 6,006 | |||||||||||||||||||||||||||
Capital reductions | (837) | — | (32) | (1) | (870) | |||||||||||||||||||||||||||
Distributions | (1,322) | (576) | (141) | (256) | (2,295) | |||||||||||||||||||||||||||
Redemptions | (646) | — | — | — | (646) | |||||||||||||||||||||||||||
Change in fund value | 279 | (1) | (92) | (20) | 166 | |||||||||||||||||||||||||||
Change in fee basis | — | (2,739) | — | — | (2,739) | |||||||||||||||||||||||||||
FPAUM Balance at 3/31/2021 | $ | 91,615 | $ | 18,527 | $ | 10,820 | $ | 6,626 | $ | 127,588 | ||||||||||||||||||||||
Average FPAUM(2) | $ | 89,817 | $ | 19,850 | $ | 10,537 | $ | 6,611 | $ | 126,815 | ||||||||||||||||||||||
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 | — | — | — | 2,596 | |||||||||||||||||||||||||||
Commitments | 1,240 | — | 1,368 | — | 2,608 | |||||||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 4,563 | 352 | 480 | — | 5,395 | |||||||||||||||||||||||||||
Capital reductions | (101) | — | (11) | — | (112) | |||||||||||||||||||||||||||
Distributions | (1,031) | (367) | (226) | — | (1,624) | |||||||||||||||||||||||||||
Redemptions | (481) | — | — | — | (481) | |||||||||||||||||||||||||||
Change in fund value | (2,906) | (5) | (48) | — | (2,959) | |||||||||||||||||||||||||||
Change in fee basis | — | — | (311) | — | (311) | |||||||||||||||||||||||||||
FPAUM Balance at 3/31/2020 | $ | 75,760 | $ | 17,020 | $ | 9,215 | $ | — | $ | 101,995 | ||||||||||||||||||||||
Average FPAUM(2) | $ | 73,821 | $ | 17,031 | $ | 8,590 | $ | — | $ | 99,442 | ||||||||||||||||||||||
(1) Reallocation of capital among the segments may occur for pools of capital with investment mandates in more than one investment strategy. This reallocation activity is presented within commitments and may result in balances presented to be negative. | ||||||||||||||||||||||||||||||||
(2) Represents the quarterly average of beginning and ending balances. |
Credit Group | Private Equity Group | Real Estate Group | Total | ||||||||||||
FPAUM Balance at 6/30/2017 | $ | 46,509 | $ | 17,292 | $ | 6,654 | $ | 70,455 | |||||||
Commitments | 2,434 | — | 245 | 2,679 | |||||||||||
Subscriptions/deployment/increase in leverage | 1,229 | 86 | 249 | 1,564 | |||||||||||
Redemptions/distributions/decrease in leverage | (2,354 | ) | (502 | ) | (216 | ) | (3,072 | ) | |||||||
Change in fund value | 816 | (67 | ) | 60 | 809 | ||||||||||
Change in fee basis | (12 | ) | (25 | ) | — | (37 | ) | ||||||||
FPAUM Balance at 9/30/2017 | $ | 48,622 | $ | 16,784 | $ | 6,992 | $ | 72,398 | |||||||
Average FPAUM(1) | $ | 47,567 | $ | 17,039 | $ | 6,824 | $ | 71,430 |
Credit Group | Private Equity Group | Real Estate Group | Total | ||||||||||||
FPAUM Balance at 6/30/2016 | $ | 40,586 | $ | 11,853 | $ | 6,644 | $ | 59,083 | |||||||
Commitments | 1,069 | 10 | 251 | 1,330 | |||||||||||
Subscriptions/deployment/increase in leverage | 1,040 | 41 | 60 | 1,141 | |||||||||||
Redemptions/distributions/decrease in leverage | (1,462 | ) | (275 | ) | (212 | ) | (1,949 | ) | |||||||
Change in fund value | 629 | — | (13 | ) | 616 | ||||||||||
Change in fee basis | — | (264 | ) | — | (264 | ) | |||||||||
FPAUM Balance at 9/30/2016 | $ | 41,862 | $ | 11,365 | $ | 6,730 | $ | 59,957 | |||||||
Average FPAUM(1) | $ | 41,225 | $ | 11,610 | $ | 6,688 | $ | 59,523 |
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 | 4,219 | 7,922 | 635 | 12,776 | |||||||||||
Subscriptions/deployment/increase in leverage | 3,511 | 923 | 459 | 4,893 | |||||||||||
Redemptions/distributions/decrease in leverage | (6,856 | ) | (1,420 | ) | (487 | ) | (8,763 | ) | |||||||
Change in fund value | 2,037 | (403 | ) | 130 | 1,764 | ||||||||||
Change in fee basis | 213 | (1,552 | ) | (285 | ) | (1,624 | ) | ||||||||
FPAUM Balance at 9/30/2017 | $ | 48,622 | $ | 16,784 | $ | 6,992 | $ | 72,398 | |||||||
Average FPAUM(1) | $ | 45,884 | $ | 15,644 | $ | 6,636 | $ | 68,164 |
Credit Group | Private Equity Group | Real Estate Group | Total | ||||||||||||
FPAUM Balance at 12/31/2015 | $ | 39,925 | $ | 12,462 | $ | 6,757 | $ | 59,144 | |||||||
Commitments | 2,340 | 10 | 424 | 2,774 | |||||||||||
Subscriptions/deployment/increase in leverage | 2,870 | 63 | 326 | 3,259 | |||||||||||
Redemptions/distributions/decrease in leverage | (4,443 | ) | (436 | ) | (600 | ) | (5,479 | ) | |||||||
Change in fund value | 1,230 | (168 | ) | (54 | ) | 1,008 | |||||||||
Change in fee basis | (60 | ) | (566 | ) | (123 | ) | (749 | ) | |||||||
FPAUM Balance at 9/30/2016 | $ | 41,862 | $ | 11,365 | $ | 6,730 | $ | 59,957 | |||||||
Average FPAUM(1) | $ | 40,495 | $ | 11,923 | $ | 6,702 | $ | 59,120 |
FPAUM: | FPAUM: |
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 |
Three Months Ended September 30, | Favorable (Unfavorable) | Nine Months Ended September 30, | Favorable (Unfavorable) | ||||||||||||||||||||||||||
2017 | 2016 | $ Change | % Change | 2017 | 2016 | $ Change | % Change | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $24,036, $76,436 and $33,260, $90,884 for the three and nine months ended September 30, 2017 and 2016, respectively) | $ | 183,177 | $ | 163,609 | $ | 19,568 | 12 | % | $ | 535,990 | $ | 480,563 | $ | 55,427 | 12 | % | |||||||||||||
Performance fees | 87,008 | 164,482 | (77,474 | ) | (47 | )% | 480,204 | 337,686 | 142,518 | 42 | % | ||||||||||||||||||
Administrative and other fees | 13,486 | 7,369 | 6,117 | 83 | % | 43,024 | 22,761 | 20,263 | 89 | % | |||||||||||||||||||
Total revenues | 283,671 | 335,460 | (51,789 | ) | (15 | )% | 1,059,218 | 841,010 | 218,208 | 26 | % | ||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Compensation and benefits | 129,347 | 111,916 | (17,431 | ) | (16 | )% | 384,905 | 335,249 | (49,656 | ) | (15 | )% | |||||||||||||||||
Performance fee compensation | 58,637 | 123,173 | 64,536 | 52 | % | 361,044 | 253,739 | (107,305 | ) | (42 | )% | ||||||||||||||||||
General, administrative and other expenses | 47,104 | 38,197 | (8,907 | ) | (23 | )% | 145,193 | 116,845 | (28,348 | ) | (24 | )% | |||||||||||||||||
Transaction support expense | — | — | — | NM | 275,177 | — | (275,177 | ) | NM | ||||||||||||||||||||
Expenses of the Consolidated Funds | 19,039 | 10,088 | (8,951 | ) | NM | 27,472 | 11,014 | (16,458 | ) | (149 | )% | ||||||||||||||||||
Total expenses | 254,127 | 283,374 | 29,247 | 10 | % | 1,193,791 | 716,847 | (476,944 | ) | (67 | )% | ||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||
Investment income and net interest expense (includes interest expense of $5,343, $15,576 and $4,136, $13,819 for the three and nine months ended September 30, 2017 and 2016, respectively) | (1,831 | ) | (1,681 | ) | (150 | ) | (9 | )% | (6,218 | ) | (47 | ) | (6,171 | ) | NM | ||||||||||||||
Other income (expense), net | (2,492 | ) | 23,042 | (25,534 | ) | NM | 16,826 | 33,956 | (17,130 | ) | (50 | )% | |||||||||||||||||
Net realized and unrealized gain on investments | 7,209 | 19,358 | (12,149 | ) | (63 | )% | 39,943 | 21,349 | 18,594 | 87 | % | ||||||||||||||||||
Investment income and net interest income of the Consolidated Funds (includes interest expense of $28,127, $86,324 and $26,413, $67,469 for the three and nine months ended September 30, 2017 and 2016, respectively) | 20,054 | 8,737 | 11,317 | 130 | % | 41,675 | 25,759 | 15,916 | 62 | % | |||||||||||||||||||
Net realized and unrealized gain (loss) on investments of the Consolidated Funds | 35,940 | 23,883 | 12,057 | 50 | % | 55,263 | (5,723 | ) | 60,986 | NM | |||||||||||||||||||
Total other income | 58,880 | 73,339 | (14,459 | ) | (20 | )% | 147,489 | 75,294 | 72,195 | 96 | % | ||||||||||||||||||
Income before taxes | 88,424 | 125,425 | (37,001 | ) | (30 | )% | 12,916 | 199,457 | (186,541 | ) | (94 | )% | |||||||||||||||||
Income tax expense (benefit) | 4,552 | 7,641 | 3,089 | 40 | % | (28,459 | ) | 7,868 | 36,327 | NM | |||||||||||||||||||
Net income | 83,872 | 117,784 | (33,912 | ) | (29 | )% | 41,375 | 191,589 | (150,214 | ) | (78 | )% | |||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds | 18,195 | 7,861 | 10,334 | 131 | % | 25,403 | (3,064 | ) | 28,467 | NM | |||||||||||||||||||
Less: Net income attributable to redeemable interests in Ares Operating Group entities | — | 107 | (107 | ) | NM | — | 456 | (456 | ) | NM | |||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests in Ares Operating Group entities | 37,839 | 66,511 | (28,672 | ) | (43 | )% | (20,610 | ) | 116,404 | (137,014 | ) | NM | |||||||||||||||||
Net income attributable to Ares Management, L.P. | 27,838 | 43,305 | (15,467 | ) | (36 | )% | 36,582 | 77,793 | (41,211 | ) | (53 | )% | |||||||||||||||||
Less: Preferred equity distributions paid | 5,425 | 6,751 | 1,326 | 20 | % | 16,275 | 6,751 | (9,524 | ) | (141 | )% | ||||||||||||||||||
Net income attributable to Ares Management, L.P. common unitholders | $ | 22,413 | $ | 36,554 | (14,141 | ) | (39 | )% | $ | 20,307 | $ | 71,042 | (50,735 | ) | (71 | )% |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Management fees | $ | 320,273 | $ | 263,849 | $ | 56,424 | 21 | % | |||||||||||||||||||||||||||||||||||||||
Carried interest allocation | 297,535 | (230,876) | 528,411 | NM | |||||||||||||||||||||||||||||||||||||||||||
Incentive fees | 2,820 | (3,249) | 6,069 | NM | |||||||||||||||||||||||||||||||||||||||||||
Principal investment income (loss) | 25,100 | (26,723) | 51,823 | NM | |||||||||||||||||||||||||||||||||||||||||||
Administrative, transaction and other fees | 12,660 | 10,408 | 2,252 | 22 | |||||||||||||||||||||||||||||||||||||||||||
Total revenues | 658,388 | 13,409 | 644,979 | NM | |||||||||||||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 231,850 | 180,084 | (51,766) | (29) | |||||||||||||||||||||||||||||||||||||||||||
Performance related compensation | 221,432 | (167,899) | (389,331) | NM | |||||||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | 67,656 | 62,331 | (5,325) | (9) | |||||||||||||||||||||||||||||||||||||||||||
Expenses of Consolidated Funds | 4,171 | 7,443 | 3,272 | 44 | |||||||||||||||||||||||||||||||||||||||||||
Total expenses | 525,109 | 81,959 | (443,150) | NM | |||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 5,433 | (8,034) | 13,467 | NM | |||||||||||||||||||||||||||||||||||||||||||
Interest and dividend income | 960 | 1,790 | (830) | (46) | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (6,695) | (5,306) | (1,389) | (26) | |||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | (4,149) | 5,464 | (9,613) | NM | |||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | 16,422 | (254,761) | 271,183 | NM | |||||||||||||||||||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 115,839 | 113,225 | 2,614 | 2 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (71,025) | (80,241) | 9,216 | 11 | |||||||||||||||||||||||||||||||||||||||||||
Total other income (expense) | 56,785 | (227,863) | 284,648 | NM | |||||||||||||||||||||||||||||||||||||||||||
Income (loss) before taxes | 190,064 | (296,413) | 486,477 | NM | |||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 25,754 | (20,616) | (46,370) | NM | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 164,310 | (275,797) | 440,107 | NM | |||||||||||||||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds | 49,858 | (166,406) | 216,264 | NM | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Ares Operating Group entities | 114,452 | (109,391) | 223,843 | NM | |||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to redeemable interest in Ares Operating Group entities | 32 | — | 32 | NM | |||||||||||||||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests in Ares Operating Group entities | 56,042 | (78,355) | 134,397 | NM | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Ares Management Corporation | 58,378 | (31,036) | 89,414 | NM | |||||||||||||||||||||||||||||||||||||||||||
Less: Series A Preferred Stock dividends paid | 5,425 | 5,425 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Ares Management Corporation Class A common stockholders | $ | 52,953 | $ | (36,461) | 89,414 | NM |
($ in millions) | Three months ended March 31, 2021 | Primary Drivers | Three months ended March 31, 2020 | Primary Drivers | |||||||||||||
Credit funds | $ | 85.6 | Four direct lending funds and one alternative credit fund with $11.7 billion of IGAUM generating returns in excess of their hurdle rates, primarily consisting of: $15.5 million from Ares Private Credit Solutions, L.P. ("PCS"), $27.9 million from Ares Capital Europe IV, L.P. ("ACE IV") and $12.0 million from Ares Pathfinder Fund, L.P. (“Pathfinder”). The carried interest allocation generated by these funds was driven by net investment income on an increasing invested capital base. In addition, Ares Capital Europe III, L.P. ("ACE III") generated carried interest allocation of $9.5 million primarily driven by net investment income during the period. | $ | (27.5) | Four direct lending funds with $10.2 billion of IGAUM generating lower returns due to market volatility driven by the COVID-19 pandemic, primarily from ACE III and Ares Private Credit Solutions, L.P. ("PCS") that led to the reversal of unrealized carried interest allocation of $7.8 million and $18.2 million during the period, respectively. Ares Capital Europe IV, L.P. ("ACE IV") generated $4.6 million of carried interest allocation during the period. | |||||||||||
Private equity funds | 188.8 | Ares Corporate Opportunities Fund IV, L.P. ("ACOF IV") generated carried interest allocation of $105.8 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 $43.3 million from Ares Special Opportunities Fund, L.P. (“ASOF”) and $18.4 million from our sixth flagship corporate private equity fund. | (194.4) | Market depreciation across several investments that led to the reversal of unrealized carried interest allocation of $49.0 million from Ares Corporate Opportunities Fund III, L.P. (“ACOF III”), $23.7 million from ACOF IV, $75.1 million from Ares Corporate Opportunities Fund V, L.P. (“ACOF V”) and $27.4 million from Ares Energy Opportunities Fund, L.P. ("AEOF"). The market depreciation was driven by the extreme market volatility from the COVID-19 pandemic and the energy market dislocation. | |||||||||||||
Real estate funds | 22.8 | Market appreciation from properties within real estate equity funds, primarily driven by gains generated across several industrial and multi-family assets, generated carried interest allocation of $9.2 million from US Real Estate Fund IX, L.P. ("US IX") and $8.1 million from US Real Estate Fund VIII. | (9.0) | Market depreciation from multiple properties within real estate equity funds that led to the reversal of unrealized carried interest allocation primarily from US IX and Ares European Real Estate Fund IV, L.P. ("EF IV") in the amount of $6.8 million and $9.0 million for the period, respectively, offset by gains generated in multiple funds from the monetization of a pan-European logistics portfolio. | |||||||||||||
Strategic initiatives funds | 0.3 | Market appreciation of investments in an Asian secured lending fund. | — | No activity. | |||||||||||||
Carried interest allocation | $ | 297.5 | $ | (230.9) |
($ in millions) | Three months ended March 31, 2021 | Primary Drivers | Three months ended March 31, 2020 | Primary Drivers | |||||||||||||
Credit funds | $ | 2.2 | Two direct lending funds with incentive fees that crystallized during the period. | $ | (3.2) | One-time reversal of incentive fees following management's decision to extend the measurement period after the fees were crystallized. | |||||||||||
Real estate funds | 0.7 | Incentive fees generated from ACRE. | — | No activity | |||||||||||||
Incentive fees | $ | 2.8 | $ | (3.2) |
Three months ended March 31, | Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses of the Consolidated Funds | $ | (4,171) | $ | (7,443) | $ | 3,272 | 44 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments of Consolidated Funds | 16,422 | (254,761) | 271,183 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and other income of Consolidated Funds | 115,839 | 113,225 | 2,614 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense of Consolidated Funds | (71,025) | (80,241) | 9,216 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before taxes | 57,065 | (229,220) | 286,285 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense of Consolidated Funds | (28) | (28) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 57,037 | (229,248) | 286,285 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Revenues attributable to Ares Management Corporation eliminated upon consolidation | 17,371 | (35,491) | 52,862 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Other expense, net attributable to Ares Management Corporation eliminated upon consolidation | (10,192) | (27,351) | 17,159 | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests in Consolidated Funds | $ | 49,858 | $ | (166,406) | 216,264 | NM |
Three Months Ended | Favorable (Unfavorable) | Nine Months Ended | Favorable (Unfavorable) | Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | $ Change | % Change | 2017 | 2016 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee related earnings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings: | Fee Related Earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Group | $ | 72,444 | $ | 63,578 | $ | 8,866 | 14 | % | $ | 204,600 | $ | 178,670 | $ | 25,930 | 15 | % | Credit Group | $ | 147,672 | $ | 114,257 | $ | 33,415 | 29 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Group | 27,851 | 14,870 | 12,981 | 87 | % | 84,626 | 55,038 | 29,588 | 54 | % | Private Equity Group | 23,886 | 27,038 | (3,152) | (12) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Group | 3,641 | 6,233 | (2,592 | ) | (42 | )% | 10,473 | 12,081 | (1,608 | ) | (13 | )% | Real Estate Group | 11,044 | 9,540 | 1,504 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Strategic Initiatives | Strategic Initiatives | 8,927 | — | 8,927 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations Management Group | (45,957 | ) | (39,346 | ) | (6,611 | ) | (17 | )% | (141,610 | ) | (121,841 | ) | (19,769 | ) | (16 | )% | Operations Management Group | (63,063) | (57,731) | (5,332) | (9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee related earnings | $ | 57,979 | $ | 45,335 | 12,644 | 28 | % | $ | 158,089 | $ | 123,948 | 34,141 | 28 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance related earnings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | Fee Related Earnings | $ | 128,466 | $ | 93,104 | 35,362 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized Income: | Realized Income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Group | $ | 16,309 | $ | 24,804 | (8,495 | ) | (34 | )% | $ | 27,677 | $ | 47,783 | (20,106 | ) | (42 | )% | Credit Group | $ | 150,749 | $ | 117,391 | $ | 33,358 | 28 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Group | 11,967 | 42,241 | (30,274 | ) | (72 | )% | 113,712 | 73,287 | 40,425 | 55 | % | Private Equity Group | 29,689 | 60,907 | (31,218) | (51) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Group | 11,216 | 9,027 | 2,189 | 24 | % | 32,678 | 16,000 | 16,678 | 104 | % | Real Estate Group | 12,495 | 20,085 | (7,590) | (38) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Strategic Initiatives | Strategic Initiatives | 6,658 | — | 6,658 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations Management Group | 3,960 | (4,675 | ) | 8,635 | NM | 3,184 | (17,787 | ) | 20,971 | NM | Operations Management Group | (62,798) | (64,238) | 1,440 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance related earnings | $ | 43,452 | $ | 71,397 | (27,945 | ) | (39 | )% | $ | 177,251 | $ | 119,283 | 57,968 | 49 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Economic net income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Group | $ | 88,753 | $ | 88,382 | 371 | < 1% | $ | 232,277 | $ | 226,453 | 5,824 | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Group | 39,818 | 57,111 | (17,293 | ) | (30 | )% | 198,338 | 128,325 | 70,013 | 55 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Group | 14,857 | 15,260 | (403 | ) | (3 | )% | 43,151 | 28,081 | 15,070 | 54 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations Management Group | (41,997 | ) | (44,021 | ) | 2,024 | 5 | % | (138,426 | ) | (139,628 | ) | 1,202 | 1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Economic net income | $ | 101,431 | $ | 116,732 | (15,301 | ) | (13 | )% | $ | 335,340 | $ | 243,231 | 92,109 | 38 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributable earnings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Group | $ | 73,120 | $ | 81,542 | (8,422 | ) | (10 | )% | $ | 204,402 | $ | 221,357 | (16,955 | ) | (8 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Equity Group | 75,809 | 45,481 | 30,328 | 67 | % | 145,696 | 104,162 | 41,534 | 40 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Group | 4,736 | 6,408 | (1,672 | ) | (26 | )% | 12,596 | 16,867 | (4,271 | ) | (25 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations Management Group | (53,214 | ) | (66,696 | ) | 13,482 | 20 | % | (151,642 | ) | (157,550 | ) | 5,908 | 4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributable earnings | $ | 100,451 | $ | 66,735 | 33,716 | 51 | % | $ | 211,052 | $ | 184,836 | 26,216 | 14 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized Income | Realized Income | $ | 136,793 | $ | 134,145 | 2,648 | 2 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Economic net income | |||||||||||||||
Income before taxes | $ | 88,424 | $ | 125,425 | $ | 12,916 | $ | 199,457 | |||||||
Adjustments: | |||||||||||||||
Amortization of intangibles | 3,651 | 6,378 | 14,200 | 20,762 | |||||||||||
Depreciation expense | 3,468 | 2,148 | 9,458 | 5,940 | |||||||||||
Equity compensation expenses | 18,091 | 8,476 | 52,097 | 27,185 | |||||||||||
Acquisition and merger-related expenses | 2,878 | (17,611 | ) | 258,722 | (17,054 | ) | |||||||||
Placement fees and underwriting costs | 4,495 | 2,202 | 14,317 | 4,886 | |||||||||||
Offering costs | 33 | — | 688 | — | |||||||||||
Other non-cash expense | — | (1,728 | ) | — | (1,728 | ) | |||||||||
(Income) loss before taxes of non-controlling interests in consolidated subsidiaries | (216 | ) | — | 407 | — | ||||||||||
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (19,393 | ) | (8,558 | ) | (27,465 | ) | 3,783 | ||||||||
Economic net income | 101,431 | 116,732 | 335,340 | 243,231 | |||||||||||
Unconsolidated performance fees income - realized | (178,989 | ) | (132,837 | ) | (261,924 | ) | (220,790 | ) | |||||||
Unconsolidated performance fees income - unrealized | 89,423 | (32,368 | ) | (223,467 | ) | (118,334 | ) | ||||||||
Unconsolidated performance fee compensation - realized | 140,979 | 93,778 | 199,253 | 146,792 | |||||||||||
Unconsolidated performance fee compensation - unrealized | (82,342 | ) | 29,395 | 161,791 | 106,947 | ||||||||||
Unconsolidated net investment income | (12,523 | ) | (29,365 | ) | (52,904 | ) | (33,898 | ) | |||||||
Fee related earnings | 57,979 | 45,335 | 158,089 | 123,948 | |||||||||||
Unconsolidated performance fees—realized | 178,989 | 132,837 | 261,924 | 220,790 | |||||||||||
Unconsolidated performance fee compensation—realized | (140,979 | ) | (93,778 | ) | (199,253 | ) | (146,792 | ) | |||||||
Unconsolidated investment and other income realized, net | 20,855 | (5,877 | ) | 29,922 | 11,381 | ||||||||||
Adjustments: | |||||||||||||||
One-time acquisition costs | (2,818 | ) | (145 | ) | (3,701 | ) | (489 | ) | |||||||
Dividend equivalent | (4,223 | ) | (2,045 | ) | (9,428 | ) | (3,799 | ) | |||||||
Equity income | 397 | 36 | 533 | 883 | |||||||||||
Income tax expense | (1,753 | ) | (5,278 | ) | (2,571 | ) | (10,260 | ) | |||||||
Placement fees and underwriting costs | (4,495 | ) | (2,202 | ) | (14,317 | ) | (4,886 | ) | |||||||
Non-cash depreciation and amortization | (3,468 | ) | (2,148 | ) | (9,458 | ) | (5,940 | ) | |||||||
Offering costs | (33 | ) | — | (688 | ) | — | |||||||||
Distributable earnings | $ | 100,451 | $ | 66,735 | $ | 211,052 | $ | 184,836 | |||||||
Performance related earnings | |||||||||||||||
Economic net income | $ | 101,431 | $ | 116,732 | $ | 335,340 | $ | 243,231 | |||||||
Less: fee related earnings | (57,979 | ) | (45,335 | ) | (158,089 | ) | (123,948 | ) | |||||||
Performance related earnings | $ | 43,452 | $ | 71,397 | $ | 177,251 | $ | 119,283 |
Three months ended March 31, | |||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | |||||||||||||||||||||
Income (loss) before taxes | $ | 190,064 | $ | (296,413) | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Depreciation and amortization expense | 14,100 | 5,542 | |||||||||||||||||||||
Equity compensation expense | 55,649 | 32,557 | |||||||||||||||||||||
Acquisition and merger-related expense | 8,590 | 3,137 | |||||||||||||||||||||
Deferred placement fees | 297 | 5,415 | |||||||||||||||||||||
Other income, net | (473) | — | |||||||||||||||||||||
Net expense of non-controlling interests in consolidated subsidiaries | 689 | 20,497 | |||||||||||||||||||||
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (49,886) | 166,378 | |||||||||||||||||||||
Unconsolidated performance (income) loss—unrealized | (224,954) | 387,657 | |||||||||||||||||||||
Unconsolidated performance related compensation—unrealized | 160,337 | (285,892) | |||||||||||||||||||||
Unconsolidated net investment (income) loss—unrealized | (17,620) | 95,267 | |||||||||||||||||||||
Realized Income | 136,793 | 134,145 | |||||||||||||||||||||
Unconsolidated performance income—realized | (76,981) | (151,770) | |||||||||||||||||||||
Unconsolidated performance related compensation—realized | 61,096 | 117,993 | |||||||||||||||||||||
Unconsolidated investment (income) loss—realized | 7,558 | (7,264) | |||||||||||||||||||||
Fee Related Earnings | $ | 128,466 | $ | 93,104 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Unconsolidated performance fee income - realized | $ | 178,989 | $ | 132,837 | $ | 261,924 | $ | 220,790 | |||||||
Performance fee income - realized earned from Consolidated Funds | — | — | (8,086 | ) | — | ||||||||||
Performance fee - realized reclass(1) | (981 | ) | (2,170 | ) | (2,181 | ) | (5,053 | ) | |||||||
Performance fee income - realized | 178,008 | 130,667 | 251,657 | 215,737 | |||||||||||
Unconsolidated performance fee income - unrealized | (89,423 | ) | 32,368 | 223,467 | 118,334 | ||||||||||
Performance fee income - unrealized earned from Consolidated Funds | (1,371 | ) | (799 | ) | 4,327 | 74 | |||||||||
Performance fee - unrealized reclass(1) | (206 | ) | 2,246 | 753 | 3,541 | ||||||||||
Performance fee income - unrealized | (91,000 | ) | 33,815 | 228,547 | 121,949 | ||||||||||
Total GAAP performance fee income | $ | 87,008 | $ | 164,482 | $ | 480,204 | $ | 337,686 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Unconsolidated net investment income | $ | 12,523 | $ | 29,365 | $ | 52,904 | $ | 33,898 | |||||||
Net investment income from Consolidated Funds | 45,254 | 24,632 | 73,675 | 20,670 | |||||||||||
Performance fee - reclass(1) | 1,187 | (76 | ) | 1,428 | 1,512 | ||||||||||
Change in value of contingent consideration | (60 | ) | 17,690 | 20,156 | 17,486 | ||||||||||
Other non-cash expense | — | 1,728 | — | 1,728 | |||||||||||
Offering costs | (33 | ) | — | (688 | ) | — | |||||||||
Income before taxes of non-controlling interests in consolidated subsidiaries(2) | 9 | — | 14 | — | |||||||||||
Total GAAP other income | $ | 58,880 | $ | 73,339 | $ | 147,489 | $ | 75,294 |
Three Months Ended | Favorable (Unfavorable) | Nine Months Ended | Favorable (Unfavorable) | ||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2017 | 2016 | $ Change | % Change | 2017 | 2016 | $ Change | % Change | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Management fees (includes ARCC Part I Fees of $24,036, $76,436 and $33,260, $90,884 for the three and nine months ended September 30, 2017 and 2016, respectively) | $ | 120,178 | $ | 115,794 | $ | 4,384 | 4 | % | $ | 354,179 | $ | 332,182 | $ | 21,997 | 7 | % | |||||||||||||
Other fees | 5,668 | 280 | 5,388 | NM | 15,834 | 939 | 14,895 | NM | |||||||||||||||||||||
Compensation and benefits | (46,551 | ) | (45,222 | ) | (1,329 | ) | (3 | )% | (142,647 | ) | (135,068 | ) | (7,579 | ) | (6 | )% | |||||||||||||
General, administrative and other expenses | (6,851 | ) | (7,274 | ) | 423 | 6 | % | (22,766 | ) | (19,383 | ) | (3,383 | ) | (17 | )% | ||||||||||||||
Fee Related Earnings | 72,444 | 63,578 | 8,866 | 14 | % | 204,600 | 178,670 | 25,930 | 15 | % | |||||||||||||||||||
Performance fees-realized | 3,296 | 22,422 | (19,126 | ) | (85 | )% | 19,957 | 44,624 | (24,667 | ) | (55 | )% | |||||||||||||||||
Performance fees-unrealized | 33,033 | 11,152 | 21,881 | 196 | % | 41,062 | (1,544 | ) | 42,606 | NM | |||||||||||||||||||
Performance fee compensation-realized | (1,466 | ) | (7,241 | ) | 5,775 | 80 | % | (8,649 | ) | (9,978 | ) | 1,329 | 13 | % | |||||||||||||||
Performance fee compensation-unrealized | (19,820 | ) | (11,686 | ) | (8,134 | ) | (70 | )% | (27,357 | ) | (9,853 | ) | (17,504 | ) | (178 | )% | |||||||||||||
Net performance fees | 15,043 | 14,647 | 396 | 3 | % | 25,013 | 23,249 | 1,764 | 8 | % | |||||||||||||||||||
Investment income-realized | 6,206 | 588 | 5,618 | NM | 9,049 | 390 | 8,659 | NM | |||||||||||||||||||||
Investment income (loss)-unrealized | (1,123 | ) | 5,460 | (6,583 | ) | NM | 16 | 9,256 | (9,240 | ) | (100 | )% | |||||||||||||||||
Interest and other investment income (loss) | (540 | ) | 5,940 | (6,480 | ) | NM | 2,399 | 21,617 | (19,218 | ) | (89 | )% | |||||||||||||||||
Interest expense | (3,277 | ) | (1,831 | ) | (1,446 | ) | (79 | )% | (8,800 | ) | (6,729 | ) | (2,071 | ) | (31 | )% | |||||||||||||
Net investment income | 1,266 | 10,157 | (8,891 | ) | (88 | )% | 2,664 | 24,534 | (21,870 | ) | (89 | )% | |||||||||||||||||
Performance related earnings | 16,309 | 24,804 | (8,495 | ) | (34 | )% | 27,677 | 47,783 | (20,106 | ) | (42 | )% | |||||||||||||||||
Economic net income | $ | 88,753 | $ | 88,382 | 371 | < 1% | $ | 232,277 | $ | 226,453 | 5,824 | 3 | % | ||||||||||||||||
Distributable earnings | $ | 73,120 | $ | 81,542 | (8,422 | ) | (10 | )% | $ | 204,402 | $ | 221,357 | (16,955 | ) | (8 | )% |
As of September 30, | As of December 31, | ||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
CLOs | $ | 1,407 | $ | 8,182 | |||
CSF | 29,103 | 26,416 | |||||
ACE II | 22,691 | 16,427 | |||||
ACE III | 34,649 | 11,541 | |||||
Other credit funds | 66,589 | 42,386 | |||||
Total Credit Group | $ | 154,439 | $ | 104,952 |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | ||||||||||||||||||||||
Realized | Unrealized | Net | Realized | Unrealized | Net | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
CLOs | $ | 1,602 | $ | (2,409 | ) | $ | (807 | ) | $ | 10,269 | $ | (7,100 | ) | $ | 3,169 | ||||||||
CSF | — | 10,104 | 10,104 | — | 21,226 | 21,226 | |||||||||||||||||
ACE II | — | 2,745 | 2,745 | 12,124 | (13,669 | ) | (1,545 | ) | |||||||||||||||
ACE III | — | 9,621 | 9,621 | — | 3,067 | 3,067 | |||||||||||||||||
Other credit funds | 1,694 | 12,972 | 14,666 | 29 | 7,628 | 7,657 | |||||||||||||||||
Total Credit Group | $ | 3,296 | $ | 33,033 | $ | 36,329 | $ | 22,422 | $ | 11,152 | $ | 33,574 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||||
Realized | Unrealized | Net | Realized | Unrealized | Net | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
CLOs | $ | 6,485 | $ | (6,896 | ) | $ | (411 | ) | $ | 27,920 | $ | (16,967 | ) | $ | 10,953 | ||||||||
CSF | — | 2,686 | 2,686 | — | 5,436 | 5,436 | |||||||||||||||||
ACE II | 3,201 | 5,303 | 8,504 | 12,124 | (9,275 | ) | 2,849 | ||||||||||||||||
ACE III | — | 21,163 | 21,163 | — | 9,469 | 9,469 | |||||||||||||||||
Other credit funds | 10,271 | 18,806 | 29,077 | 4,580 | 9,793 | 14,373 | |||||||||||||||||
Total Credit Group | $ | 19,957 | $ | 41,062 | $ | 61,019 | $ | 44,624 | $ | (1,544 | ) | $ | 43,080 |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | ||||||||||||||||||||||||||||||
Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
CLOs | $ | (1,602 | ) | $ | — | $ | (807 | ) | $ | (2,409 | ) | $ | (10,269 | ) | $ | 3,241 | $ | (72 | ) | $ | (7,100 | ) | |||||||||
CSF | — | 10,104 | — | 10,104 | — | 21,226 | — | 21,226 | |||||||||||||||||||||||
ACE II | — | 2,745 | — | 2,745 | (12,124 | ) | — | (1,545 | ) | (13,669 | ) | ||||||||||||||||||||
ACE III | — | 9,621 | — | 9,621 | — | 3,067 | — | 3,067 | |||||||||||||||||||||||
Other credit funds | (1,694 | ) | 15,701 | (1,035 | ) | 12,972 | (29 | ) | 8,241 | (584 | ) | 7,628 | |||||||||||||||||||
Total Credit Group | $ | (3,296 | ) | $ | 38,171 | $ | (1,842 | ) | $ | 33,033 | $ | (22,422 | ) | $ | 35,775 | $ | (2,201 | ) | $ | 11,152 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||||||||
Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
CLOs | $ | (6,485 | ) | $ | 316 | $ | (727 | ) | $ | (6,896 | ) | $ | (27,920 | ) | $ | 11,218 | $ | (265 | ) | $ | (16,967 | ) | |||||||||
CSF | — | 2,686 | — | 2,686 | — | 5,436 | — | 5,436 | |||||||||||||||||||||||
ACE II | (3,201 | ) | 8,504 | — | 5,303 | (12,124 | ) | 3,115 | (266 | ) | (9,275 | ) | |||||||||||||||||||
ACE III | — | 21,163 | — | 21,163 | — | 9,469 | — | 9,469 | |||||||||||||||||||||||
Other credit funds | (10,271 | ) | 29,177 | (100 | ) | 18,806 | (4,580 | ) | 16,313 | (1,940 | ) | 9,793 | |||||||||||||||||||
Total Credit Group | $ | (19,957 | ) | $ | 61,846 | $ | (827 | ) | $ | 41,062 | $ | (44,624 | ) | $ | 45,551 | $ | (2,471 | ) | $ | (1,544 | ) |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Management fees | $ | 232,877 | $ | 197,437 | $ | 35,440 | 18 | % | |||||||||||||||||||||||||||||||||||||||
Other fees | 5,969 | 3,058 | 2,911 | 95 | |||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | (80,365) | (70,925) | (9,440) | (13) | |||||||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (10,809) | (15,313) | 4,504 | 29 | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 147,672 | $ | 114,257 | 33,415 | 29 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 147,672 | $ | 114,257 | $ | 33,415 | 29 | % | |||||||||||||||||||||||||||||||||||||||
Performance income—realized | 3,816 | 9,016 | (5,200) | (58) | |||||||||||||||||||||||||||||||||||||||||||
Performance related compensation—realized | (2,893) | (7,899) | 5,006 | 63 | |||||||||||||||||||||||||||||||||||||||||||
Realized net performance income | 923 | 1,117 | (194) | (17) | |||||||||||||||||||||||||||||||||||||||||||
Investment loss—realized | — | (843) | 843 | 100 | |||||||||||||||||||||||||||||||||||||||||||
Interest and other investment income—realized | 3,669 | 4,575 | (906) | (20) | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (1,515) | (1,715) | 200 | 12 | |||||||||||||||||||||||||||||||||||||||||||
Realized net investment income | 2,154 | 2,017 | 137 | 7 | |||||||||||||||||||||||||||||||||||||||||||
Realized Income | $ | 150,749 | $ | 117,391 | 33,358 | 28 |
As of March 31, 2021 | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||
($ 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 | $ | 87,446 | $ | 52,468 | $ | 34,978 | $ | 77,959 | $ | 46,776 | $ | 31,183 | |||||||||||||||||||||||
ACE IV | 121,369 | 75,249 | 46,120 | 93,462 | 57,946 | 35,516 | |||||||||||||||||||||||||||||
PCS | 117,424 | 69,401 | 48,023 | 101,656 | 60,084 | 41,572 | |||||||||||||||||||||||||||||
Other credit funds | 131,396 | 84,452 | 46,944 | 100,238 | 61,898 | 38,340 | |||||||||||||||||||||||||||||
Total accrued carried interest | 457,635 | 281,570 | 176,065 | 373,315 | 226,704 | 146,611 | |||||||||||||||||||||||||||||
Incentive fees | 24,083 | 15,059 | 9,024 | 31,653 | 18,601 | 13,052 | |||||||||||||||||||||||||||||
Total Credit Group | $ | 481,718 | $ | 296,629 | $ | 185,089 | $ | 404,968 | $ | 245,305 | $ | 159,663 |
As of December 31, 2020 | Activity during the period | As of March 31, 2021 | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | Fee Type | Accrued Carried Interest | Change in Unrealized | Realized | Foreign Exchange and Other Adjustments | Accrued Carried Interest | |||||||||||||||||||||||||||||||||||
ACE III | European | $ | 77,959 | $ | 9,487 | $ | — | $ | — | $ | 87,446 | ||||||||||||||||||||||||||||||
ACE IV | European | 93,462 | 27,907 | — | — | 121,369 | |||||||||||||||||||||||||||||||||||
PCS | European | 101,656 | 15,528 | — | 240 | 117,424 | |||||||||||||||||||||||||||||||||||
Other credit funds | European | 99,980 | 32,720 | (137) | (1,422) | 131,141 | |||||||||||||||||||||||||||||||||||
Other credit funds | American | 258 | (3) | — | — | 255 | |||||||||||||||||||||||||||||||||||
Total Credit Group | $ | 373,315 | $ | 85,639 | $ | (137) | $ | (1,182) | $ | 457,635 |
($ in millions) | Syndicated Loans | High Yield | Multi-Asset Credit | Alternative Credit | U.S. Direct Lending | European Direct Lending | Total Credit Group | ||||||||||||||||||||||||||||||||||||||||
Balance at 12/31/2020 | $ | 27,967 | $ | 2,863 | $ | 2,953 | $ | 12,897 | $ | 56,516 | $ | 42,276 | $ | 145,472 | |||||||||||||||||||||||||||||||||
Net new par/equity commitments | 115 | 101 | 393 | 1,230 | 1,067 | 1,613 | 4,519 | ||||||||||||||||||||||||||||||||||||||||
Net new debt commitments | 722 | — | — | — | 1,821 | — | 2,543 | ||||||||||||||||||||||||||||||||||||||||
Capital reductions | (59) | — | — | — | (451) | (35) | (545) | ||||||||||||||||||||||||||||||||||||||||
Distributions | (39) | — | (3) | (97) | (339) | (262) | (740) | ||||||||||||||||||||||||||||||||||||||||
Redemptions | (89) | (82) | (78) | (235) | (41) | (11) | (536) | ||||||||||||||||||||||||||||||||||||||||
Change in fund value | (175) | 45 | 67 | 148 | 778 | (460) | 403 | ||||||||||||||||||||||||||||||||||||||||
Balance at 3/31/2021 | $ | 28,442 | $ | 2,927 | $ | 3,332 | $ | 13,943 | $ | 59,351 | $ | 43,121 | $ | 151,116 | |||||||||||||||||||||||||||||||||
Average AUM(1) | $ | 28,205 | $ | 2,895 | $ | 3,143 | $ | 13,420 | $ | 57,934 | $ | 42,699 | $ | 148,296 | |||||||||||||||||||||||||||||||||
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 | 103 | 22 | 6 | 929 | 880 | 96 | 2,036 | ||||||||||||||||||||||||||||||||||||||||
Net new debt commitments | 255 | — | — | — | 1,407 | 557 | 2,219 | ||||||||||||||||||||||||||||||||||||||||
Capital reductions | (6) | — | — | — | (28) | (13) | (47) | ||||||||||||||||||||||||||||||||||||||||
Distributions | (15) | — | (2) | (94) | (349) | (172) | (632) | ||||||||||||||||||||||||||||||||||||||||
Redemptions | (124) | (267) | (37) | (18) | (18) | — | (464) | ||||||||||||||||||||||||||||||||||||||||
Change in fund value | (558) | (411) | (353) | (905) | (1,086) | (523) | (3,836) | ||||||||||||||||||||||||||||||||||||||||
Balance at 3/31/2020 | $ | 24,668 | $ | 2,836 | $ | 2,225 | $ | 7,483 | $ | 49,237 | $ | 26,063 | $ | 112,512 | |||||||||||||||||||||||||||||||||
Average AUM(1) | $ | 23,494 | $ | 3,164 | $ | 2,418 | $ | 7,527 | $ | 48,834 | $ | 26,091 | $ | 111,528 | |||||||||||||||||||||||||||||||||
(1) Represents the quarterly average of beginning and ending balances. |
Syndicated Loans | High Yield | Credit Opportunities | Structured Credit | U.S. Direct Lending | E.U. Direct Lending | Total Credit Group | |||||||||||||||||||||
Balance at 6/30/2017 | $ | 16,589 | $ | 4,502 | $ | 3,351 | $ | 4,511 | $ | 27,727 | $ | 10,767 | $ | 67,447 | |||||||||||||
Net new par/ equity commitments | 165 | 359 | 12 | 55 | 1,383 | 650 | 2,624 | ||||||||||||||||||||
Net new debt commitments | 1,668 | — | — | — | 935 | — | 2,603 | ||||||||||||||||||||
Distributions | (1,382 | ) | (349 | ) | (73 | ) | (54 | ) | (1,257 | ) | (197 | ) | (3,312 | ) | |||||||||||||
Change in fund value | 125 | 108 | 69 | 81 | 228 | 504 | 1,115 | ||||||||||||||||||||
Balance at 9/30/2017 | $ | 17,165 | $ | 4,620 | $ | 3,359 | $ | 4,593 | $ | 29,016 | $ | 11,724 | $ | 70,477 | |||||||||||||
Average AUM(1) | $ | 16,877 | $ | 4,561 | $ | 3,355 | $ | 4,552 | $ | 28,372 | $ | 11,246 | $ | 68,963 |
Syndicated Loans | High Yield | Credit Opportunities | Structured Credit | U.S. Direct Lending | E.U. Direct Lending | Total Credit Group | |||||||||||||||||||||
Balance at 6/30/2016 | $ | 16,928 | $ | 4,331 | $ | 3,329 | $ | 3,953 | $ | 21,938 | $ | 9,846 | $ | 60,325 | |||||||||||||
Net new par/ equity commitments | 295 | 569 | (5 | ) | 5 | 741 | 150 | 1,755 | |||||||||||||||||||
Net new debt commitments | 752 | — | — | — | 1,409 | — | 2,161 | ||||||||||||||||||||
Distributions | (1,094 | ) | (43 | ) | (18 | ) | (4 | ) | (1,607 | ) | (239 | ) | (3,005 | ) | |||||||||||||
Change in fund value | 93 | 176 | 104 | 177 | 121 | 137 | 808 | ||||||||||||||||||||
Balance at 9/30/2016 | $ | 16,974 | $ | 5,033 | $ | 3,410 | $ | 4,131 | $ | 22,602 | $ | 9,894 | $ | 62,044 | |||||||||||||
Average AUM(1) | $ | 16,951 | $ | 4,682 | $ | 3,370 | $ | 4,042 | $ | 22,270 | $ | 9,870 | $ | 61,185 |
Syndicated Loans | High Yield | Credit Opportunities | Structured 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 | 685 | 470 | (16 | ) | 224 | 4,754 | 864 | 6,981 | |||||||||||||||||||
Net new debt commitments | 2,958 | — | — | — | 1,809 | 571 | 5,338 | ||||||||||||||||||||
Distributions | (4,098 | ) | (1,115 | ) | (102 | ) | (167 | ) | (2,816 | ) | (669 | ) | (8,967 | ) | |||||||||||||
Change in fund value | 360 | 287 | 173 | 282 | 554 | 1,398 | 3,054 | ||||||||||||||||||||
Balance at 9/30/2017 | $ | 17,165 | $ | 4,620 | $ | 3,359 | $ | 4,593 | $ | 29,016 | $ | 11,724 | $ | 70,477 | |||||||||||||
Average AUM(2) | $ | 16,944 | $ | 4,698 | $ | 3,345 | $ | 4,405 | $ | 26,037 | $ | 10,477 | $ | 65,906 |
Syndicated Loans | High Yield | Credit Opportunities | Structured Credit | U.S. Direct Lending(1) | E.U. Direct Lending | Total Credit Group | |||||||||||||||||||||
Balance at 12/31/2015 | $ | 17,618 | $ | 3,303 | $ | 3,714 | $ | 3,102 | $ | 23,594 | $ | 9,055 | $ | 60,386 | |||||||||||||
Net new par/ equity commitments | 540 | 1,530 | 248 | 805 | 739 | 1,018 | 4,880 | ||||||||||||||||||||
Net new debt commitments | 1,262 | — | — | — | 2,109 | 332 | 3,703 | ||||||||||||||||||||
Distributions | (2,677 | ) | (186 | ) | (718 | ) | (53 | ) | (4,263 | ) | (713 | ) | (8,610 | ) | |||||||||||||
Change in fund value | 231 | 386 | 166 | 277 | 423 | 202 | 1,685 | ||||||||||||||||||||
Balance at 9/30/2016 | $ | 16,974 | $ | 5,033 | $ | 3,410 | $ | 4,131 | $ | 22,602 | $ | 9,894 | $ | 62,044 | |||||||||||||
Average AUM(2) | $ | 17,137 | $ | 4,027 | $ | 3,380 | $ | 3,616 | $ | 22,596 | $ | 9,498 | $ | 60,254 |
AUM: $151.1 | AUM: $112.5 |
FPAUM | AUM not yet paying fees | Non-fee paying(1) | General partner and affiliates |
($ in millions) | Syndicated Loans | High Yield | Multi-Asset Credit | Alternative Credit | U.S. Direct Lending | European Direct Lending | Total Credit Group | |||||||||||||||||||||||||||||||||||||
FPAUM Balance at 12/31/2020 | $ | 27,171 | $ | 2,861 | $ | 2,457 | $ | 6,331 | $ | 32,337 | $ | 16,860 | $ | 88,017 | ||||||||||||||||||||||||||||||
Commitments | 138 | 101 | 415 | 481 | 450 | — | 1,585 | |||||||||||||||||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | — | — | — | 618 | 902 | 3,019 | 4,539 | |||||||||||||||||||||||||||||||||||||
Capital reductions | (59) | — | (18) | — | (725) | (35) | (837) | |||||||||||||||||||||||||||||||||||||
Distributions | (10) | — | (7) | (102) | (1,054) | (149) | (1,322) | |||||||||||||||||||||||||||||||||||||
Redemptions | (88) | (82) | (78) | (235) | (32) | (131) | (646) | |||||||||||||||||||||||||||||||||||||
Change in fund value | (352) | 45 | 64 | (49) | 423 | 148 | 279 | |||||||||||||||||||||||||||||||||||||
FPAUM Balance at 3/31/2021 | $ | 26,800 | $ | 2,925 | $ | 2,833 | $ | 7,044 | $ | 32,301 | $ | 19,712 | $ | 91,615 | ||||||||||||||||||||||||||||||
Average FPAUM(1) | $ | 26,986 | $ | 2,893 | $ | 2,645 | $ | 6,688 | $ | 32,319 | $ | 18,286 | $ | 89,817 | ||||||||||||||||||||||||||||||
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 | 802 | 22 | 6 | 335 | 75 | — | 1,240 | |||||||||||||||||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | — | — | 9 | 212 | 2,490 | 1,852 | 4,563 | |||||||||||||||||||||||||||||||||||||
Capital reductions | (25) | — | (59) | — | (2) | (15) | (101) | |||||||||||||||||||||||||||||||||||||
Distributions | (15) | — | (11) | (127) | (816) | (62) | (1,031) | |||||||||||||||||||||||||||||||||||||
Redemptions | (124) | (267) | (33) | (18) | (18) | (21) | (481) | |||||||||||||||||||||||||||||||||||||
Change in fund value | (568) | (411) | (343) | (571) | (797) | (216) | (2,906) | |||||||||||||||||||||||||||||||||||||
FPAUM Balance at 3/31/2020 | $ | 24,124 | $ | 2,839 | $ | 1,713 | $ | 4,171 | $ | 28,808 | $ | 14,105 | $ | 75,760 | ||||||||||||||||||||||||||||||
Average FPAUM(1) | $ | 22,791 | $ | 3,167 | $ | 1,929 | $ | 4,256 | $ | 28,342 | $ | 13,336 | $ | 73,821 | ||||||||||||||||||||||||||||||
(1) Represents the quarterly average of beginning and ending balances. |
Syndicated Loans | High Yield | Credit Opportunities | Structured Credit | U.S. Direct Lending | E.U. Direct Lending | Total Credit Group | |||||||||||||||||||||
FPAUM Balance at 6/30/2017 | $ | 15,062 | $ | 4,503 | $ | 2,797 | $ | 3,414 | $ | 15,045 | $ | 5,688 | $ | 46,509 | |||||||||||||
Commitments | 2,022 | 321 | — | 60 | 31 | — | 2,434 | ||||||||||||||||||||
Subscriptions/deployment/increase in leverage | — | 38 | 13 | 131 | 665 | 382 | 1,229 | ||||||||||||||||||||
Redemptions/distributions/decrease in leverage | (1,336 | ) | (349 | ) | (31 | ) | (244 | ) | (279 | ) | (115 | ) | (2,354 | ) | |||||||||||||
Change in fund value | 129 | 108 | 64 | 66 | 192 | 257 | 816 | ||||||||||||||||||||
Change in fee basis | — | — | — | — | — | (12 | ) | (12 | ) | ||||||||||||||||||
FPAUM Balance at 9/30/2017 | $ | 15,877 | $ | 4,621 | $ | 2,843 | $ | 3,427 | $ | 15,654 | $ | 6,200 | $ | 48,622 | |||||||||||||
Average FPAUM(1) | $ | 15,470 | $ | 4,562 | $ | 2,820 | $ | 3,421 | $ | 15,350 | $ | 5,944 | $ | 47,567 |
Syndicated Loans | High Yield | Credit Opportunities | Structured Credit | U.S. Direct Lending | E.U. Direct Lending | Total Credit Group | |||||||||||||||||||||
FPAUM Balance at 6/30/2016 | $ | 15,934 | $ | 4,330 | $ | 2,464 | $ | 2,779 | $ | 10,445 | $ | 4,634 | $ | 40,586 | |||||||||||||
Commitments | 547 | 482 | — | — | 40 | — | 1,069 | ||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 1 | 87 | 111 | 63 | 527 | 251 | 1,040 | ||||||||||||||||||||
Redemptions/distributions/decrease in leverage | (1,030 | ) | (43 | ) | (22 | ) | (2 | ) | (184 | ) | (181 | ) | (1,462 | ) | |||||||||||||
Change in fund value | 97 | 175 | 101 | 163 | 101 | (8 | ) | 629 | |||||||||||||||||||
FPAUM Balance at 9/30/2016 | $ | 15,549 | $ | 5,031 | $ | 2,654 | $ | 3,003 | $ | 10,929 | $ | 4,696 | $ | 41,862 | |||||||||||||
Average FPAUM(1) | $ | 15,742 | $ | 4,681 | $ | 2,559 | $ | 2,891 | $ | 10,687 | $ | 4,665 | $ | 41,225 |
Syndicated Loans | High Yield | Credit Opportunities | Structured 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 | 3,545 | 418 | 4 | 140 | 112 | — | 4,219 | ||||||||||||||||||||
Subscriptions/deployment/increase in leverage | — | 52 | 55 | 278 | 1,830 | 1,296 | 3,511 | ||||||||||||||||||||
Redemptions/distributions/decrease in leverage | (3,966 | ) | (1,115 | ) | (80 | ) | (375 | ) | (890 | ) | (430 | ) | (6,856 | ) | |||||||||||||
Change in fund value | 300 | 288 | 159 | 256 | 521 | 513 | 2,037 | ||||||||||||||||||||
Change in fee basis | — | — | — | — | — | 213 | 213 | ||||||||||||||||||||
FPAUM Balance at 9/30/2017 | $ | 15,877 | $ | 4,621 | $ | 2,843 | $ | 3,427 | $ | 15,654 | $ | 6,200 | $ | 48,622 | |||||||||||||
Average FPAUM(1) | $ | 15,625 | $ | 4,699 | $ | 2,782 | $ | 3,286 | $ | 14,066 | $ | 5,426 | $ | 45,884 |
Syndicated Loans | High Yield | Credit Opportunities | Structured Credit | U.S. Direct Lending | E.U. Direct Lending | Total Credit Group | |||||||||||||||||||||
FPAUM Balance at 12/31/2015 | $ | 17,180 | $ | 3,303 | $ | 2,607 | $ | 2,559 | $ | 10,187 | $ | 4,089 | $ | 39,925 | |||||||||||||
Commitments | 789 | 1,443 | 61 | 7 | 40 | — | 2,340 | ||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 4 | 87 | 199 | 256 | 1,084 | 1,240 | 2,870 | ||||||||||||||||||||
Redemptions/distributions/decrease in leverage | (2,571 | ) | (185 | ) | (314 | ) | (66 | ) | (794 | ) | (513 | ) | (4,443 | ) | |||||||||||||
Change in fund value | 147 | 383 | 161 | 247 | 412 | (120 | ) | 1,230 | |||||||||||||||||||
Change in fee basis | — | — | (60 | ) | — | — | — | (60 | ) | ||||||||||||||||||
FPAUM Balance at 9/30/2016 | $ | 15,549 | $ | 5,031 | $ | 2,654 | $ | 3,003 | $ | 10,929 | $ | 4,696 | $ | 41,862 | |||||||||||||
Average FPAUM(1) | $ | 16,293 | $ | 4,026 | $ | 2,535 | $ | 2,724 | $ | 10,477 | $ | 4,440 | $ | 40,495 |
FPAUM: | FPAUM: |
Market value(1) | 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 | $ | 20,687 | N/A | 5.2 | N/A | 11.7 | U.S. Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||
ASIF(4) | 2018 | 1,237 | 1.2 | 1.0 | 3.2 | 2.6 | Alternative Credit | ||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2017 | |||||||||||||||||||
Returns(%)(1) | |||||||||||||||||||
Year of | AUM | Current Quarter | Year-To-Date | Since Inception(2) | Primary Investment Strategy | ||||||||||||||
Fund | Inception | (in millions) | Gross | Net | Gross | Net | Gross | Net | |||||||||||
ARCC(3) | 2004 | $ | 14,479 | N/A | 1.9 | N/A | 7.3 | N/A | 11.7 | U.S. Direct Lending | |||||||||
Sub-advised Client A(4) | 2007 | 733 | 3.0 | 2.9 | 7.5 | 7.3 | 8.1 | 7.7 | High Yield | ||||||||||
ELIS XI(4) | 2013 | 726 | 1.4 | 1.3 | 3.8 | 3.4 | 3.6 | 3.1 | Syndicated Loans | ||||||||||
Separately Managed Account Client A(4) | 2015 | 1,138 | 1.9 | 1.8 | 8.6 | 8.2 | 6.8 | 6.4 | Structured Credit | ||||||||||
Separately Managed Account Client B(4) | 2016 | 825 | 1.7 | 1.6 | 6.3 | 6.0 | 7.4 | 7.0 | 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 quarter, year-to-date, and since inception returns (gross / net) for the pound sterling hedged Cayman feeder, the fund's sole feeder, are as follows: 1.8% / 1.7%, 1.8% / 1.7%, 1.9% / 1.3%, respectively. |
($ 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 | $ | 5,175 | $ | 2,822 | $ | 2,563 | $ | 751 | $ | 2,634 | $ | 3,385 | 1.4x | 1.3x | 11.5 | 8.2 | European Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Deploying Capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PCS | 2017 | 3,957 | 3,365 | 2,381 | 862 | 2,118 | 2,980 | 1.3x | 1.2x | 13.1 | 9.3 | U.S. Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACE IV Unlevered(8) | 2018 | 10,766 | 2,851 | 2,345 | 162 | 2,411 | 2,573 | 1.1x | 1.1x | 9.0 | 6.3 | European Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACE IV Levered(8) | 4,819 | 3,897 | 373 | 4,114 | 4,487 | 1.2x | 1.1x | 13.2 | 9.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SDL Unlevered | 2018 | 5,154 | 922 | 602 | 101 | 548 | 649 | 1.1x | 1.1x | 9.8 | 7.2 | U.S. Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SDL Levered | 2,045 | 1,336 | 320 | 1,210 | 1,530 | 1.2x | 1.1x | 19.0 | 13.7 |
As of September 30, 2017 (Dollars in millions) | |||||||||||||||||||||||||||||||||||
Year of Inception | AUM | Original Capital Commitments | Cumulative Invested Capital | Realized Proceeds(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | Primary Investment Strategy | ||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | |||||||||||||||||||||||||||||||
ACE II(7) | 2013 | $ | 1,492 | $ | 1,216 | $ | 972 | $ | 390 | $ | 843 | $ | 1,233 | 1.3x | 1.2x | 10.3 | 7.5 | E.U. Direct Lending | |||||||||||||||||
ACE III(8) | 2015 | 5,070 | 2,822 | 1,686 | 74 | 1,810 | 1,884 | 1.2x | 1.1x | 18.5 | 13.7 | 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 generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facilities. (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 generally 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 generally 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 generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. 69 (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 |
Three Months Ended | Favorable (Unfavorable) | Nine Months Ended | Favorable (Unfavorable) | ||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2017 | 2016 | $ Change | % Change | 2017 | 2016 | $ Change | % Change | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Management fees | $ | 51,313 | $ | 35,183 | $ | 16,130 | 46 | % | $ | 147,559 | $ | 111,100 | $ | 36,459 | 33 | % | |||||||||||||
Other fees | 449 | 309 | 140 | 45 | % | 1,127 | 983 | 144 | 15 | % | |||||||||||||||||||
Compensation and benefits | (19,256 | ) | (16,697 | ) | (2,559 | ) | (15 | )% | (50,862 | ) | (46,556 | ) | (4,306 | ) | (9 | )% | |||||||||||||
General, administrative and other expenses | (4,655 | ) | (3,925 | ) | (730 | ) | (19 | )% | (13,198 | ) | (10,489 | ) | (2,709 | ) | (26 | )% | |||||||||||||
Fee Related Earnings | 27,851 | 14,870 | 12,981 | 87 | % | 84,626 | 55,038 | 29,588 | 54 | % | |||||||||||||||||||
Performance fees-realized | 173,304 | 108,245 | 65,059 | 60 | % | 238,084 | 171,024 | 67,060 | 39 | % | |||||||||||||||||||
Performance fees-unrealized | (142,822 | ) | 16,569 | (159,391 | ) | NM | 118,162 | 109,848 | 8,314 | 8 | % | ||||||||||||||||||
Performance fee compensation-realized | (138,657 | ) | (86,537 | ) | (52,120 | ) | (60 | )% | (189,571 | ) | (136,761 | ) | (52,810 | ) | (39 | )% | |||||||||||||
Performance fee compensation-unrealized | 114,395 | (13,387 | ) | 127,782 | NM | (95,131 | ) | (88,766 | ) | (6,365 | ) | (7 | )% | ||||||||||||||||
Net performance fees | 6,220 | 24,890 | (18,670 | ) | (75 | )% | 71,544 | 55,345 | 16,199 | 29 | % | ||||||||||||||||||
Investment income-realized | 14,268 | 11,267 | 3,001 | 27 | % | 17,564 | 14,641 | 2,923 | 20 | % | |||||||||||||||||||
Investment income (loss)-unrealized | (8,421 | ) | 7,066 | (15,487 | ) | NM | 25,479 | (1,030 | ) | 26,509 | NM | ||||||||||||||||||
Interest and other investment income | 1,129 | 417 | 712 | 171 | % | 3,264 | 8,532 | (5,268 | ) | (62 | )% | ||||||||||||||||||
Interest expense | (1,229 | ) | (1,399 | ) | 170 | 12 | % | (4,139 | ) | (4,201 | ) | 62 | 1 | % | |||||||||||||||
Net investment income | 5,747 | 17,351 | (11,604 | ) | (67 | )% | 42,168 | 17,942 | 24,226 | 135 | % | ||||||||||||||||||
Performance related earnings | 11,967 | 42,241 | (30,274 | ) | (72 | )% | 113,712 | 73,287 | 40,425 | 55 | % | ||||||||||||||||||
Economic net income | $ | 39,818 | $ | 57,111 | (17,293 | ) | (30 | )% | $ | 198,338 | $ | 128,325 | 70,013 | 55 | % | ||||||||||||||
Distributable earnings | $ | 75,809 | $ | 45,481 | 30,328 | 67 | % | $ | 145,696 | $ | 104,162 | 41,534 | 40 | % |
As of September 30, | As of December 31, | ||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
ACOF III | $ | 529,723 | $ | 342,958 | |||
ACOF IV | 184,220 | 234,207 | |||||
EIF V | 15,469 | 16,510 | |||||
Other funds | 12,599 | 30,174 | |||||
Total Private Equity Group | $ | 742,011 | $ | 623,849 |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | ||||||||||||||||||||||
Realized | Unrealized | Net | Realized | Unrealized | Net | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
ACOF III | $ | 15,588 | $ | 3,239 | $ | 18,827 | $ | 39,993 | $ | (15,550 | ) | $ | 24,443 | ||||||||||
ACOF IV | 157,716 | (146,013 | ) | 11,703 | 41,807 | 43,793 | 85,600 | ||||||||||||||||
EIF V | — | 1,399 | 1,399 | — | — | — | |||||||||||||||||
Other funds | — | (1,447 | ) | (1,447 | ) | 26,445 | (11,674 | ) | 14,771 | ||||||||||||||
Total Private Equity Group | $ | 173,304 | $ | (142,822 | ) | $ | 30,482 | $ | 108,245 | $ | 16,569 | $ | 124,814 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||||
Realized | Unrealized | Net | Realized | Unrealized | Net | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
ACOF III | $ | 19,851 | $ | 186,765 | $ | 206,616 | $ | 102,078 | $ | (8,205 | ) | $ | 93,873 | ||||||||||
ACOF IV | 213,569 | (49,987 | ) | 163,582 | 41,807 | 127,738 | 169,545 | ||||||||||||||||
EIF V | — | (1,040 | ) | (1,040 | ) | — | — | — | |||||||||||||||
Other funds | 4,664 | (17,576 | ) | (12,912 | ) | 27,139 | (9,685 | ) | 17,454 | ||||||||||||||
Total Private Equity Group | $ | 238,084 | $ | 118,162 | $ | 356,246 | $ | 171,024 | $ | 109,848 | $ | 280,872 |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | ||||||||||||||||||||||||||||||
Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
ACOF III | $ | (15,588 | ) | $ | 18,827 | $ | — | $ | 3,239 | $ | (39,993 | ) | $ | 24,443 | $ | — | $ | (15,550 | ) | ||||||||||||
ACOF IV | (157,716 | ) | 11,703 | — | (146,013 | ) | (41,807 | ) | 85,600 | — | 43,793 | ||||||||||||||||||||
EIF V | — | 1,399 | — | 1,399 | — | — | — | — | |||||||||||||||||||||||
Other funds | — | 11 | (1,458 | ) | (1,447 | ) | (26,445 | ) | 14,771 | — | (11,674 | ) | |||||||||||||||||||
Total Private Equity Group | $ | (173,304 | ) | $ | 31,940 | $ | (1,458 | ) | $ | (142,822 | ) | $ | (108,245 | ) | $ | 124,814 | $ | — | $ | 16,569 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||||||||
Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
ACOF III | $ | (19,851 | ) | $ | 206,616 | $ | — | $ | 186,765 | $ | (102,078 | ) | $ | 93,873 | $ | — | $ | (8,205 | ) | ||||||||||||
ACOF IV | (213,569 | ) | 163,582 | — | (49,987 | ) | (41,807 | ) | 169,545 | — | 127,738 | ||||||||||||||||||||
EIF V | — | — | (1,040 | ) | (1,040 | ) | — | — | — | — | |||||||||||||||||||||
Other funds | (4,664 | ) | 1,013 | (13,925 | ) | (17,576 | ) | (27,139 | ) | 20,334 | (2,880 | ) | (9,685 | ) | |||||||||||||||||
Total Private Equity Group | $ | (238,084 | ) | $ | 371,211 | $ | (14,965 | ) | $ | 118,162 | $ | (171,024 | ) | $ | 283,752 | $ | (2,880 | ) | $ | 109,848 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Management fees | $ | 49,331 | $ | 52,157 | $ | (2,826) | (5) | % | |||||||||||||||||||||||||||||||||||||||
Other fees | 108 | 110 | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | (20,685) | (19,596) | (1,089) | (6) | |||||||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (4,868) | (5,633) | 765 | 14 | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 23,886 | $ | 27,038 | (3,152) | (12) |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 23,886 | $ | 27,038 | $ | (3,152) | (12) | % | |||||||||||||||||||||||||||||||||||||||
Performance income-—realized | 71,218 | 116,154 | (44,936) | (39) | |||||||||||||||||||||||||||||||||||||||||||
Performance related compensation—realized | (57,026) | (92,924) | 35,898 | 39 | |||||||||||||||||||||||||||||||||||||||||||
Realized net performance income | 14,192 | 23,230 | (9,038) | (39) | |||||||||||||||||||||||||||||||||||||||||||
Investment income (loss)—realized | (7,170) | 11,470 | (18,640) | NM | |||||||||||||||||||||||||||||||||||||||||||
Interest and other investment income—realized | 444 | 812 | (368) | (45) | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (1,663) | (1,643) | (20) | (1) | |||||||||||||||||||||||||||||||||||||||||||
Realized net investment income (loss) | (8,389) | 10,639 | (19,028) | NM | |||||||||||||||||||||||||||||||||||||||||||
Realized Income | $ | 29,689 | $ | 60,907 | (31,218) | (51) |
As of March 31, 2021 | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||
($ in thousands) | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | |||||||||||||||||||||||||||||
ACOF III | $ | 63,609 | $ | 50,888 | $ | 12,721 | $ | 55,022 | $ | 44,018 | $ | 11,004 | |||||||||||||||||||||||
ACOF IV | 386,377 | 309,102 | 77,275 | 345,748 | 276,598 | 69,150 | |||||||||||||||||||||||||||||
Sixth flagship corporate private equity fund | 21,057 | 16,845 | 4,212 | 2,624 | 2,099 | 525 | |||||||||||||||||||||||||||||
ASOF | 156,627 | 109,639 | 46,988 | 113,313 | 79,319 | 33,994 | |||||||||||||||||||||||||||||
EIF V | 59,277 | 44,310 | 14,967 | 54,086 | 40,429 | 13,657 | |||||||||||||||||||||||||||||
Other funds | 1,652 | 1,652 | — | 175 | 175 | — | |||||||||||||||||||||||||||||
Total Private Equity Group | $ | 688,599 | $ | 532,436 | $ | 156,163 | $ | 570,968 | $ | 442,638 | $ | 128,330 |
As of December 31, 2020 | Activity during the period | As of March 31, 2021 | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | Fee Type | Accrued Performance Income | Change in Unrealized | Realized | Accrued Performance Income | ||||||||||||||||||||||||||||||||||||
ACOF III | American | $ | 55,022 | $ | 14,613 | $ | (6,026) | $ | 63,609 | ||||||||||||||||||||||||||||||||
ACOF IV | American | 345,748 | 105,821 | (65,192) | 386,377 | ||||||||||||||||||||||||||||||||||||
Sixth flagship corporate private equity fund | American | 2,624 | 18,433 | — | 21,057 | ||||||||||||||||||||||||||||||||||||
ASOF | European | 113,313 | 43,314 | — | 156,627 | ||||||||||||||||||||||||||||||||||||
EIF V | European | 54,086 | 5,191 | — | 59,277 | ||||||||||||||||||||||||||||||||||||
Other funds | American | 175 | 1,477 | — | 1,652 | ||||||||||||||||||||||||||||||||||||
Total Private Equity Group | $ | 570,968 | $ | 188,849 | $ | (71,218) | $ | 688,599 |
($ in millions) | Corporate Private Equity | Infrastructure & Power | Special Opportunities | Total Private Equity Group | ||||||||||||||||||||||
Balance at 12/31/2020 | $ | 18,233 | $ | 3,485 | $ | 5,721 | $ | 27,439 | ||||||||||||||||||
Net new par/equity commitments | 29 | — | (50) | (21) | ||||||||||||||||||||||
Capital reductions | (2) | — | — | (2) | ||||||||||||||||||||||
Distributions | (582) | (52) | — | (634) | ||||||||||||||||||||||
Change in fund value | 1,705 | 213 | 319 | 2,237 | ||||||||||||||||||||||
Balance at 3/31/2021 | $ | 19,383 | $ | 3,646 | $ | 5,990 | $ | 29,019 | ||||||||||||||||||
Average AUM(1) | $ | 18,808 | $ | 3,566 | $ | 5,856 | $ | 28,230 | ||||||||||||||||||
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 | — | — | 364 | 364 | ||||||||||||||||||||||
Capital reductions | — | — | (25) | (25) | ||||||||||||||||||||||
Distributions | (1,836) | — | (2) | (1,838) | ||||||||||||||||||||||
Change in fund value | (1,499) | (6) | (147) | (1,652) | ||||||||||||||||||||||
Balance at 3/31/2020 | $ | 15,071 | $ | 3,227 | $ | 3,717 | $ | 22,015 | ||||||||||||||||||
Average AUM(1) | $ | 16,739 | $ | 3,230 | $ | 3,622 | $ | 23,591 | ||||||||||||||||||
(1) Represents the quarterly average of beginning and ending balances. |
Corporate Private Equity | Private Equity - EIF | Special Situations | Total Private Equity Group | ||||||||||||
Balance at 6/30/2017 | $ | 19,470 | $ | 4,726 | $ | 1,574 | $ | 25,770 | |||||||
Distributions | (1,299 | ) | (46 | ) | (28 | ) | (1,373 | ) | |||||||
Change in fund value | 211 | (60 | ) | 27 | 178 | ||||||||||
Balance at 9/30/2017 | $ | 18,382 | $ | 4,620 | $ | 1,573 | $ | 24,575 | |||||||
Average AUM(1) | $ | 18,926 | $ | 4,673 | $ | 1,574 | $ | 25,173 |
Corporate Private Equity | Private Equity - EIF | Special Situations | Total Private Equity Group | ||||||||||||
Balance at 6/30/2016 | $ | 18,078 | $ | 4,959 | $ | 1,777 | $ | 24,814 | |||||||
Net new equity commitments | — | 10 | — | 10 | |||||||||||
Distributions | (754 | ) | (55 | ) | (32 | ) | (841 | ) | |||||||
Change in fund value | 632 | 166 | 95 | 893 | |||||||||||
Balance at 9/30/2016 | $ | 17,956 | $ | 5,080 | $ | 1,840 | $ | 24,876 | |||||||
Average AUM(1) | $ | 18,017 | $ | 5,020 | $ | 1,809 | $ | 24,846 |
Corporate Private Equity | Private Equity - EIF | Special Situations | Total Private Equity Group | ||||||||||||
Balance at 12/31/2016 | $ | 18,162 | $ | 5,143 | $ | 1,736 | $ | 25,041 | |||||||
Net new equity commitments | 23 | 300 | — | 323 | |||||||||||
Distributions | (1,852 | ) | (655 | ) | (169 | ) | (2,676 | ) | |||||||
Change in fund value | 2,049 | (168 | ) | 6 | 1,887 | ||||||||||
Balance at 9/30/2017 | $ | 18,382 | $ | 4,620 | $ | 1,573 | $ | 24,575 | |||||||
Average AUM(2) | $ | 18,600 | $ | 4,766 | $ | 1,645 | $ | 25,011 |
Corporate Private Equity(1) | Private Equity - EIF | Special Situations | Total Private Equity Group | ||||||||||||
Balance at 12/31/2015 | $ | 15,908 | $ | 5,207 | $ | 1,863 | $ | 22,978 | |||||||
Net new equity commitments | 2,154 | 10 | — | 2,164 | |||||||||||
Distributions | (1,401 | ) | (231 | ) | (108 | ) | (1,740 | ) | |||||||
Change in fund value | 1,295 | 94 | 85 | 1,474 | |||||||||||
Balance at 9/30/2016 | $ | 17,956 | $ | 5,080 | $ | 1,840 | $ | 24,876 | |||||||
Average AUM(2) | $ | 17,524 | $ | 5,092 | $ | 1,816 | $ | 24,432 |
AUM: $22.0 |
AUM not yet paying fees | Non fee paying | General partner and |
($ in millions) | Corporate Private Equity | Infrastructure & Power | Special Opportunities | Total Private Equity Group | ||||||||||||||||||||||
FPAUM Balance at 12/31/2020 | $ | 14,770 | $ | 3,679 | $ | 2,723 | $ | 21,172 | ||||||||||||||||||
Commitments | 79 | — | — | 79 | ||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 108 | — | 484 | 592 | ||||||||||||||||||||||
Distributions | (410) | — | (166) | (576) | ||||||||||||||||||||||
Change in fund value | (1) | — | — | (1) | ||||||||||||||||||||||
Change in fee basis | (2,739) | — | — | (2,739) | ||||||||||||||||||||||
FPAUM Balance at 3/31/2021 | $ | 11,807 | $ | 3,679 | $ | 3,041 | $ | 18,527 | ||||||||||||||||||
Average FPAUM(1) | $ | 13,289 | $ | 3,679 | $ | 2,882 | $ | 19,850 | ||||||||||||||||||
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 | ||||||||||||||||||
Subscriptions/deployment/increase in leverage | 19 | — | 333 | 352 | ||||||||||||||||||||||
Distributions | (229) | — | (138) | (367) | ||||||||||||||||||||||
Change in fund value | (5) | — | — | (5) | ||||||||||||||||||||||
FPAUM Balance at 3/31/2020 | $ | 11,753 | $ | 3,352 | $ | 1,915 | $ | 17,020 | ||||||||||||||||||
Average FPAUM(1) | $ | 11,861 | $ | 3,352 | $ | 1,818 | $ | 17,031 | ||||||||||||||||||
(1) Represents the quarterly average of beginning and ending balances. |
Corporate Private Equity | Private Equity - EIF | Special Situations | Total Private Equity Group | ||||||||||||
FPAUM Balance at 6/30/2017 | $ | 12,437 | $ | 4,081 | $ | 774 | $ | 17,292 | |||||||
Subscriptions/deployment/increase in leverage | 40 | 28 | 18 | 86 | |||||||||||
Redemptions/distributions/decrease in leverage | (352 | ) | (8 | ) | (142 | ) | (502 | ) | |||||||
Change in fund value | — | (61 | ) | (6 | ) | (67 | ) | ||||||||
Change in fee basis | (25 | ) | — | — | (25 | ) | |||||||||
FPAUM Balance at 9/30/2017 | $ | 12,100 | $ | 4,040 | $ | 644 | $ | 16,784 | |||||||
Average FPAUM(1) | $ | 12,269 | $ | 4,061 | $ | 709 | $ | 17,039 |
Corporate Private Equity | Private Equity - EIF | Special Situations | Total Private Equity Group | ||||||||||||
FPAUM Balance at 6/30/2016 | $ | 6,678 | $ | 4,331 | $ | 844 | $ | 11,853 | |||||||
Commitments | — | 10 | — | 10 | |||||||||||
Subscriptions/deployment/increase in leverage | 34 | 7 | — | 41 | |||||||||||
Redemptions/distributions/decrease in leverage | (226 | ) | — | (49 | ) | (275 | ) | ||||||||
Change in fee basis | — | (264 | ) | — | (264 | ) | |||||||||
FPAUM Balance at 9/30/2016 | $ | 6,486 | $ | 4,084 | $ | 795 | $ | 11,365 | |||||||
Average FPAUM(1) | $ | 6,582 | $ | 4,208 | $ | 820 | $ | 11,610 |
Corporate Private Equity | Private Equity - EIF | Special Situations | Total Private Equity Group | ||||||||||||
FPAUM Balance at 12/31/2016 | $ | 6,454 | $ | 4,232 | $ | 628 | $ | 11,314 | |||||||
Commitments | 7,622 | 300 | — | 7,922 | |||||||||||
Subscriptions/deployment/increase in leverage | 449 | 197 | 277 | 923 | |||||||||||
Redemptions/distributions/decrease in leverage | (873 | ) | (340 | ) | (207 | ) | (1,420 | ) | |||||||
Change in fund value | — | (349 | ) | (54 | ) | (403 | ) | ||||||||
Change in fee basis | (1,552 | ) | — | — | (1,552 | ) | |||||||||
FPAUM Balance at 9/30/2017 | $ | 12,100 | $ | 4,040 | $ | 644 | $ | 16,784 | |||||||
Average FPAUM(1) | $ | 10,928 | $ | 4,055 | $ | 661 | $ | 15,644 |
Corporate Private Equity | Private Equity - EIF | Special Situations | Total Private Equity Group | ||||||||||||
FPAUM Balance at 12/31/2015 | $ | 6,957 | $ | 4,454 | $ | 1,051 | $ | 12,462 | |||||||
Commitments | — | 10 | — | 10 | |||||||||||
Subscriptions/deployment/increase in leverage | 50 | 17 | (4 | ) | 63 | ||||||||||
Redemptions/distributions/decrease in leverage | (226 | ) | (46 | ) | (164 | ) | (436 | ) | |||||||
Change in fund value | — | (80 | ) | (88 | ) | (168 | ) | ||||||||
Change in fee basis | (295 | ) | (271 | ) | — | (566 | ) | ||||||||
FPAUM Balance at 9/30/2016 | $ | 6,486 | $ | 4,084 | $ | 795 | $ | 11,365 | |||||||
Average FPAUM(1) | $ | 6,702 | $ | 4,325 | $ | 896 | $ | 11,923 |
FPAUM: | FPAUM: |
Capital commitments |
($ 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 | $ | 1,230 | $ | 1,688 | $ | 2,121 | $ | 1,403 | $ | 1,220 | $ | 2,623 | 1.2x | 1.1x | 5.4 | 1.7 | Infrastructure and Power | |||||||||||||||||||||||||||||||||||||||||||||||||||||
ACOF IV | 2012 | 4,107 | 4,700 | 4,251 | 6,635 | 3,401 | 10,036 | 2.4x | 2.0x | 21.7 | 15.4 | Corporate Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Deploying Capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACOF V | 2017 | 8,405 | 7,850 | 6,896 | 995 | 7,209 | 8,204 | 1.2x | 1.1x | 8.2 | 4.8 | Corporate Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AEOF | 2018 | 730 | 1,120 | 965 | 73 | 576 | 649 | 0.7x | 0.6x | (20.1) | (28.3) | Corporate Private Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASOF | 2019 | 4,305 | 3,518 | 3,138 | 1,395 | 2,599 | 3,994 | 1.5x | 1.4x | 64.8 | 48.9 | Special Opportunities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sixth flagship corporate private equity fund | 2020 | 4,329 | 4,218 | 1,402 | 24 | 1,525 | 1,549 | 1.1x | 1.1x | N/A | N/A | Corporate Private Equity |
As of September 30, 2017 (Dollars in millions) | |||||||||||||||||||||||||||||||||||
Year of Inception | AUM | Original Capital Commitments | Cumulative Invested Capital | Realized Proceeds(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | Primary Investment Strategy | ||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | |||||||||||||||||||||||||||||||
USPF III | 2007 | $ | 906 | $ | 1,350 | $ | 1,808 | $ | 1,753 | $ | 860 | $ | 2,613 | 1.5x | 1.4x | 8.1 | 5.5 | U.S. Power and Energy Infrastructure | |||||||||||||||||
ACOF III | 2008 | 4,340 | 3,510 | 3,867 | 5,952 | 4,021 | 9,973 | 2.6x | 2.2x | 31.1 | 23.1 | Corporate Private Equity | |||||||||||||||||||||||
USPF IV | 2010 | 1,873 | 1,688 | 1,815 | 749 | 1,677 | 2,426 | 1.3x | 1.2x | 10.8 | 7.3 | U.S. Power and Energy Infrastructure | |||||||||||||||||||||||
ACOF IV | 2012 | 5,342 | 4,700 | 3,806 | 2,438 | 4,119 | 6,557 | 1.7x | 1.6x | 23.7 | 16.0 | Corporate Private Equity | |||||||||||||||||||||||
ACOF V | 2017 | 8,006 | 7,850 | 971 | 12 | 1,004 | 1,016 | 1.0x | 0.9x | N/A | N/A | Corporate Private Equity | |||||||||||||||||||||||
EIF V(7) | 2015 | 884 | 801 | 290 | 76 | 339 | 415 | 1.4x | 1.6x | N/A | N/A | U.S. Power and Energy Infrastructure |
(1)Realized value represents the sum of all cash dividends, interest income, other fees and cash proceeds from realizations of interests in portfolio investments. Realized value excludes any proceeds related to bridge financings. (2)Unrealized value represents the fair market value of remaining investments. Unrealized value does not take into account any bridge financings. There can be no assurance that unrealized investments will be realized at the valuations indicated. (3)For the corporate private equity and infrastructure and power funds, the gross MoIC is calculated at the investment-level and is based on the interests of all partners. The gross MoIC is before giving effect to management fees, carried interest, as applicable, and other expenses. For the special opportunities funds, the gross 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 as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The gross MoICs for the corporate private equity and special opportunities funds are also calculated before giving effect to any bridge financings. Inclusive of bridge financings, the gross MoIC would be 2.2x for ACOF IV, 1.2x for ACOF V, "N/A" for the sixth flagship corporate private equity fund, 0.7x for AEOF and 1.4x for ASOF. The funds may utilize a credit facility |
Three Months Ended | Favorable (Unfavorable) | Nine Months Ended | Favorable (Unfavorable) | ||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2017 | 2016 | $ Change | % Change | 2017 | 2016 | $ Change | % Change | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Management fees | $ | 17,137 | $ | 17,819 | $ | (682 | ) | (4 | )% | $ | 49,231 | $ | 50,794 | $ | (1,563 | ) | (3 | )% | |||||||||||
Other fees | 27 | 162 | (135 | ) | (83 | )% | 37 | 855 | (818 | ) | (96 | )% | |||||||||||||||||
Compensation and benefits | (11,398 | ) | (9,459 | ) | (1,939 | ) | (20 | )% | (30,848 | ) | (31,327 | ) | 479 | 2 | % | ||||||||||||||
General, administrative and other expenses | (2,125 | ) | (2,289 | ) | 164 | 7 | % | (7,947 | ) | (8,241 | ) | 294 | 4 | % | |||||||||||||||
Fee Related Earnings | 3,641 | 6,233 | (2,592 | ) | (42 | )% | 10,473 | 12,081 | (1,608 | ) | (13 | )% | |||||||||||||||||
Performance fees-realized | 2,389 | 2,170 | 219 | 10 | % | 3,883 | 5,142 | (1,259 | ) | (24 | )% | ||||||||||||||||||
Performance fees-unrealized | 20,366 | 4,647 | 15,719 | NM | 64,243 | 10,030 | 54,213 | NM | |||||||||||||||||||||
Performance fee compensation-realized | (856 | ) | — | (856 | ) | NM | (1,033 | ) | (53 | ) | (980 | ) | NM | ||||||||||||||||
Performance fee compensation-unrealized | (12,233 | ) | (4,322 | ) | (7,911 | ) | (183 | )% | (39,303 | ) | (8,328 | ) | (30,975 | ) | NM | ||||||||||||||
Net performance fees | 9,666 | 2,495 | 7,171 | 287 | % | 27,790 | 6,791 | 20,999 | NM | ||||||||||||||||||||
Investment income (loss)-realized | 1,997 | (151 | ) | 2,148 | NM | 4,153 | 412 | 3,741 | NM | ||||||||||||||||||||
Investment income (loss)-unrealized | (767 | ) | 6,211 | (6,978 | ) | NM | (77 | ) | 7,943 | (8,020 | ) | NM | |||||||||||||||||
Interest and other investment income | 716 | 714 | 2 | < 1% | 2,069 | 1,642 | 427 | 26 | % | ||||||||||||||||||||
Interest expense | (396 | ) | (242 | ) | (154 | ) | (64 | )% | (1,257 | ) | (788 | ) | (469 | ) | (60 | )% | |||||||||||||
Net investment income | 1,550 | 6,532 | (4,982 | ) | (76 | )% | 4,888 | 9,209 | (4,321 | ) | (47 | )% | |||||||||||||||||
Performance related earnings | 11,216 | 9,027 | 2,189 | 24 | % | 32,678 | 16,000 | 16,678 | 104 | % | |||||||||||||||||||
Economic net income | $ | 14,857 | $ | 15,260 | (403 | ) | (3 | )% | $ | 43,151 | $ | 28,081 | 15,070 | 54 | % | ||||||||||||||
Distributable earnings | $ | 4,736 | $ | 6,408 | (1,672 | ) | (26 | )% | $ | 12,596 | $ | 16,867 | (4,271 | ) | (25 | )% |
As of September 30, | As of December 31, | ||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
US VIII | $ | 27,528 | $ | 12,575 | |||
EF IV | 40,200 | 4,052 | |||||
Other real estate funds | 37,403 | 22,001 | |||||
Subtotal | 105,131 | 38,628 | |||||
Other fee generating funds(1) | 15,518 | 16,675 | |||||
Total Real Estate Group | $ | 120,649 | $ | 55,303 |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | ||||||||||||||||||||||
Realized | Unrealized | Net | Realized | Unrealized | Net | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
US VIII | $ | — | $ | 6,819 | $ | 6,819 | $ | — | $ | (96 | ) | $ | (96 | ) | |||||||||
EF IV | — | 8,094 | 8,094 | — | — | — | |||||||||||||||||
Other real estate funds | 1,408 | 5,248 | 6,656 | — | 6,989 | 6,989 | |||||||||||||||||
Subtotal | 1,408 | 20,161 | 21,569 | — | 6,893 | 6,893 | |||||||||||||||||
Other fee generating funds(1) | 981 | 205 | 1,186 | 2,170 | (2,246 | ) | (76 | ) | |||||||||||||||
Total Real Estate Group | $ | 2,389 | $ | 20,366 | $ | 22,755 | $ | 2,170 | $ | 4,647 | $ | 6,817 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||||
Realized | Unrealized | Net | Realized | Unrealized | Net | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
US VIII | $ | — | $ | 14,953 | $ | 14,953 | $ | — | $ | 2,279 | $ | 2,279 | |||||||||||
EF IV | — | 36,149 | 36,149 | — | — | — | |||||||||||||||||
Other real estate funds | 1,702 | 13,895 | 15,597 | 89 | 11,291 | 11,380 | |||||||||||||||||
Subtotal | 1,702 | 64,997 | 66,699 | 89 | 13,570 | 13,659 | |||||||||||||||||
Other fee generating funds(1) | 2,181 | (754 | ) | 1,427 | 5,053 | (3,540 | ) | 1,513 | |||||||||||||||
Total Real Estate Group | $ | 3,883 | $ | 64,243 | $ | 68,126 | $ | 5,142 | $ | 10,030 | $ | 15,172 |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | ||||||||||||||||||||||||||||||
Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
US VIII | $ | — | $ | 6,819 | $ | — | $ | 6,819 | $ | — | $ | — | $ | (96 | ) | $ | (96 | ) | |||||||||||||
EF IV | — | 8,094 | — | 8,094 | — | — | — | — | |||||||||||||||||||||||
Other real estate funds | (1,408 | ) | 6,887 | (231 | ) | 5,248 | — | 7,942 | (953 | ) | 6,989 | ||||||||||||||||||||
Subtotal | (1,408 | ) | 21,800 | (231 | ) | 20,161 | — | 7,942 | (1,049 | ) | 6,893 | ||||||||||||||||||||
Other fee generating funds(1) | (981 | ) | 1,186 | — | 205 | (2,170 | ) | 640 | (716 | ) | (2,246 | ) | |||||||||||||||||||
Total Real Estate Group | $ | (2,389 | ) | $ | 22,986 | $ | (231 | ) | $ | 20,366 | $ | (2,170 | ) | $ | 8,582 | $ | (1,765 | ) | $ | 4,647 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||||||||
Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | Performance Fees - Realized | Increases | Decreases | Performance Fees - Unrealized | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
US VIII | $ | — | $ | 14,953 | $ | — | $ | 14,953 | $ | — | $ | 2,279 | $ | — | $ | 2,279 | |||||||||||||||
EF IV | — | 36,149 | — | 36,149 | — | — | — | — | |||||||||||||||||||||||
Other real estate funds | (1,702 | ) | 16,137 | (540 | ) | 13,895 | (89 | ) | 12,629 | (1,249 | ) | 11,291 | |||||||||||||||||||
Subtotal | (1,702 | ) | 67,239 | (540 | ) | 64,997 | (89 | ) | 14,908 | (1,249 | ) | 13,570 | |||||||||||||||||||
Other fee generating funds(1) | (2,181 | ) | 1,987 | (560 | ) | (754 | ) | (5,053 | ) | 2,950 | (1,437 | ) | (3,540 | ) | |||||||||||||||||
Total Real Estate Group | $ | (3,883 | ) | $ | 69,226 | $ | (1,100 | ) | $ | 64,243 | $ | (5,142 | ) | $ | 17,858 | $ | (2,686 | ) | $ | 10,030 |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
Balance at 6/30/2017 | $ | 4,659 | $ | 3,143 | $ | 2,990 | $ | 10,792 | |||||||
Net new equity commitments | 246 | — | — | 246 | |||||||||||
Distributions | (197 | ) | (437 | ) | (8 | ) | (642 | ) | |||||||
Change in fund value | 107 | 79 | 11 | 197 | |||||||||||
Balance at 9/30/2017 | $ | 4,815 | $ | 2,785 | $ | 2,993 | $ | 10,593 | |||||||
Average AUM(1) | $ | 4,737 | $ | 2,964 | $ | 2,992 | $ | 10,693 |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
Balance at 6/30/2016 | $ | 4,545 | $ | 3,095 | $ | 2,484 | $ | 10,124 | |||||||
Net new equity commitments | 17 | 256 | — | 273 | |||||||||||
Net new debt commitments | — | — | 125 | 125 | |||||||||||
Distributions | (208 | ) | (63 | ) | 14 | (257 | ) | ||||||||
Change in fund value | 62 | 50 | 20 | 132 | |||||||||||
Balance at 9/30/2016 | $ | 4,416 | $ | 3,338 | $ | 2,643 | $ | 10,397 | |||||||
Average AUM(1) | $ | 4,481 | $ | 3,217 | $ | 2,564 | $ | 10,262 |
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 | 767 | — | — | 767 | |||||||||||
Net new debt commitments | — | — | 509 | 509 | |||||||||||
Distributions | (290 | ) | (641 | ) | (86 | ) | (1,017 | ) | |||||||
Change in fund value | 232 | 326 | 24 | 582 | |||||||||||
Balance at 9/30/2017 | $ | 4,815 | $ | 2,785 | $ | 2,993 | $ | 10,593 | |||||||
Average AUM(1) | $ | 4,429 | $ | 3,020 | $ | 2,821 | $ | 10,270 |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
Balance at 12/31/2015 | $ | 4,616 | $ | 3,059 | $ | 2,593 | $ | 10,268 | |||||||
Net new equity commitments | 317 | 470 | — | 787 | |||||||||||
Net new debt commitments | — | — | 225 | 225 | |||||||||||
Distributions | (717 | ) | (197 | ) | (211 | ) | (1,125 | ) | |||||||
Change in fund value | 200 | 6 | 36 | 242 | |||||||||||
Balance at 9/30/2016 | $ | 4,416 | $ | 3,338 | $ | 2,643 | $ | 10,397 | |||||||
Average AUM(1) | $ | 4,529 | $ | 3,154 | $ | 2,560 | $ | 10,243 |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
FPAUM Balance at 6/30/2017 | $ | 3,003 | $ | 2,536 | $ | 1,115 | $ | 6,654 | |||||||
Commitments | 245 | — | — | 245 | |||||||||||
Subscriptions/deployment/increase in leverage | 225 | 24 | — | 249 | |||||||||||
Redemptions/distributions/decrease in leverage | (107 | ) | (77 | ) | (32 | ) | (216 | ) | |||||||
Change in fund value | 3 | 46 | 11 | 60 | |||||||||||
FPAUM Balance at 9/30/2017 | $ | 3,369 | $ | 2,529 | $ | 1,094 | $ | 6,992 | |||||||
Average FPAUM(1) | $ | 3,186 | $ | 2,533 | $ | 1,105 | $ | 6,824 |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
FPAUM Balance at 6/30/2016 | $ | 2,999 | $ | 2,503 | $ | 1,142 | $ | 6,644 | |||||||
Commitments | — | 251 | — | 251 | |||||||||||
Subscriptions/deployment/increase in leverage | 60 | — | — | 60 | |||||||||||
Redemptions/distributions/decrease in leverage | (139 | ) | (41 | ) | (32 | ) | (212 | ) | |||||||
Change in fund value | (30 | ) | 9 | 8 | (13 | ) | |||||||||
FPAUM Balance at 9/30/2016 | $ | 2,890 | $ | 2,722 | $ | 1,118 | $ | 6,730 | |||||||
Average FPAUM(1) | $ | 2,945 | $ | 2,613 | $ | 1,130 | $ | 6,688 |
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 | 635 | — | — | 635 | |||||||||||
Subscriptions/deployment/increase in leverage | 432 | 24 | 3 | 459 | |||||||||||
Redemptions/distributions/decrease in leverage | (306 | ) | (123 | ) | (58 | ) | (487 | ) | |||||||
Change in fund value | 2 | 97 | 31 | 130 | |||||||||||
Change in fee basis | (285 | ) | — | — | (285 | ) | |||||||||
FPAUM Balance at 9/30/2017 | $ | 3,369 | $ | 2,529 | $ | 1,094 | $ | 6,992 | |||||||
Average FPAUM(1) | $ | 3,005 | $ | 2,520 | $ | 1,111 | $ | 6,636 |
Real Estate Equity - U.S. | Real Estate Equity - E.U. | Real Estate Debt | Total Real Estate Group | ||||||||||||
FPAUM Balance at 12/31/2015 | $ | 3,204 | $ | 2,555 | $ | 998 | $ | 6,757 | |||||||
Commitments | 59 | 365 | — | 424 | |||||||||||
Subscriptions/deployment/increase in leverage | 137 | 48 | 141 | 326 | |||||||||||
Redemptions/distributions/decrease in leverage | (484 | ) | (69 | ) | (47 | ) | (600 | ) | |||||||
Change in fund value | (26 | ) | (54 | ) | 26 | (54 | ) | ||||||||
Change in fee basis | — | (123 | ) | — | (123 | ) | |||||||||
FPAUM Balance at 9/30/2016 | $ | 2,890 | $ | 2,722 | $ | 1,118 | $ | 6,730 | |||||||
Average FPAUM(1) | $ | 3,042 | $ | 2,593 | $ | 1,067 | $ | 6,702 |
As of September 30, 2017 (Dollars in millions) | |||||||||||||||||||||||||||||||||||
Year of Inception | AUM | Original Capital Commitments | Cumulative Invested Capital | Realized Proceeds(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | Primary Investment Strategy | ||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | |||||||||||||||||||||||||||||||
EF IV(7) | 2014 | $ | 1,040 | $ | 1,302 | $ | 985 | $ | 384 | $ | 933 | $ | 1,317 | 1.3x | 1.2x | 20.0 | 13.4 | E.U. Real Estate Equity | |||||||||||||||||
EPEP II(8) | 2015 | 704 | 747 | 255 | 113 | 200 | 313 | 1.2x | 1.2x | N/A | N/A | E.U. Real Estate Equity |
Three Months Ended | Favorable (Unfavorable) | Nine Months Ended | Favorable (Unfavorable) | ||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2017 | 2016 | $ Change | % Change | 2017 | 2016 | $ Change | % Change | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Compensation and benefits | $ | (27,577 | ) | $ | (25,960 | ) | $ | (1,617 | ) | (6 | )% | $ | (84,881 | ) | $ | (77,225 | ) | $ | (7,656 | ) | (10 | )% | |||||||
General, administrative and other expenses | (18,380 | ) | (13,386 | ) | (4,994 | ) | (37 | )% | (56,729 | ) | (44,616 | ) | (12,113 | ) | (27 | )% | |||||||||||||
Fee Related Earnings | (45,957 | ) | (39,346 | ) | (6,611 | ) | (17 | )% | (141,610 | ) | (121,841 | ) | (19,769 | ) | (16 | )% | |||||||||||||
Investment income (loss)-realized | 18 | (20,005 | ) | 20,023 | NM | 3,217 | (20,093 | ) | 23,310 | NM | |||||||||||||||||||
Investment income-unrealized | 4,357 | 15,979 | (11,622 | ) | (73 | )% | 222 | 4,460 | (4,238 | ) | (95 | )% | |||||||||||||||||
Interest and other investment income (loss) | 26 | 15 | 11 | 73 | % | 1,125 | (53 | ) | 1,178 | NM | |||||||||||||||||||
Interest expense | (441 | ) | (664 | ) | 223 | 34 | % | (1,380 | ) | (2,101 | ) | 721 | 34 | % | |||||||||||||||
Net investment income (loss) | 3,960 | (4,675 | ) | 8,635 | NM | 3,184 | (17,787 | ) | 20,971 | NM | |||||||||||||||||||
Performance related earnings | 3,960 | (4,675 | ) | 8,635 | NM | 3,184 | (17,787 | ) | 20,971 | NM | |||||||||||||||||||
Economic net income | $ | (41,997 | ) | $ | (44,021 | ) | 2,024 | 5 | % | $ | (138,426 | ) | $ | (139,628 | ) | 1,202 | 1 | % | |||||||||||
Distributable earnings | $ | (53,214 | ) | $ | (66,696 | ) | 13,482 | 20 | % | $ | (151,642 | ) | $ | (157,550 | ) | 5,908 | 4 | % |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Management fees | $ | 29,632 | $ | 24,184 | $ | 5,448 | 23 | % | |||||||||||||||||||||||||||||||||||||||
Other fees | 648 | 704 | (56) | (8) | |||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | (15,941) | (12,413) | (3,528) | (28) | |||||||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (3,295) | (2,935) | (360) | (12) | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 11,044 | $ | 9,540 | 1,504 | 16 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | 11,044 | $ | 9,540 | $ | 1,504 | 16% | ||||||||||||||||||||||||||||||||||||||||
Performance income—realized | 1,947 | 26,600 | (24,653) | (93) | |||||||||||||||||||||||||||||||||||||||||||
Performance related compensation—realized | (1,177) | (17,170) | 15,993 | 93 | |||||||||||||||||||||||||||||||||||||||||||
Realized net performance income | 770 | 9,430 | (8,660) | (92) | |||||||||||||||||||||||||||||||||||||||||||
Investment income (loss)—realized | (222) | 1,290 | (1,512) | NM | |||||||||||||||||||||||||||||||||||||||||||
Interest and other investment income—realized | 2,028 | 796 | 1,232 | 155 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (1,125) | (971) | (154) | (16) | |||||||||||||||||||||||||||||||||||||||||||
Realized net investment income | 681 | 1,115 | (434) | (39) | |||||||||||||||||||||||||||||||||||||||||||
Realized Income | $ | 12,495 | $ | 20,085 | (7,590) | (38) |
As of March 31, 2021 | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||
($ 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 | $ | 35,874 | $ | 22,241 | $ | 13,633 | $ | 26,704 | $ | 16,556 | $ | 10,148 | |||||||||||||||||||||||
EF IV | 55,944 | 33,567 | 22,377 | 55,829 | 33,498 | 22,331 | |||||||||||||||||||||||||||||
Other real estate funds | 131,260 | 83,228 | 48,032 | 119,036 | 75,062 | 43,974 | |||||||||||||||||||||||||||||
Other fee generating funds(1) | 2,841 | — | 2,841 | 2,786 | — | 2,786 | |||||||||||||||||||||||||||||
Total accrued carried interest | 225,919 | 139,036 | 86,883 | 204,355 | 125,116 | 79,239 | |||||||||||||||||||||||||||||
Incentive fees | 658 | 395 | 263 | 525 | 315 | 210 | |||||||||||||||||||||||||||||
Total Real Estate Group | $ | 226,577 | $ | 139,431 | $ | 87,146 | $ | 204,880 | $ | 125,431 | $ | 79,449 |
As of December 31, 2020 | Activity during the period | As of March 31, 2021 | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | Waterfall Type | Accrued Carried Interest | Change in Unrealized | Realized | Accrued Carried Interest | ||||||||||||||||||||||||||||||||||||
US IX | European | $ | 26,704 | $ | 9,170 | $ | — | $ | 35,874 | ||||||||||||||||||||||||||||||||
EF IV | American | 55,829 | 115 | — | 55,944 | ||||||||||||||||||||||||||||||||||||
Other real estate funds | European | 86,592 | 8,824 | — | 95,416 | ||||||||||||||||||||||||||||||||||||
Other real estate funds | American | 32,444 | 4,681 | (1,281) | 35,844 | ||||||||||||||||||||||||||||||||||||
Other fee generating funds(1) | European | 426 | — | — | 426 | ||||||||||||||||||||||||||||||||||||
Other fee generating funds(1) | American | 2,360 | 55 | — | 2,415 | ||||||||||||||||||||||||||||||||||||
Total Real Estate Group | $ | 204,355 | $ | 22,845 | $ | (1,281) | $ | 225,919 |
($ in millions) | Real Estate Equity - U.S. | Real Estate Equity - Europe | Real Estate Debt | Total Real Estate Group | ||||||||||||||||||||||
Balance at 12/31/2020 | $ | 4,404 | $ | 4,811 | $ | 5,593 | $ | 14,808 | ||||||||||||||||||
Net new par/equity commitments | 433 | 94 | 203 | 730 | ||||||||||||||||||||||
Net new debt commitments | — | — | 1,880 | 1,880 | ||||||||||||||||||||||
Capital reductions | — | — | (232) | (232) | ||||||||||||||||||||||
Distributions | (43) | (96) | (32) | (171) | ||||||||||||||||||||||
Change in fund value | 115 | (39) | 38 | 114 | ||||||||||||||||||||||
Balance at 3/31/2021 | $ | 4,909 | $ | 4,770 | $ | 7,450 | $ | 17,129 | ||||||||||||||||||
Average AUM(1) | $ | 4,657 | $ | 4,791 | $ | 6,522 | $ | 15,970 | ||||||||||||||||||
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 | 559 | 581 | 420 | 1,560 | ||||||||||||||||||||||
Net new debt commitments | — | — | 226 | 226 | ||||||||||||||||||||||
Distributions | (53) | (572) | (18) | (643) | ||||||||||||||||||||||
Change in fund value | (126) | (86) | (26) | (238) | ||||||||||||||||||||||
Balance at 3/31/2020 | $ | 4,173 | $ | 4,511 | $ | 5,428 | $ | 14,112 | ||||||||||||||||||
Average AUM(1) | $ | 3,983 | $ | 4,550 | $ | 5,127 | $ | 13,660 | ||||||||||||||||||
(1) Represents the quarterly average of beginning and ending balances. |
AUM: $17.2 | AUM: $14.1 |
FPAUM | AUM not yet paying fees | Non-fee paying | General partner and affiliates |
($ in millions) | Real Estate Equity - U.S. | Real Estate Equity - Europe | Real Estate Debt | Total Real Estate Group | ||||||||||||||||||||||
FPAUM Balance at 12/31/2020 | $ | 3,659 | $ | 4,088 | $ | 2,505 | $ | 10,252 | ||||||||||||||||||
Commitments | 301 | 94 | 101 | 496 | ||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 119 | 10 | 208 | 337 | ||||||||||||||||||||||
Capital reductions | — | — | (32) | (32) | ||||||||||||||||||||||
Distributions | (43) | (54) | (44) | (141) | ||||||||||||||||||||||
Change in fund value | — | (122) | 30 | (92) | ||||||||||||||||||||||
FPAUM Balance at 3/31/2021 | $ | 4,036 | $ | 4,016 | $ | 2,768 | $ | 10,820 | ||||||||||||||||||
Average FPAUM(1) | $ | 3,848 | $ | 4,052 | $ | 2,637 | $ | 10,537 | ||||||||||||||||||
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 | 756 | 539 | 73 | 1,368 | ||||||||||||||||||||||
Subscriptions/deployment/increase in leverage | 48 | 145 | 287 | 480 | ||||||||||||||||||||||
Capital reductions | — | (10) | (1) | (11) | ||||||||||||||||||||||
Distributions | (22) | (186) | (18) | (226) | ||||||||||||||||||||||
Change in fund value | — | (58) | 10 | (48) | ||||||||||||||||||||||
Change in fee basis | — | (311) | — | (311) | ||||||||||||||||||||||
FPAUM Balance at 3/31/2020 | $ | 3,417 | $ | 3,911 | $ | 1,887 | $ | 9,215 | ||||||||||||||||||
Average FPAUM(1) | $ | 3,026 | $ | 3,852 | $ | 1,712 | $ | 8,590 | ||||||||||||||||||
(1) Represents the quarterly average of beginning and ending balances. |
FPAUM: $10.8 | FPAUM: $9.2 |
Capital commitments | Invested capital/other(1) | Market value(2) |
($ 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 | $ | 2,141 | $ | 1,968 | $ | 1,007 | $ | 54 | $ | 1,175 | $ | 1,229 | 1.2x | 1.1x | 17.7 | 8.6 | European Real Estate Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
AREOF III | 2019 | 1,675 | 1,697 | 330 | — | 334 | 334 | 1.0x | 0.9x | NA | NA | U.S. 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 | $ | 1,336 | $ | 1,181 | $ | 1,372 | $ | 804 | $ | 721 | $ | 1,525 | 1.2x | 1.1x | 13.6 | 8.0 | Asian Special Situations | |||||||||||||||||||||||||||||||||||||||||||||||||||||
SSG Fund V | 2018 | 2,014 | 1,878 | 956 | 328 | 763 | 1,091 | 1.2x | 1.1x | 66.5 | 35.5 | Asian Special Situations |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | $ | (44,407) | $ | (36,426) | $ | (7,981) | (22) | % | |||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (18,656) | (21,305) | 2,649 | 12 | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | (63,063) | $ | (57,731) | (5,332) | (9) |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Fee Related Earnings | $ | (63,063) | $ | (57,731) | $ | (5,332) | (9) | % | |||||||||||||||||||||||||||||||||||||||
Investment loss—realized | — | (5,698) | 5,698 | 100 | |||||||||||||||||||||||||||||||||||||||||||
Interest and other investment income—realized | 355 | 168 | 187 | 111 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (90) | (977) | 887 | 91 | |||||||||||||||||||||||||||||||||||||||||||
Realized net investment income (loss) | 265 | (6,507) | 6,772 | NM | |||||||||||||||||||||||||||||||||||||||||||
Realized Income | $ | (62,798) | $ | (64,238) | 1,440 | 2 |
As of September 30, 2017 | |||||||||||
Accrued Performance Fees | Eliminations(1) | Consolidated Accrued Performance Fees | |||||||||
Segment | (Dollars in thousands) | ||||||||||
Credit Group | $ | 154,439 | $ | (4,003 | ) | $ | 150,436 | ||||
Private Equity Group | 742,011 | — | 742,011 | ||||||||
Real Estate Group | 105,131 | — | 105,131 | ||||||||
Total | $ | 1,001,581 | $ | (4,003 | ) | $ | 997,578 |
Three months ended March 31, | |||||||||||
($ in thousands) | 2021 | 2020 | |||||||||
Net cash provided by operating activities | $ | 137,408 | $ | 127,365 | |||||||
Net cash used in the Consolidated Funds' operating activities, net of eliminations | (878,526) | (490,602) | |||||||||
Net cash used in operating activities | (741,118) | (363,237) | |||||||||
Net cash used in the Company's investing activities | (3,284) | (38,906) | |||||||||
Net cash provided by (used in) the Company's financing activities | (63,442) | 944,997 | |||||||||
Net cash provided by the Consolidated Funds' financing activities, net of eliminations | 880,653 | 500,555 | |||||||||
Net cash provided by financing activities | 817,211 | 1,445,552 | |||||||||
Effect of exchange rate changes | (2,749) | (14,120) | |||||||||
Net change in cash and cash equivalents | $ | 70,060 | $ | 1,029,289 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in millions) | |||||||
Statements of cash flows data | |||||||
Net cash used in operating activities | $ | (1,192 | ) | $ | (260 | ) | |
Net cash used in investing activities | (28 | ) | (8 | ) | |||
Net cash provided by financing activities | 1,052 | 490 | |||||
Effect of foreign exchange rate change | 12 | (7 | ) | ||||
Net change in cash and cash equivalents | $ | (156 | ) | $ | 215 |
Three months ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | $ | (3,284) | $ | (3,062) | |||||||
Acquisitions, net of cash acquired | — | (35,844) | |||||||||
Net cash used in investing activities | $ | (3,284) | $ | (38,906) |
Three months ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net proceeds from issuance of Class A common stock | $ | — | $ | 383,334 | |||||||
Net borrowings of Credit Facility | 168,000 | 730,000 | |||||||||
Class A common stock dividends | (74,684) | (51,090) | |||||||||
AOG unitholder distributions | (67,084) | (55,748) | |||||||||
Series A Preferred Stock dividends | (5,425) | (5,425) | |||||||||
Stock option exercises | — | 19,551 | |||||||||
Taxes paid related to net share settlement of equity awards | (84,590) | (73,500) | |||||||||
Other financing activities | 341 | (2,125) | |||||||||
Net cash provided by (used in) the Company's financing activities | $ | (63,442) | $ | 944,997 |
Three months ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Contributions from redeemable and non-controlling interests in Consolidated Funds, net of eliminations | $ | 941,935 | $ | 133,265 | |||||||
Distributions to non-controlling interests in Consolidated Funds, net of eliminations | (38,829) | (13,492) | |||||||||
Borrowings under loan obligations by Consolidated Funds | 7,000 | 454,391 | |||||||||
Repayments under loan obligations by Consolidated Funds | (29,453) | (73,609) | |||||||||
Net cash provided by the Consolidated Funds' financing activities | $ | 880,653 | $ | 500,555 |
As of September 30, 2017 | December 31, 2016 | ||||||||||||||||||
Debt Origination Date | Maturity | Original Borrowing Amount | Carrying Value | Interest Rate | Carrying Value | Interest Rate | |||||||||||||
Credit Facility(1) | Revolver | 2/24/2022 | N/A | $ | 110,000 | 2.75% | $ | — | —% | ||||||||||
Senior Notes(2) | 10/8/2014 | 10/8/2024 | $ | 250,000 | 245,149 | 4.21% | 244,684 | 4.21% | |||||||||||
2015 Term Loan(3) | 9/2/2015 | 7/29/2026 | $ | 35,205 | 35,032 | 2.79% | 35,063 | 2.74% | |||||||||||
2016 Term Loan(4) | 12/21/2016 | 1/15/2029 | $ | 26,376 | 25,999 | 3.02% | 26,037 | 2.66% | |||||||||||
2017 Term Loan A(4) | 3/22/2017 | 1/22/2028 | $ | 17,600 | 17,474 | 2.70% | N/A | N/A | |||||||||||
2017 Term Loan B(4) | 5/10/2017 | 10/15/2029 | $ | 35,198 | 35,147 | 2.63% | N/A | N/A | |||||||||||
2017 Term Loan C(4) | 6/22/2017 | 7/30/2029 | $ | 17,211 | 17,206 | 2.75% | N/A | N/A | |||||||||||
Total debt obligations | $ | 486,007 | $ | 305,784 |
Credit | Private Equity | Real Estate | Total | ||||||||||||
(Dollars in millions) | |||||||||||||||
Level I | $ | 622 | $ | 2,785 | $ | — | $ | 3,407 | |||||||
Level II | 9,640 | 404 | (78 | ) | 9,966 | ||||||||||
Level III | 28,116 | 11,478 | 5,330 | 44,924 | |||||||||||
Total fair value | 38,378 | 14,667 | 5,252 | 58,297 | |||||||||||
Other net asset value and available capital(1) | 32,099 | 9,908 | 5,341 | 47,348 | |||||||||||
Total AUM | $ | 70,477 | $ | 24,575 | $ | 10,593 | $ | 105,645 |
$45.76 | ||||||||
Risk-free interest rate | 0.88% | |||||||
Volatility | 35.0% | |||||||
Dividend yield | 3.5% | |||||||
Cost of equity | 10.0% |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs (1) | ||||||||||
January 1, 2021 - January 31, 2021 | — | $ | — | — | $ | 150,000 | ||||||||
February 1, 2021 - February 28, 2021 | — | — | — | 150,000 | ||||||||||
March 1, 2021 - March 31, 2021 | — | — | — | 150,000 | ||||||||||
Total | — | — |
Exhibit No. | Description | |||||||
Second Amended and Restated Certificate of | ||||||||
Bylaws of Ares Management Incorporation (incorporated by reference to Exhibit | ||||||||
Third Amended & Restated 2014 Equity Incentive Plan. | ||||||||
Fifth Amended and Restated Exchange Agreement, dated April 1, 2021. | ||||||||
Third Amended and Restated Tax Receivable Agreement, dated April 1, 2021. | ||||||||
Form of Indemnification Agreement. | ||||||||
31.1* | Certification of the Chief Executive Officer pursuant to Rule | |||||||
31.2* | Certification of the Chief Financial Officer pursuant to Rule | |||||||
32.1* | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350. | |||||||
101.INS* | XBRL Instance | |||||||
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: May 6, 2021 | By: | /s/ Michael J Arougheti | |||||||||
Name: | Michael J Arougheti | ||||||||||
Title: | Co-Founder, Chief Executive Officer & President (Principal Executive Officer) | ||||||||||
Dated: May 6, 2021 | |||||||||||
By: | |||||||||||
/s/ Michael R. McFerran | |||||||||||
Name: | Michael R. McFerran | ||||||||||
Title: | |||||||||||