Earnings Presentation Fourth Quarter and Full Year 2025 Exhibit 99.2
2 Important Notice This presentation is prepared for Ares Management Corporation (“Ares”) (NYSE: ARES) for the benefit of its public stockholders. This presentation is solely for information purposes in connection with evaluating the business, operations and financial results of Ares and certain of its affiliates. Any discussion of specific Ares entities is provided solely to demonstrate such entities’ role within the Ares organization and their contribution to the business, operations and financial results of Ares. This presentation may not be referenced, quoted or linked by website, in whole or in part, except as agreed to in writing by Ares. This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. Forward-looking statements can be identified by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “foresees” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. Actual outcomes and results could differ materially from those suggested by this presentation due to the impact of many factors beyond the control of Ares, including those described in the “Risk Factors” section of our filings with the Securities and Exchange Commission (“SEC”). These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in our periodic filings. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date of this presentation. Ares does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. Certain information discussed in this presentation was derived from third party sources and has not been independently verified and, accordingly, Ares makes no representation or warranty in respect of this information and assumes no responsibility for independent verification of such information. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice. The following slides contain summaries of certain financial and statistical information about Ares. The information contained in this presentation is summary information that is intended to be considered in the context of Ares’ SEC filings and other public announcements that Ares may make, by press release or otherwise, from time to time. Ares undertakes no duty or obligation to publicly update or revise these statements or other information contained in this presentation. In addition, this presentation contains information about Ares, its affiliated funds and certain of their respective personnel and affiliates, and their respective historical performance. You should not view information related to the past performance of Ares and its affiliated funds as indicative of future results. Certain information set forth herein includes estimates and targets and involves significant elements of subjective judgment and analysis. No representations are made as to the accuracy of such estimates or targets or that all assumptions relating to such estimates or targets have been considered or stated or that such estimates or targets will be realized. Further, certain fund performance information, unless otherwise stated, is before giving effect to management fees, carried interest or incentive fees and other expenses. This presentation does not constitute, and shall not be construed as, an offer to buy or sell, or the solicitation of an offer to buy or sell, any securities, investment funds, vehicles or accounts, investment advice, or any other service by Ares of any of its affiliates or subsidiaries. Nothing in this presentation constitutes the provision of tax, accounting, financial, investment, regulatory, legal or other advice by Ares or its advisors. Management uses certain non-GAAP financial measures, including Assets Under Management, Fee Paying Assets Under Management, Fee Related Earnings and Realized Income to evaluate Ares’ performance and that of its business segments. Management believes that these measures provide investors with a greater understanding of Ares’ business and that investors should review the same supplemental non-GAAP financial measures that management uses to analyze Ares’ performance. The measures described herein represent those non-GAAP measures used by management, in each case, before giving effect to the consolidation of certain funds within its results in accordance with GAAP. These measures should be considered in addition to, and not in lieu of, Ares’ financial statements prepared in accordance with GAAP. The definitions and reconciliations of these measures to the most directly comparable GAAP measures, as well as an explanation of why we use these measures, are included in the Glossary. Amounts and percentages may reflect rounding adjustments and consequently totals may not appear to sum. For the definitions of certain terms used in this presentation, please refer to the “Glossary” slides. The results contained in this presentation are made as of December 31, 2025, unless another time is specified in relation to them, and access to this presentation at any given time shall not give rise to any interpretation that there has been no change in the facts set forth in this presentation since that date. Throughout this presentation, “NM” indicates data has not been presented as it was deemed not meaningful. For additional important disclosure information, please refer to the footnotes and endnotes of this presentation, as needed.
3 Q4-25 and FY-25 Financial Results Assets Under Management Corporate Actions Fourth Quarter and Full Year 2025 Highlights 1) Unconsolidated management fees includes $17.4 million and $44.8 million from Consolidated Funds that are eliminated upon consolidation for Q4-25 and FY-25, respectively, and excludes management fees attributable to certain joint venture partners. Unconsolidated other fees represents $77.2 million and $272.7 million for Q4-25 and FY-25, respectively, and excludes administrative fees that are presented as a reduction to respective expenses and administrative fees attributable to certain joint venture partners. 2) Net inflows of capital represents gross capital commitments less redemptions. • Total Assets Under Management (“AUM”) of $622.5 billion • Total Fee Paying AUM (“FPAUM”) of $384.9 billion • Available Capital of $156.0 billion • AUM Not Yet Paying Fees available for future deployment of $78.8 billion • Raised $35.9 billion and $113.2 billion in gross new capital for Q4-25 and FY-25, respectively, with net inflows of capital2 of $34.4 billion and $107.7 billion, respectively, for these periods • Capital deployment of $45.8 billion and $145.8 billion during Q4-25 and FY-25, respectively, including $19.2 billion and $69.1 billion, respectively, by our drawdown funds for these periods • Declared quarterly dividend of $1.35 per share of Class A and non-voting common stock, which is payable on March 31, 2026 to stockholders of record as of March 17, 2026 • Declared quarterly dividend of $0.84375 per share of Series B mandatory convertible preferred stock, which is payable on April 1, 2026 to preferred stockholders of record as of March 15, 2026 SLIDE REVIEWED AND CONFIRMED FINAL IN BOARD DECK • GAAP net income attributable to Ares Management Corporation of $54.2 million and $527.4 million, respectively • GAAP basic and diluted earnings per share of Class A and non-voting common stock of $0.08 and $1.71, respectively • GAAP management fees of $991.1 million and $3,680.5 million, respectively • Unconsolidated management fees and other fees of $1,070.9 million and $3,955.6 million, respectively1 • Fee Related Performance Revenues of $171.2 million and $301.3 million, respectively • Fee Related Earnings of $527.7 million and $1,775.3 million, respectively • Realized Income of $589.1 million and $1,848.3 million, respectively • After-tax Realized Income of $1.45 and $4.76 per share of Class A and non-voting common stock, respectively • [TBD]
4 Quarter ended December 31, Year ended December 31, $ in thousands, except share data 2025 2024 2025 2024 Revenues Management fees $991,096 $779,156 $3,680,467 $2,942,126 Carried interest allocation 205,401 196,174 1,153,976 390,180 Incentive fees 206,658 239,118 362,453 344,157 Principal investment income (loss) (2,788) 877 48,149 45,424 Administrative, transaction and other fees 104,554 43,672 356,437 162,894 Total revenues 1,504,921 1,258,997 5,601,482 3,884,781 Expenses Compensation and benefits 604,956 463,062 2,565,625 1,731,747 Performance related compensation 332,921 309,384 1,094,355 449,564 General, administrative and other expenses 289,851 199,122 996,075 736,501 Expenses of Consolidated Funds 20,916 9,199 52,711 20,879 Total expenses 1,248,644 980,767 4,708,766 2,938,691 Other income (expense) Net realized and unrealized gains on investments 106,186 2,789 307,582 16,570 Interest and dividend income 8,379 23,102 47,451 43,054 Interest expense (45,365) (37,909) (171,642) (142,966) Other income (expense), net (255,247) 20,100 (319,745) 627 Net realized and unrealized gains on investments of Consolidated Funds 154,663 121,185 551,076 313,963 Interest and other income of Consolidated Funds 122,490 201,033 575,273 933,349 Interest expense of Consolidated Funds (140,737) (208,657) (595,818) (835,335) Total other income (expense), net (49,631) 121,643 394,177 329,262 Income before taxes 206,646 399,873 1,286,893 1,275,352 Income tax expense 8,148 49,857 198,535 164,617 Net income 198,498 350,016 1,088,358 1,110,735 Less: Net income attributable to non-controlling interests in Consolidated Funds 126,521 59,326 253,904 295,772 Net income attributable to Ares Operating Group entities 71,977 290,690 834,454 814,963 Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities (490) (902) 1,349 103 Less: Net income attributable to non-controlling interests in Ares Operating Group entities 18,219 114,275 305,743 351,118 Net income attributable to Ares Management Corporation 54,248 177,317 527,362 463,742 Less: Series B mandatory convertible preferred stock dividends declared 25,312 22,781 101,250 22,781 Net income attributable to Ares Management Corporation Class A and non-voting common stockholders $28,936 $154,536 $426,112 $440,961 Net income per share of Class A and non-voting common stock: Basic $0.08 $0.72 $1.71 $2.04 Diluted $0.08 $0.72 $1.71 $2.04 Weighted-average shares of Class A and non-voting common stock: Basic 221,143,277 202,602,918 217,361,945 198,054,451 Diluted 221,143,277 215,079,786 217,361,945 198,054,451 GAAP Statements of Operations
5 RI and Other Measures Financial Summary Quarter ended December 31, Year ended December 31, $ in thousands, except share data (and as otherwise noted) 2025 2024 % Change 2025 2024 % Change Management fees1 $993,655 $780,692 27% $3,682,922 $2,957,430 25% Fee related performance revenues 171,158 161,984 6 301,309 231,537 30 Other fees 77,214 25,348 205 272,707 91,879 197 Compensation and benefits expenses2 (525,087) (438,355) (20) (1,817,319) (1,418,536) (28) General, administrative and other expenses3 (189,237) (133,429) (42) (664,319) (500,573) (33) Fee Related Earnings 527,703 396,240 33 1,775,300 1,361,737 30 Realized net performance income 102,232 89,333 14 169,011 148,878 14 Investment income—realized 567 10,664 (95) 41,443 39,651 5 Net interest expense (41,441) (20,187) (105) (137,446) (83,146) (65) Realized Income 589,061 476,050 24 1,848,308 1,467,120 26 After-tax Realized Income4 $529,125 $434,685 22 $1,704,236 $1,347,823 26 After-tax Realized Income per share of Class A and non-voting common stock5 $1.45 $1.23 18 $4.76 $3.97 20 Other Data Fee Related Earnings margin 42.5% 40.9% 41.7% 41.5% Effective management fee rate 0.99% 1.02% 1.00% 1.02% 1) Includes Part I Fees of $146.0 million and $122.0 million for Q4-25 and Q4-24, respectively, and $533.6 million and $462.4 million for FY-25 and FY-24, respectively. 2) Includes fee related performance compensation of $99.1 million and $100.0 million for Q4-25 and Q4-24, respectively, and $180.8 million and $141.7 million for FY-25 and FY-24, respectively. 3) Includes supplemental distribution fees of $20.8 million and $13.6 million for Q4-25 and Q4-24, respectively, and $80.7 million and $51.2 million for FY-25 and FY-24, respectively. 4) For Q4-25, Q4-24 and FY-25, FY-24, after-tax Realized Income includes current income tax related to: (i) entity level taxes of $18.5 million, $6.2 million and $49.8 million, $28.5 million, respectively, and (ii) corporate level tax expense of $41.4 million, $35.2 million and $94.2 million, $90.8 million, respectively. For more information regarding after-tax RI, please refer to the “Glossary” slides. 5) Calculation of after-tax Realized Income per share of Class A and non-voting common stock uses the total average shares of Class A and non-voting common stock outstanding and the proportional dilutive effects of the Ares’ equity-based awards and Series B mandatory convertible preferred stock. Please refer to slide 23 for additional information.
6 Gross New Capital Commitments1 1) Represents gross new capital commitments during the period presented, including equity and debt commitments, and gross inflows into our open-ended managed accounts, publicly-traded vehicles and perpetual wealth vehicles. Commitments denominated in currencies other than U.S. dollar have been converted at the prevailing quarter-end exchange rate. $ in billions Q4-25 FY 2025 Full Year Primary Activities Credit Group U.S. Direct Lending $11.0 $36.2 • Capital raised of $18.4 billion by our business development companies (“BDCs”), including $11.5 billion by Ares Strategic Income Fund (“ASIF”) and $5.5 billion by ARCC • Debt and equity commitments to various funds, including debt commitments of $3.7 billion to Ares Senior Direct Lending Fund III, L.P. (“SDL III”) Liquid Credit 4.1 11.2 • Equity and debt commitments to various funds • Four new U.S. CLOs and three new European CLOs European Direct Lending 1.5 8.9 • Capital raised of $3.6 billion by our open-ended European direct lending fund • Debt and equity commitments to various funds, including debt commitments of $2.9 billion to Ares Capital Europe VI, L.P. (“ACE VI”) Opportunistic Credit 1.1 5.9 • Equity and debt commitments to various funds, including equity commitments of $5.0 billion to our third opportunistic credit fund Alternative Credit 0.6 4.2 • Equity and debt commitments to various funds, including equity commitments of $1.5 billion and debt commitments of $0.3 billion to our open-ended core alternative credit fund APAC Credit 0.5 0.5 • Equity commitments to various funds, including $0.4 billion to our seventh Asian special situations fund Total Credit Group $18.8 $66.9 Real Assets Group Real Estate $7.4 $16.5 • Debt and equity commitments to various funds, including debt commitments of $7.1 billion and equity commitments of $1.6 billion to real estate debt funds and equity commitments of $1.9 billion to our 11th U.S. value-add real estate equity fund • Capital raised of $1.8 billion by our diversified non-traded REIT and of $0.6 billion by our industrial non-traded REIT • Equity commitments of $0.4 billion to our Japanese open-ended industrial real estate fund Infrastructure 2.9 7.5 • Equity and debt commitments to various funds, including equity commitments of $2.5 billion and debt commitments of $0.5 billion to our sixth infrastructure debt fund and equity commitments of $0.7 billion to Ares Climate Infrastructure Partners II, L.P. (“ACIP II”), bringing total equity commitments to $1.6 billion • Capital raised of $2.0 billion by our open-ended infrastructure fund • Equity commitments of $0.8 billion to Japan DC Partners I, L.P. (“JDC I”), bringing total equity commitments to $2.4 billion Total Real Assets Group $10.3 $24.0 Private Equity Group Corporate Private Equity $0.7 $2.2 • Equity commitments of $2.0 billion to Ares Corporate Opportunities Fund VII, L.P. (“ACOF VII”), bringing total equity commitments to $3.9 billion APAC Private Equity 0.1 0.1 • Equity commitments to various funds Total Private Equity Group $0.8 $2.3 Secondaries Group Private Equity Secondaries $2.2 $6.2 • Capital raised of $2.6 billion by Ares Private Markets Fund (“APMF”) • Equity and debt commitments to various funds Infrastructure Secondaries 0.8 3.3 • Equity commitments of $3.3 billion to Ares Secondaries Infrastructure Solutions III, L.P. (“ASIS III”) and related vehicles, bringing total equity commitments to $4.2 billion Credit Secondaries 1.0 3.0 • Equity commitments of $2.9 billion to Ares Credit Secondaries Fund, L.P. (“ACS”), bringing total equity commitments to $4.0 billion Real Estate Secondaries — 0.4 • Equity commitments to various funds Total Secondaries Group $4.0 $12.9 Other Businesses Insurance $2.0 $7.1 • Additional managed assets Total Other Businesses $2.0 $7.1 Total $35.9 $113.2
7 Q4-24 Q3-25 Q4-25 Assets Under Management1 1) AUM amounts include vehicles managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of ARCC and a SEC-registered investment adviser (“IHAM”). AUM as of December 31, 2025 was $622.5 billion, an increase of 29% from prior year • The increase of $138.1 billion was primarily driven by: – commitments to our drawdown funds, primarily our third opportunistic credit fund, ACE VI, SDL III, ASIS III and ACS; – capital raised by our perpetual capital vehicles, primarily our credit BDCs, our open-ended European direct lending fund, APMF and our open-ended infrastructure fund; – the acquisition of GCP International; and – additional managed assets from our insurance platform FPAUM Q4-24 Q3-25 Q4-25 Credit Real Assets Private Equity Secondaries Other Businesses ($ in billions) ($ in billions) AUM $348.8 $24.0 $75.3 $29.2 $7.1 $484.4 $595.7 $8.3 $38.4 $132.4 $25.1 $292.6 $22.4 $11.4 $5.5 $44.1 $209.2 $7.0 $249.8 $28.1 $11.8 $80.5 $367.6 SLIDE REVIEWED AND CONFIRMED FINAL IN BOARD DECK $391.5 $406.9 $139.1 $25.3 $42.1 $9.1 $240.2 $84.1 $14.4 $29.5 $7.1 $622.5 $384.9 FPAUM as of December 31, 2025 was $384.9 billion, an increase of 32% from prior year • The increase of $92.3 billion was primarily driven by: – the deployment of capital by our drawdown funds, primarily across the U.S. and European direct lending and alternative credit strategies; – capital raised by our perpetual capital vehicles, primarily our credit BDCs, our open-ended European direct lending fund, APMF and our open-ended infrastructure fund; – the acquisition of GCP International; and – additional managed assets from our insurance platform
8 Q4-24 Q3-25 Q4-25 $2.4 Perpetual Capital Perpetual Capital AUM Perpetual Capital as of December 31, 2025 was $200.0 billion, an increase of 50% from prior year • The increase of $66.4 billion was primarily driven by: – capital raised by our credit BDCs, our open-ended European direct lending fund, APMF and our open-ended infrastructure fund; – commitments to our open-ended core alternative credit fund; – the conversion of our closed-end sports, media and entertainment fund to a perpetual capital vehicle; – the acquisition of GCP International; and – additional managed assets from our insurance platform Perpetual Capital by Type ($ in billions) ($ in billions) Credit Real Assets Secondaries Other Businesses $8.2 $4.7 $6.4 $97.8 $133.5 $27.0 $43.9 $133.6 $190.3 Q4-24 Q3-25 Q4-25 $190.3 $52.0 $57.9 $34.8 $45.6 $46.0 $133.6 $35.5 $38.7 $24.2 $35.2 SLIDE REVIEWED AND CONFIRMED FINAL IN BOARD DECK $140.0 $45.7 $5.3 $9.0 $200.0 $36.3 $62.6 $55.1 $200.0 Publicly-Traded Vehicles Perpetual Wealth Vehicles Private Commingled Vehicles Managed Accounts
9 7% 10% 9% 6% 53% 15% 23% 16% 6% 5% 43% 7% AUM and Management Fees by Type 85% 1) Long-dated funds generally have a contractual life of five years or more at inception. For the year ended December 31, 2025: • 85% of assets under management were perpetual capital or long-dated funds • 93% of management fees were earned from perpetual capital or long-dated funds AUM by Type Management Fees by Type 93% SLIDE REVIEWED AND CONFIRMED FINAL IN BOARD DECK Perpetual Capital - Publicly-Traded Vehicles Perpetual Capital - Perpetual Wealth Vehicles Perpetual Capital - Private Commingled Vehicles Perpetual Capital - Managed Accounts Long-Dated Funds1 Other
10 Q4-24 Q3-25 Q4-25 Available Capital and AUM Not Yet Paying Fees Available Capital as of December 31, 2025 was $156.0 billion, an increase of 17% from prior year • The increase of $22.9 billion was primarily driven by: – commitments to our infrastructure, opportunistic credit, infrastructure secondaries, credit secondaries and real estate strategies; and – the acquisition of GCP International Available Capital AUM Not Yet Paying Fees Q4-24 Q3-25 Q4-25 ($ in billions) ($ in billions) Credit Real Assets Private Equity Secondaries Other Businesses $0.5 $100.1 $4.1 $19.9 $8.5 $12.7 $32.1 $4.7 $100.0 $156.0 $15.1 $36.3 $5.2 $99.4 $79.4 $2.5 $9.4 $3.7 $95.0 $103.0 $5.7 $18.6 $4.0 $74.7 $101.0 $6.9 $20.6 $0.8 $72.7 SLIDE REVIEWED AND CONFIRMED FINAL IN BOARD DECK $133.1 $149.5 AUM Not Yet Paying Fees as of December 31, 2025 was $101.0 billion, an increase of 6% from prior year • The increase of $6.0 billion was primarily driven by: – commitments to our infrastructure debt, credit secondaries and opportunistic credit strategies; and – the acquisition of GCP International
11 $60.5 $12.7 $5.6 $78.8 $16.0 $4.3 $1.9 AUM Not Yet Paying Fees Available for Future Deployment AUM Not Yet Paying Fees As of December 31, 2025, AUM Not Yet Paying Fees includes $78.8 billion of AUM available for future deployment1 and $4.3 billion of development assets not yet stabilized2 that could collectively generate approximately $730.4 million in potential incremental annual management fees • The $78.8 billion of AUM Not Yet Paying Fees available for future deployment primarily includes $28.8 billion in U.S. direct lending funds, $15.9 billion in European direct lending funds, $8.9 billion in alternative credit funds, $6.7 billion in infrastructure funds, $6.2 billion in opportunistic credit funds, $6.0 billion in real estate funds and $3.7 billion in credit secondaries funds 1) No assurance can be made that such results will be achieved or capital will be deployed. Assumes the AUM Not Yet Paying Fees as of December 31, 2025 is invested and such fees are paid on an annual basis. Does not reflect any associated reductions in management fees from certain existing funds, some of which may be material. AUM available for future deployment could generate approximately $708.4 million in potential incremental annual management fees. Reference to the $708.4 million includes approximately $37.4 million in potential incremental management fees from deploying cash and a portion of undrawn/available credit facilities at ARCC in excess of its leverage at December 31, 2025. Note that no potential Part I Fees are reflected in any of the amounts above. 2) Development assets not yet stabilized represents fund assets that are in the development stage. Upon completion of development, management fees generally increase with a change in fee base, in fee rate or both. As of December 31, 2025, development assets not yet stabilized could generate approximately $22.0 million in potential incremental annual management fees. There is no assurance such assets will be stabilized. 3) Capital available for deployment for follow-on investments represents capital committed to funds that are past their investment periods but have capital available to be called for follow-on investments in existing portfolio companies. As of December 31, 2025, capital available for deployment for follow-on investments could generate approximately $165.7 million in additional potential annual management fees. There is no assurance such capital will be invested. ($ in billions)($ in billions) AUM Not Yet Paying Fees Credit Real Assets Secondaries $78.8 $101.0 SLIDE REVIEWED AND CONFIRMED FINAL IN BOARD DECK Funds in or Expected to Be in Wind-down Capital Available for Future Deployment1 Capital Available for Deployment for Follow-on Investments3 Development Assets Not Yet Stabilized2
12 Q4-24 Q3-25 Q4-25 $29.5 Incentive Eligible AUM and Incentive Generating AUM ($ in billions) ($ in billions) Credit Real Assets Private Equity Secondaries Other Businesses Total Incentive Generating AUM $102.1 $32.6 $8.7 $15.2 $1.5 $160.1 + Uninvested IEAUM 66.5 15.6 5.6 14.1 — 101.8 + IEAUM below hurdle 4.0 13.3 7.6 0.2 — 25.1 + Part II Fees below hurdle2 40.8 2.1 — — — 42.9 Incentive Eligible AUM $213.4 $63.6 $21.9 $29.5 $1.5 $329.9 Credit Real Assets Private Equity Secondaries Other Businesses 1) Incentive Generating AUM includes $55.3 billion of AUM from funds generating incentive income that is not recognized by Ares until such fees are crystallized or no longer subject to reversal. 2) Represents Incentive Eligible AUM associated with Part II Fees that are paid in arrears as of the end of each calendar year when the cumulative aggregate realized capital gains exceed the cumulative aggregate realized capital losses and aggregate unrealized capital depreciation, less the aggregate amount of Part II Fees paid in all prior years since inception. Incentive Eligible AUM Incentive Eligible AUM as of December 31, 2025 was $329.9 billion, an increase of 18% from prior year • The increase of $50.2 billion was primarily driven by: – commitments to funds across our U.S. and European direct lending, real estate, infrastructure, private equity secondaries and opportunistic credit strategies; and – the acquisition of GCP International Incentive Generating AUM1 as of December 31, 2025 was $160.1 billion, an increase of 28% from prior year • The increase was primarily driven by deployment of capital within credit funds and funds from the acquisition of GCP International that are generating returns in excess of their hurdle rates as of December 31, 2025 Of the $228.1 billion of Incentive Eligible AUM that is currently invested, 70% is Incentive Generating AUM • Excluding the Incentive Eligible AUM associated with Part II Fees,2 86% of Incentive Eligible AUM that is currently invested is Incentive Generating AUM Q4-25 Incentive Generating to Incentive Eligible AUM Reconciliation $63.6 $1.5 $210.5 $21.9 $56.3 $21.8 $26.5 $192.6 $20.2 $46.1 $279.7 $316.5 $329.9 $19.1 $1.7 $1.4 $213.4 SLIDE REVIEWED AND CONFIRMED FINAL IN BOARD DECK
13 Fee Related Performance Revenues Fee related performance revenues were $301.3 million during FY-25, generated primarily in our U.S. and European direct lending, alternative credit and private equity secondaries strategies Real Estate U.S. Direct Lending European Direct Lending Alternative Credit Private Equity Secondaries IGAUM by Strategy for Funds Generating Fee Related Performance Revenues ($ in billions) FY-24 FY-25 $6.2 $8.7 $13.2 $7.2 $5.0 $5.0 $2.2 $40.2 Net Fee Related Performance Revenues1 by Strategy ($ in millions) FY-24 FY-25 $38.4 $15.4 $20.2 $20.8 $89.8 $21.1 1) Fee related performance revenues by strategy is presented net of the associated fee related performance compensation. $32.9 $25.5 $31.6 $120.6 $4.0 $10.4 $15.2$9.8
14 $32.9 $10.0 $0.5 $1.7 $0.7 Q4-25 Gross Capital Deployment Capital Deployment ($ in billions) Capital Deployment in Drawdown Funds ($ in billions) Total Gross Capital Deployment during Q4-25 was $45.8 billion compared to $32.1 billion during Q4-24 • Deployment by our drawdown funds was $19.2 billion in Q4-25 compared to $14.0 billion in Q4-24 – Of our drawdown funds, the most active investment strategies were U.S. and European direct lending, real estate and alternative credit • Deployment by our perpetual capital vehicles was $23.9 billion in Q4-25 compared to $17.2 billion in Q4-24 – Of our perpetual capital vehicles, the most active investment strategies were U.S. direct lending, real estate and alternative credit Total Gross Capital Deployment during FY-25 was $145.8 billion compared to $106.7 billion during FY-24 • Deployment by our drawdown funds was $69.1 billion in FY-25 compared to $50.1 billion in FY-24 • Deployment by our perpetual capital vehicles was $71.1 billion in FY-25 compared to $51.7 billion in FY-24 FY-24 FY-25 Credit Real Assets Private Equity SecondariesCredit Real Assets Private Equity Secondaries Other Businesses $45.8 $38.9 $0.4 $50.1 $7.2 $48.2 $1.4 $69.1 $15.6 $3.9 $3.6
15Note: Past performance is not indicative of future results. Please refer to the endnotes on slide 39 for additional information. Credit Group1 Alternative Credit 2.8% / 14.4% $ in thousands Q4-25 Q4-24 % Change FY-25 FY-24 % Change Management and other fees $690,275 $585,643 18% $2,582,207 $2,219,635 16% Fee related performance revenues 129,258 153,783 (16) 210,356 202,703 4 Fee Related Earnings $521,202 $458,761 14 $1,824,711 $1,568,157 16 Realized Income $610,292 $530,098 15 $1,952,297 $1,688,110 16 $ in billions Q4-25 Q4-24 % Change FY-25 FY-24 % Change Gross Capital Deployment $32.9 $25.8 28% $111.2 $87.6 27% AUM 406.9 348.8 17 FPAUM 249.8 209.2 19 Financial Summary and Highlights Strategy Performance Highlights Opportunistic Credit 2.1% / 12.2% U.S. Senior Direct Lending 3.6% / 13.0% U.S. Junior Direct Lending 2.3% / 15.0% European Direct Lending 2.1% / 8.9% APAC Credit 5.6% / 24.2% Q4-25 / FY-25 gross returns2 • Management and other fees increased by 18% and 16% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by deployment within our U.S. and European direct lending and alternative credit strategies and by capital raised by our publicly-traded and perpetual wealth vehicles • Fee related performance revenues decreased by 16% for Q4-25 compared to Q4-24 primarily due to lower incentive fees recognized from various direct lending funds. Fee related performance revenues increased by 4% for FY-25 compared to FY-24 primarily driven by higher incentive fees earned from a European direct lending fund and our open-ended core alternative credit fund • Fee Related Earnings increased by 14% and 16% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by the increases in management fees • Realized Income increased by 15% and 16% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by the increases in Fee Related Earnings • Gross Capital Deployment totaled $32.9 billion and $111.1 billion for Q4-25 and FY-25, respectively, primarily driven by $19.0 billion and $60.6 billion in U.S. direct lending, $4.5 billion and $16.2 billion in alternative credit, $4.1 billion and $16.1 billion in European direct lending and $4.4 billion and $12.9 billion in liquid credit for Q4-25 and FY-25, respectively
16Note: Past performance is not indicative of future results. Please refer to the endnotes on slide 40 for additional information. Financial Summary and Highlights Americas Real Estate Equity 0.5% / 7.6% Strategy Performance Highlights European Real Estate Equity 1.0% / 3.7% Infrastructure Debt 2.3% / 6.2% Q4-25 / FY-25 gross returns4 Real Assets Group1 • Management and other fees increased by 125% and 100% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by fees from funds that we manage as a result of the acquisition of GCP International – Management fees in Q4-25 included catch-up fees2 of $11.4 million primarily from our fourth European value-add real estate equity fund and our 11th U.S. value-add real estate equity fund. Management fees in FY-25 included catch-up fees2 of $9.6 million primarily from U.S. Logistics Partners V, L.P., our fourth European value-add real estate equity fund and ACIP II – Management fees in Q4-24 and FY-24 included catch-up fees of $0.7 million and $7.8 million, respectively, primarily from ACIP II and AREOF IV • Fee related performance revenues for Q4-25 and FY-25 primarily represented incentive fees earned from our diversified non-traded REIT and U.S. open-ended industrial real estate fund • Fee Related Earnings increased by 162% and 119% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily due to the increases in management and other fees • Realized Income increased by 99% and 103% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by the increases in Fee Related Earnings, partially offset by higher interest expense • Gross Capital Deployment totaled $10.0 billion and $23.5 billion for Q4-25 and FY-25, respectively, driven by $7.3 billion and $16.8 billion in real estate and $2.7 billion and $6.7 billion in infrastructure for Q4-25 and FY-25, respectively $ in thousands Q4-253 Q4-24 % Change FY-253 FY-24 % Change Management and other fees $249,933 $111,292 125% $859,459 $429,231 100% Fee related performance revenues 29,614 — NM 35,665 — NM Fee Related Earnings $150,649 $57,427 162 $464,660 $212,106 119 Realized Income $144,758 $72,862 99 $442,054 $218,210 103 $ in billions Q4-25 Q4-24 % Change FY-25 FY-24 % Change Gross Capital Deployment $10.0 $3.1 223% $23.6 $9.8 141% AUM 139.1 75.3 85 FPAUM 84.1 44.1 91
17 • Management and other fees increased by 24% and 2% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by management fees from ACOF VII which started generating fees in the fourth quarter of 2025 – Management fees in Q4-25 and FY-25 included catch-up fees2 of $2.2 million and $1.7 million, respectively, from Ares Asia Private Equity Fund III, L.P. (“AAPE III”) • Fee Related Earnings increased by 49% for Q4-25 compared to Q4-24, primarily due to the increase in management fees. Fee Related Earnings decreased by 4% for FY-25 compared to FY-24, primarily driven by the increase in operating expenses, partially offset by the increase in management fees • Realized Income decreased by 65% and 25% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by realized investment losses in connection with liquidating an APAC private equity fund in Q4-25, partially offset by the increases in management fees • Gross Capital Deployment totaled $0.5 billion and $1.4 billion for Q4-25 and FY-25, respectively, primarily within corporate private equity Note: Past performance is not indicative of future results. Please refer to the endnotes on slide 42 for additional information. Financial Summary and Highlights Strategy Performance Highlights Q4-25 / FY-25 gross returns3 Private Equity Group1 $ in thousands Q4-25 Q4-24 % Change FY-25 FY-24 % Change Management and other fees $42,649 $34,441 24% $140,996 $138,825 2% Fee Related Earnings $21,060 $14,181 49 $58,320 $60,546 (4) Realized Income $5,873 $16,841 (65) $39,539 $52,501 (25) $ in billions Q4-25 Q4-24 % Change FY-25 FY-24 % Change Gross Capital Deployment $0.5 $0.1 NM $1.4 $0.4 250% AUM 25.3 24.0 5 FPAUM 14.4 11.4 26 Corporate Private Equity 0.04% / 5.0%
18Note: Past performance is not indicative of future results. Please refer to the endnotes on slide 42 for additional information. Financial Summary and Highlights Strategy Performance Highlights Real Estate Secondaries4 1.3% / 7.2% Q4-25 / since inception Q4-25 net returns(2) Secondaries Group1 • Management and other fees increased by 17% and 43% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by higher management fees from capital raised by APMF and by commitments to ASIS III – Management fees in FY-25 included catch-up fees of $25.9 million primarily from ASIS III – Management fees in Q4-24 and FY-24 included catch-up fees2 of $4.9 million and $1.9 million, respectively, primarily from ASIS III • Fee related performance revenues increased by 50% and 92% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, driven by higher incentive fees earned from APMF • Fee Related Earnings increased by 10% and 65% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily due to the increases in management fees and fee related performance revenues • Realized Income increased by 23% and 101% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by the increases in Fee Related Earnings • Gross Capital Deployment totaled $1.7 billion and $6.0 billion for Q4-25 and FY-25, respectively, primarily driven by $0.9 billion and $3.6 billion in private equity secondaries and $0.4 billion and $1.1 billion in real estate secondaries for Q4-25 and FY-25, respectively $ in thousands Q4-25 Q4-24 % Change FY-25 FY-24 % Change Management and other fees $66,157 $56,743 17% $282,872 $197,509 43% Fee related performance revenues 12,286 8,201 50 55,288 28,834 92 Fee Related Earnings $43,252 $39,172 10 $208,406 $126,172 65 Realized Income $42,597 $34,622 23 $203,300 $101,036 101 $ in billions Q4-25 Q4-24 % Change FY-25 FY-24 % Change Gross Capital Deployment $1.7 $1.9 (11)% $5.9 $5.1 16% AUM 42.1 29.2 44 FPAUM 29.5 22.4 32 APMF3 1.8% / 14.2% Q4-25 / since inception Q4-25 net returns Private Equity Secondaries4 (0.1)% / 2.7% APMF3 1.8% / 14.2% Q4-25 / FY-25 gross returns Real Estate Secondaries4 1.3% / 7.2% APMF3 1.8% / 14.2%
Supplemental Details
20 Financial Details – Segments onciliation – Unconsolidated Reporting $0.0 million for Q4-25 and Q4-24, Quarter ended December 31, 2025 $ in thousands Credit Group Real Assets Group Private Equity Group Secondaries Group Other Operations Management Group Total1 Management fees $674,811 $194,323 $42,123 $65,696 $16,702 $— $993,655 Fee related performance revenues 129,258 29,614 — 12,286 — — 171,158 Other fees 15,464 55,610 526 461 152 5,001 77,214 Compensation and benefits (173,659) (76,417) (14,322) (20,688) (2,286) (138,595) (425,967) Compensation and benefits—fee related performance compensation (77,669) (16,695) — (4,756) — — (99,120) General, administrative and other expenses (47,003) (35,786) (7,267) (9,747) (2,691) (86,743) (189,237) Fee related earnings 521,202 150,649 21,060 43,252 11,877 (220,337) 527,703 Performance income—realized 288,427 29,627 2,669 — — — 320,723 Performance related compensation—realized (198,363) (17,990) (2,138) — — — (218,491) Realized net performance income 90,064 11,637 531 — — — 102,232 Investment income (loss)—realized 2,751 6,478 (11,939) 1,269 2,181 (173) 567 Interest income 572 1,973 1 128 445 805 3,924 Interest expense (4,297) (25,979) (3,780) (2,052) (9,166) (91) (45,365) Realized net investment income (loss) (974) (17,528) (15,718) (655) (6,540) 541 (40,874) Realized income $610,292 $144,758 $5,873 $42,597 $5,337 $(219,796) $589,061 Quarter ended December 31, 2024 $ in thousands Credit Group Real Assets Group Private Equity Group Secondaries Group Other Operations Management Group Total1 Management fees $574,736 $102,812 $34,004 $56,637 $12,503 $— $780,692 Fee related performance revenues 153,783 — — 8,201 — — 161,984 Other fees 10,907 8,480 437 106 127 5,291 25,348 Compensation and benefits (136,618) (40,954) (14,093) (16,469) (3,545) (126,629) (338,308) Compensation and benefits—fee related performance compensation (98,197) — — (1,850) — — (100,047) General, administrative and other expenses (45,850) (12,911) (6,167) (7,453) (1,543) (59,505) (133,429) Fee related earnings 458,761 57,427 14,181 39,172 7,542 (180,843) 396,240 Performance income—realized 204,988 35,993 34,267 — — — 275,248 Performance related compensation—realized (134,667) (22,149) (29,099) — — — (185,915) Realized net performance income 70,321 13,844 5,168 — — — 89,333 Investment income (loss)—realized 3,270 5,776 639 2,175 (249) (947) 10,664 Interest income 5,952 4,106 1,958 908 4,341 432 17,697 Interest expense2 (8,206) (8,291) (5,105) (7,633) (8,228) (421) (37,884) Realized net investment income (loss) 1,016 1,591 (2,508) (4,550) (4,136) (936) (9,523) Realized income $530,098 $72,862 $16,841 $34,622 $3,406 $(181,779) $476,050 1) Includes results of the reportable segments on a combined basis together with the Operations Management Group. Please refer to “GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis” on slides 37-38. 2) Interest expense was historically allocated among our segments based only on the cost basis of our balance sheet investments. Beginning in the first quarter of 2025, we changed our interest expense allocation methodology to consider the growing sources of financing requirements, including the cost of acquisitions in addition to the cost basis of our balance sheet investments. Prior period amounts have been reclassified to conform to the current period presentation.
21 Year ended December 31, 2025 $ in thousands Credit Group Real Assets Group Private Equity Group Secondaries Group Other Operations Management Group Total1 Management fees $2,529,312 $678,355 $139,172 $276,292 $59,791 $— $3,682,922 Fee related performance revenues 210,356 35,665 — 55,288 — — 301,309 Other fees 52,895 181,104 1,824 6,580 2,700 27,604 272,707 Compensation and benefits (650,954) (295,380) (60,701) (69,355) (26,066) (534,113) (1,636,569) Compensation and benefits—fee related performance compensation (138,035) (20,236) — (22,479) — — (180,750) General, administrative and other expenses (178,863) (114,848) (21,975) (37,920) (9,021) (301,692) (664,319) Fee related earnings 1,824,711 464,660 58,320 208,406 27,404 (808,201) 1,775,300 Performance income—realized 383,892 99,813 42,402 177 — — 526,284 Performance related compensation—realized (257,290) (67,883) (31,994) (106) — — (357,273) Realized net performance income 126,602 31,930 10,408 71 — — 169,011 Investment income (loss)—realized 14,321 31,356 (15,659) 1,645 8,425 1,355 41,443 Interest income 6,704 6,895 2,025 1,176 14,489 2,907 34,196 Interest expense (20,041) (92,787) (15,555) (7,998) (34,898) (363) (171,642) Realized net investment income (loss) 984 (54,536) (29,189) (5,177) (11,984) 3,899 (96,003) Realized income $1,952,297 $442,054 $39,539 $203,300 $15,420 $(804,302) $1,848,308 Year ended December 31, 2024 $ in thousands Credit Group Real Assets Group Private Equity Group Secondaries Group Other Operations Management Group Total1 Management fees $2,177,816 $401,968 $137,130 $197,287 $43,229 $— $2,957,430 Fee related performance revenues 202,703 — — 28,834 — — 231,537 Other fees 41,819 27,263 1,695 222 523 20,357 91,879 Compensation and benefits (558,574) (160,357) (56,830) (58,287) (21,482) (421,268) (1,276,798) Compensation and benefits—fee related performance compensation (133,735) — — (8,003) — — (141,738) General, administrative and other expenses (161,872) (56,768) (21,449) (33,881) (6,584) (220,019) (500,573) Fee related earnings 1,568,157 212,106 60,546 126,172 15,686 (620,930) 1,361,737 Performance income—realized 326,202 60,317 43,299 361 — — 430,179 Performance related compensation—realized (207,794) (37,283) (36,334) 110 — — (281,301) Realized net performance income 118,408 23,034 6,965 471 — — 148,878 Investment income (loss)—realized 21,159 5,184 1,926 2,565 9,467 (650) 39,651 Interest income 11,671 7,649 1,970 972 35,810 1,723 59,795 Interest expense2 (31,285) (29,763) (18,906) (29,144) (33,142) (701) (142,941) Realized net investment income (loss) 1,545 (16,930) (15,010) (25,607) 12,135 372 (43,495) Realized income $1,688,110 $218,210 $52,501 $101,036 $27,821 $(620,558) $1,467,120 Financial Details – Segments 1) Includes results of the reportable segments on a combined basis together with the Operations Management Group. Please refer to “GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis” on slides 37-38. 2) Interest expense was historically allocated among our segments based only on the cost basis of our balance sheet investments. Beginning in the first quarter of 2025, we changed our interest expense allocation methodology to consider the growing sources of financing requirements, including the cost of acquisitions in addition to the cost basis of our balance sheet investments. Prior period amounts have been reclassified to conform to the current period presentation.
22 Realized Income per Share Data Quarter ended December 31, Year ended December 31, $ in thousands, except share data 2025 2024 2025 2024 After-tax Realized Income Realized Income before taxes $589,061 $476,050 $1,848,308 $1,467,120 Entity level foreign, state and local taxes (18,544) (6,152) (49,841) (28,458) Realized Income before corporate income taxes 570,517 469,898 1,798,467 1,438,662 Corporate income taxes1 (41,392) (35,213) (94,231) (90,839) After-tax Realized Income $529,125 $434,685 $1,704,236 $1,347,823 After-tax Realized Income per share2 $1.53 $1.30 $4.96 $4.15 After-tax Realized Income per share of Class A and non-voting common stock Realized Income before corporate income taxes $570,517 $469,898 $1,798,467 $1,438,662 x Average ownership % of Ares Operating Group 67.65% 64.71% 67.01% 63.74% Realized Income before corporate income taxes attributable to Class A and non-voting common stockholders $385,955 $304,071 $1,205,207 $916,978 Corporate income taxes1 (41,392) (35,213) (94,231) (90,839) After-tax Realized Income attributable to Class A and non-voting common stockholders $344,563 $268,858 $1,110,976 $826,139 After-tax Realized Income per share of Class A and non-voting common stock3 $1.45 $1.23 $4.76 $3.97 1) Corporate income taxes represent accrued corporate taxes, net of deductions, to be paid or benefits to be received by Ares: • Corporate income taxes excludes the effects of $(22.9) million, $23.9 million for Q4-25, Q4-24, and $77.1 million, $55.1 million for FY-25, FY-24, respectively, of deferred income tax (benefit) primarily related to net unrealized performance income and net unrealized investment income, as these incomes have been excluded from RI. • The primary differences between the current portion of taxable income and RI relate to the timing of certain items, primarily vesting of equity awards, payment of placement fees, and amortization of intangibles. • Tax deductions associated with the vesting of restricted stock units reduced our current tax provision by $41.5 million, $18.2 million and $136.6 million, $70.8 million for Q4-25, Q4-24 and FY-25, FY-24 respectively. The inclusion of the benefit in the after-tax RI per share calculation had the effect of increasing this metric by $0.18, $0.09 and $0.59, $0.34 decreased the RI cash tax rate by 10.5%, 6.3% and 11.0%, 7.6% for Q4-25, Q4-24 and FY-25, FY-24 respectively, from the Company’s statutory tax rate of 23.4% and 23.5% for FY-25 and FY-24, respectively. • Corporate Income taxes represent the current portion of our GAAP tax provision and is presented before giving effect to the tax benefits recorded in connection with the Tax Receivable Agreement (“TRA”). As a result, a higher corporate income tax is used to calculate after-tax RI per share than the current taxes paid by the Company. The current tax benefits associated with the TRA, which represent 85.0% of the tax benefits, were $28.6 million and $16.8 million for FY-25 and FY-24, respectively. 2) Weighted-average shares used for after-tax RI per share for Q4-25 and Q4-24 were 346,239,110 and 334,358,818, respectively. YTD after-tax realized income per share represents the sum of the last four quarters. Please refer to slide 23 for additional information. 3) Weighted-average shares used for after-tax RI per share of Class A and non-voting common stock for Q4-25 and Q4-24 were 237,329,787 and 219,480,058, respectively. YTD after-tax realized income per share represents the sum of the last four quarters. Please refer to slide 23 for additional information.
23 Weighted-Average Shares 1) Represents proportional dilutive impact based upon the weighted average percentage of Ares Operating Group owned by Ares Management Corporation (67.65% and 64.71% as of December 31, 2025 and 2024, respectively). 2) Represents units exchangeable for shares of Class A common stock on a one-for-one basis. 3) We apply the if-converted and treasury stock methods to determine the dilutive weighted-average common shares represented by (i) our Series B mandatory convertible preferred stock convertible to shares of Class A common stock; and (ii) restricted units to be settled in shares of Class A common stock. Under the if-converted method, shares of our Series B mandatory convertible preferred stock are presumed to be converted to shares of Class A common stock as of the beginning of the period, thus increasing the weighted-average number of shares and the dilutive effect of these securities. Under the treasury stock method, compensation expense attributed to future services and not yet recognized is presumed to be used to acquire outstanding shares of Class A common stock, thus reducing the weighted-average number of shares and the dilutive effect of these awards. 4) Excludes Class B common stock and Class C common stock as they are not entitled to any economic benefits of Ares in an event of dissolution, liquidation or winding up of Ares. Q4-25 Q4-24 Total Shares Common Shares, As Adjusted1 Total Shares Common Shares, As Adjusted1 Weighted-average shares of Class A and non-voting common stock 221,143,277 221,143,277 202,602,918 202,602,918 Ares Operating Group Units exchangeable into shares of Class A common stock2 105,771,518 — 110,476,048 — Dilutive effect of Series B mandatory convertible preferred stock3 9,624,763 9,624,763 8,802,984 8,802,984 Dilutive effect of unvested restricted common units3 9,699,552 6,561,747 12,476,868 8,074,156 Total Weighted-Average Shares Used For Realized Income4 346,239,110 237,329,787 334,358,818 219,480,058
24 74% 19% 4% 2% Substantial balance sheet value related to investments primarily in Ares managed vehicles and net accrued performance income Balance Sheet 1) Unconsolidated investments includes $1,346.7 million of investments in Consolidated Funds that are eliminated upon consolidation for GAAP and excludes $57.6 million of investments that are attributable to non-controlling interests. Corporate investment portfolio excludes accrued carried interest allocation, a component of gross accrued performance income, of $3,972.7 million. 2) As of December 31, 2024, gross and net accrued performance income on a GAAP basis was $3,495.1 million and $957.9 million, respectively, and on an unconsolidated basis was $3,542.0 million and $1,004.8 million, respectively. The unconsolidated basis includes $85.2 million and $46.9 million, respectively, of accrued performance income as of December 31, 2025 and 2024, related to our Consolidated Funds that has been eliminated upon consolidation. Net accrued performance income represents accrued carried interest allocation and excludes net performance income—realized that has been recognized but not yet received by the Company as of the reporting date. 3) Represents ratings as of December 31, 2025. 4) Represents the sum of our cash, cash equivalents and available capacity on our revolving credit facility as of December 31, 2025. Credit Real Assets Private Equity Secondaries SLIDE REVIEWED AND CONFIRMED FINAL IN BOARD DECK Net Accrued Performance Income by Group2 67% 20% 12% 5% December 31, 2024 $957.9 million $1,021.4 million Financial Strength Metrics BBB+ / A-3 Rated by S&P and Fitch $948.9 million Available Liquidity4 $ in millions As of December 31, 2025 Cash and cash equivalents $488.9 Term debt obligations 2,561.4 Amount drawn on $1,840.0 revolving credit facility ($460.0 available capacity) 1,380.0 GAAP Unconsolidated Corporate investment portfolio1 $1,535.7 $2,824.8 Gross accrued performance income2 3,972.7 4,057.9 Net accrued performance income2 1,021.4 1,106.6 Net Accrued Performance Income Rollforward $957.9 Q4-24 (+) Net Change in Unrealized (-) Net Realizations Q4-25 ($ in millions) $212.5 $149.0 December 31, 2025 $1,021.4
25 Balance Sheet Investments by Strategy1 $ in millions As of December 31, 2025 As of December 31, 2024 Credit Liquid Credit $107.3 $139.8 Alternative Credit 1.7 0.8 Opportunistic Credit 19.5 36.8 U.S. Direct Lending 72.1 93.6 European Direct Lending 22.5 40.3 APAC Credit 7.9 10.1 Credit $231.0 $321.4 Real Assets Real Estate $423.6 $237.2 Infrastructure 68.6 74.8 Real Assets $492.2 $312.0 Private Equity Corporate Private Equity $480.8 $307.0 APAC Private Equity 1.8 13.9 Private Equity $482.6 $320.9 Secondaries Private Equity Secondaries $182.5 $152.8 Real Estate Secondaries 11.8 12.3 Infrastructure Secondaries 5.1 5.1 Credit Secondaries — 0.2 Secondaries $199.4 $170.4 Other Insurance $517.5 $389.1 Other Investments 902.1 367.3 Other $1,419.6 $756.4 Total $2,824.8 $1,881.1 1) As of December 31, 2025, the fair value of our corporate investment portfolio was $1,535.7 million as reported in accordance with GAAP. The difference between GAAP and unconsolidated investments represents $1,346.7 million of investments in Consolidated Funds that are eliminated upon consolidation and excludes $57.6 million of investments that are attributable to non-controlling interests. Corporate investment portfolio excludes accrued carried interest allocation, a component of gross accrued performance income, of $3,972.7 million.
26 AUM Rollforward Q4-25 AUM Rollforward $ in millions Credit Real Assets Private Equity Secondaries Other Businesses Total Q3-25 Ending Balance $391,454 $132,354 $25,096 $38,375 $8,377 $595,656 Net new par/equity commitments 10,175 6,412 779 3,699 1,963 23,028 Net new debt commitments 8,608 3,905 — 308 — 12,821 Capital reductions (1,786) (1,241) — (189) — (3,216) Distributions (4,059) (1,930) (675) (354) (325) (7,343) Redemptions (1,168) (282) — (31) — (1,481) Net allocations among investment strategies 648 97 — — (745) — Change in fund value 2,994 (227) 88 348 (163) 3,040 Q4-25 Ending Balance $406,866 $139,088 $25,288 $42,156 $9,107 $622,505 QoQ change $15,412 $6,734 $192 $3,781 $730 $26,849 FY-25 AUM Rollforward $ in millions Credit Real Assets Private Equity Secondaries Other Businesses Total Q4-24 Ending Balance $348,858 $75,298 $24,041 $29,153 $7,096 $484,446 Acquisitions — 45,281 856 — — 46,137 Net new par/equity commitments 36,518 14,316 2,282 11,855 7,129 72,100 Net new debt commitments 30,389 9,611 — 1,083 — 41,083 Capital reductions (13,310) (3,275) (55) (280) — (16,920) Distributions (15,997) (6,382) (2,031) (963) (1,349) (26,722) Redemptions (3,695) (1,164) — (154) (510) (5,523) Net allocations among investment strategies 2,582 272 — 73 (2,927) — Change in fund value 21,521 5,131 195 1,389 (332) 27,904 Q4-25 Ending Balance $406,866 $139,088 $25,288 $42,156 $9,107 $622,505 YoY change $58,008 $63,790 $1,247 $13,003 $2,011 $138,059 Credit AUM increased by 17% from Q4-24, primarily driven by commitments to our third opportunistic credit fund, ACE VI and SDL III, and by capital raised by our BDCs and our open-ended European direct lending fund Real Assets AUM increased by 85% from Q4-24, primarily driven by the acquisition of GCP International, by commitments to real estate debt funds and by capital raised by our open-ended infrastructure fund Private Equity AUM increased by 5% from Q4-24, primarily driven by commitments to ACOF VII and from acquired APAC private equity funds, partially offset by distributions from certain funds within the corporate private equity strategy Secondaries AUM increased by 45% from Q4-24, primarily driven by capital raised by APMF and by commitments to ASIS III and ACS Other Businesses AUM increased by 28% from Q4-24, primarily driven by additional managed assets from our insurance platform
27 Real Assets FPAUM increased by 91% from Q4-24, primarily driven by the acquisition of GCP International and by capital raised by our open-ended infrastructure fund FPAUM Rollforward Q4-25 FPAUM Rollforward $ in millions Credit Real Assets Private Equity Secondaries Other Businesses Total Q3-25 Ending Balance $240,168 $80,503 $11,848 $28,079 $7,024 $367,622 Commitments 8,305 3,245 564 1,312 1,318 14,744 Deployment/increase in leverage 9,522 2,270 31 352 — 12,175 Capital reductions (2,192) (240) — — — (2,432) Distributions (6,086) (2,439) (908) (177) (325) (9,935) Redemptions (1,159) (282) — (31) — (1,472) Net allocations among investment strategies 565 74 — — (639) — Change in fund value 399 103 (269) 71 (228) 76 Change in fee basis 294 831 3,171 (125) — 4,171 Q4-25 Ending Balance $249,816 $84,065 $14,437 $29,481 $7,150 $384,949 QoQ change $9,648 $3,562 $2,589 $1,402 $126 $17,327 FY-25 FPAUM Rollforward $ in millions Credit Real Assets Private Equity Secondaries Other Businesses Total Q4-24 Ending Balance $209,145 $44,088 $11,427 $22,401 $5,492 $292,553 Acquisitions — 30,467 1,118 — — 31,585 Commitments 28,769 8,004 564 6,205 5,907 49,449 Deployment/increase in leverage 34,118 6,527 65 1,132 395 42,237 Capital reductions (10,404) (1,190) (11) — — (11,605) Distributions (18,755) (6,854) (916) (348) (1,286) (28,159) Redemptions (3,335) (1,164) — (154) — (4,653) Net allocations among investment strategies 2,858 247 — 73 (3,178) — Change in fund value 7,067 2,811 (284) 302 (180) 9,716 Change in fee basis 353 1,129 2,474 (130) — 3,826 Q4-25 Ending Balance $249,816 $84,065 $14,437 $29,481 $7,150 $384,949 YoY change $40,671 $39,977 $3,010 $7,080 $1,658 $92,396 Credit FPAUM increased by 19% from Q4-24, primarily driven by deployment of capital in funds across our U.S. and European direct lending and alternative credit strategies, and by capital raised by our BDCs and our open- ended European direct lending fund Private Equity FPAUM increased by 26% from Q4-24, primarily driven by ACOF VII as the fund started generating fees in the fourth quarter of 2025 Secondaries FPAUM increased by 32% from Q4-24, primarily driven by capital raised by APMF and by commitments to ASIS III Other Businesses FPAUM increased by 30% from Q4-24, primarily driven by additional managed assets from our insurance platform
28 AUM and FPAUM by Strategy As of December 31, 2025 $ in billions AUM % AUM FPAUM % FPAUM Credit Liquid Credit $53.1 13% $52.0 21% Alternative Credit 48.1 12 35.3 14 Opportunistic Credit 19.8 5 9.8 4 U.S. Direct Lending1 189.6 47 102.3 41 European Direct Lending 84.7 21 45.1 18 APAC Credit 11.5 1 5.3 2 Other 0.1 1 — — Credit $406.9 100% $249.8 100% Real Assets Real Estate $113.8 82% $71.1 85% Infrastructure 25.3 18 13.0 15 Real Assets $139.1 100% $84.1 100% Private Equity Corporate Private Equity $21.9 87% $12.2 85% APAC Private Equity 3.4 13 2.2 15 Private Equity $25.3 100% $14.4 100% Secondaries Private Equity Secondaries $22.1 52% $16.6 56% Real Estate Secondaries 8.2 19 6.7 23 Infrastructure Secondaries 6.9 17 4.9 20 Credit Secondaries 4.9 12 1.3 1 Secondaries $42.1 100% $29.5 100% Other Businesses Insurance2 $9.0 99% $7.0 99% Other 0.1 1 0.1 1 Other Businesses $9.1 100% $7.1 100% Total $622.5 $384.9 1) AUM includes ARCC, IHAM, ADLP LLC (“ADLP”) and Senior Direct Lending Program (“SDLP”) AUM of $35.9 billion, $11.1 billion, $3.7 billion and $3.5 billion, respectively. ARCC’s wholly owned portfolio company, IHAM, an SEC registered investment adviser, manages 23 vehicles as of December 31, 2025. ADLP is a joint venture through which ASIF co-invests with a North American pension fund. SDLP is a joint venture through which ARCC co-invests with Varagon Capital Partners. 2) Excludes $16.9 billion of AUM and $15.9 billion of FPAUM that is sub-advised by Ares vehicles and included within other strategies.
29 Credit Group Fund Performance Metrics The following table presents the performance data for funds that are not drawdown funds as of December 31, 2025: Note: Past performance is not indicative of future results. Return information presented may not reflect actual returns earned by investors in the applicable fund. Fund performance metrics for significant funds may be marked as “NM” as they may not be considered meaningful due to the limited time since the initial investment and/or early stage of capital deployment. Please refer to endnotes on slides 39-40 for additional information. * Denotes significant funds, which represent commingled funds that contributed at least 1% of total management fees or comprised at least 1% of Ares’ total FPAUM for the past two consecutive quarters. All other funds included in the table were previously reported as significant funds. Returns(%) Primary Investment Strategy Year of Inception Quarter-to-Date Year-to-Date Since Inception3 ($ in millions) AUM Gross Net Gross Net Gross Net ARCC4* U.S. Direct Lending 2004 $35,901 N/A 2.1 N/A 10.3 N/A 12.0 CADC5* U.S. Direct Lending 2017 8,730 N/A 0.9 N/A 7.6 N/A 7.0 Open-ended core alternative credit fund6* Alternative Credit 2021 7,546 3.0 2.2 12.7 9.3 11.8 8.8 ASIF5* U.S. Direct Lending 2023 24,334 N/A 2.0 N/A 9.3 N/A 10.9 Open-ended European direct lending fund7* European Direct Lending 2024 6,410 N/A 1.6 N/A 7.4 N/A 9.6 The following table presents the performance data for our drawdown funds as of December 31, 2025: Primary Investment Strategy Year of Inception Original Capital Commitments Capital Invested to Date Realized Value8 Unrealized Value9 Total Value MoIC IRR(%) ($ in millions) AUM Gross10 Net11 Gross12 Net13 Funds Deploying Capital PCS II* U.S. Direct Lending 2020 $6,512 $5,114 $4,053 $1,426 $4,087 $5,513 1.4x 1.3x 13.0 9.2 ASOF II* Opportunistic Credit 2021 9,134 7,128 6,202 399 7,859 8,258 1.5x 1.3x 17.9 13.1 ACE VI Unlevered14* European Direct Lending 2022 24,675 7,439 3,299 216 3,404 3,620 1.1x 1.1x 12.3 8.8 ACE VI Levered14* 9,667 3,679 286 3,928 4,214 1.2x 1.1x 18.6 13.2 SDL III Unlevered15* U.S. Direct Lending 2023 27,353 3,311 1,473 93 1,496 1,589 1.1x 1.1x 12.9 9.6 SDL III Levered* 11,959 4,540 407 4,766 5,173 1.2x 1.1x 24.6 17.3 Pathfinder II* Alternative Credit 2023 7,233 6,612 3,576 155 3,947 4,102 1.2x 1.2x 22.2 15.3
30 Primary Investment Strategy Year of Inception Original Capital Commitments Capital Invested to Date Realized Value8 Unrealized Value9 Total Value MoIC IRR(%) ($ in millions) AUM Gross10 Net11 Gross12 Net13 Funds Harvesting Investments SSF IV Opportunistic Credit 2015 $1,105 $1,515 $1,402 $1,325 $985 $2,310 1.7x 1.6x 9.2 8.0 ACE III16 European Direct Lending 2015 1,777 2,822 2,583 2,752 1,202 3,954 1.6x 1.5x 9.0 6.5 SSG Fund IV APAC Credit 2016 613 1,181 1,731 1,707 317 2,024 1.3x 1.2x 10.5 6.8 PCS I U.S. Direct Lending 2017 2,523 3,365 2,653 3,018 924 3,942 1.6x 1.4x 11.6 8.3 SSG Fund V APAC Credit 2018 1,615 1,878 2,631 2,798 288 3,086 1.3x 1.2x 25.1 15.6 SDL I Unlevered U.S. Direct Lending 2018 2,214 922 872 883 232 1,115 1.4x 1.3x 9.0 7.0 SDL I Levered 2,045 2,022 2,134 705 2,839 1.6x 1.4x 14.3 10.7 ACE IV Unlevered17* European Direct Lending 2018 5,215 2,851 2,454 2,273 956 3,229 1.4x 1.3x 7.9 5.7 ACE IV Levered17* 4,819 4,095 4,055 1,793 5,848 1.6x 1.4x 10.8 7.7 ASOF I Opportunistic Credit 2019 2,057 3,518 3,136 3,609 1,395 5,004 1.8x 1.6x 19.0 14.3 Pathfinder I Alternative Credit 2020 3,778 3,683 3,180 1,308 3,027 4,335 1.5x 1.4x 14.3 10.3 ACE V Unlevered18* European Direct Lending 2020 17,387 7,026 5,831 1,832 5,582 7,414 1.4x 1.3x 10.1 7.5 ACE V Levered18* 6,376 5,304 2,364 5,130 7,494 1.5x 1.4x 14.1 10.3 SDL II Unlevered* U.S. Direct Lending 2021 16,275 1,989 1,700 494 1,606 2,100 1.3x 1.2x 11.2 8.9 SDL II Levered* 6,047 4,924 2,051 4,564 6,615 1.5x 1.3x 17.5 13.3 Credit Group Fund Performance Metrics (cont'd) Note: Past performance is not indicative of future results. Return information presented may not reflect actual returns earned by investors in the applicable fund. Fund performance metrics for significant funds may be marked as “NM” as they may not be considered meaningful due to the limited time since the initial investment and/or early stage of capital deployment. Please refer to endnotes on slides 39-40 for additional information. * Denotes significant funds, which represent commingled funds that contributed at least 1% of total management fees or comprised at least 1% of Ares’ total FPAUM for the past two consecutive quarters. All other funds included in the table were previously reported as significant funds. The following table presents the performance data for our drawdown funds as of December 31, 2025:
31 Note: Past performance is not indicative of future results. Return information presented may not reflect actual returns earned by investors in the applicable fund. Fund performance metrics for significant funds may be marked as “NM” as they may not be considered meaningful due to the limited time since the initial investment and/or early stage of capital deployment. Please refer to endnotes on slides 40-41 for additional information. * Denotes significant funds, which represent commingled funds that contributed at least 1% of total management fees or comprised at least 1% of Ares’ total FPAUM for the past two consecutive quarters. All other funds included in the table were previously reported as significant funds. Real Assets Group Fund Performance Metrics The following table presents the performance data for funds that are not drawdown funds as of December 31, 2025: Returns(%) Primary Investment Strategy Year of Inception Quarter-to-Date Year-to-Date Since Inception5 ($ in millions) AUM Gross Net Gross Net Gross Net Diversified non-traded REIT6* Real Estate 2012 $7,417 N/A 3.4 N/A 11.6 N/A 6.5 J-REIT7* Real Estate 2012 7,547 N/A N/A N/A N/A N/A 13.3 Industrial non-traded REIT8* Real Estate 2017 7,648 N/A 1.8 N/A 8.3 N/A 8.5 U.S. open-ended industrial real estate fund9* Real Estate 2017 5,983 2.9 2.6 7.7 6.5 16.3 13.3 Japanese open-ended industrial real estate fund9* Real Estate 2020 3,915 2.6 2.4 10.1 9.4 13.1 11.8 Primary Investment Strategy Year of Inception Original Capital Commitments Capital Invested to Date Realized Value10 Unrealized Value11 Total Value MoIC IRR(%) ($ in millions) AUM Gross12 Net13 Gross14 Net15 Fund Deploying Capital IDF V16 Infrastructure 2020 $5,077 $4,585 $4,481 $2,273 $3,167 $5,440 1.3x 1.2x 12.7 10.0 Funds Harvesting Investments USPF IV Infrastructure 2010 321 1,688 2,121 2,571 299 2,870 1.4x 1.2x 5.7 2.5 US VIII Real Estate 2013 104 824 790 1,533 52 1,585 2.0x 1.7x 20.4 16.6 EF IV17 Real Estate 2014 270 1,299 1,437 1,942 164 2,106 1.5x 1.3x 13.5 8.8 EPEP II18 Real Estate 2015 141 747 707 749 121 870 1.2x 1.1x 8.6 4.5 EIF V Infrastructure 2015 594 801 1,439 1,849 510 2,359 1.6x 1.8x 18.6 13.9 US IX Real Estate 2017 486 1,040 977 1,396 413 1,809 1.9x 1.6x 18.5 15.5 EF V19 Real Estate 2018 1,523 1,968 2,048 1,189 1,408 2,597 1.3x 1.1x 8.2 3.6 IDF IV20 Infrastructure 2018 1,773 4,012 4,562 3,647 1,548 5,195 1.2x 1.2x 5.8 4.5 AREOF III Real Estate 2019 1,324 1,697 1,565 980 1,056 2,036 1.3x 1.2x 12.2 7.0 EIP II21* Real Estate 2020 4,144 1,839 1,790 346 1,639 1,985 1.2x 1.1x 2.8 2.4 The following table presents the performance data for our drawdown funds as of December 31, 2025:
32 Private Equity Group Fund Performance Metrics Note: Past performance is not indicative of future results. Return information presented may not reflect actual returns earned by investors in the applicable fund. Fund performance metrics for significant funds may be marked as “NM” as they may not be considered meaningful due to the limited time since the initial investment and/or early stage of capital deployment. Please refer to endnotes on slide 42 for additional information. * Denotes significant funds, which represent commingled funds that contributed at least 1% of total management fees or comprised at least 1% of Ares’ total FPAUM for the past two consecutive quarters. All other funds included in the table were previously reported as significant funds. The following table presents the performance data for our drawdown funds as of December 31, 2025: Primary Investment Strategy Year of Inception Original Capital Commitments Capital Invested to Date Realized Value4 Unrealized Value5 Total Value MoIC IRR(%) ($ in millions) AUM Gross6 Net7 Gross8 Net9 Fund Deploying Capital ACOF VI* Corporate Private Equity 2020 $8,852 $5,743 $5,966 $2,224 $8,417 $10,641 1.7x 1.5x 21.3 16.0 Funds Harvesting Investments ACOF IV Corporate Private Equity 2012 874 4,700 4,319 9,359 728 10,087 2.3x 1.9x 18.8 13.6 ACOF V* Corporate Private Equity 2017 6,332 7,850 7,611 4,499 5,891 10,390 1.4x 1.2x 6.2 4.4 AEOF Corporate Private Equity 2018 168 1,120 977 556 76 632 0.6x 0.6x (8.2) (10.5)
33 Secondaries Group Fund Performance Metrics Note: Past performance is not indicative of future results. Return information presented may not reflect actual returns earned by investors in the applicable fund. Fund performance metrics for significant funds may be marked as “NM” as they may not be considered meaningful due to the limited time since the initial investment and/or early stage of capital deployment. Please refer to the endnotes on slide 42-43 for additional information. For our drawdown funds within the Secondaries Group, returns are calculated from results of the underlying portfolio that are generally reported on a three month lag and may not include the impact of economic and market activities occurring in the current reporting period. * Denotes significant funds, which represent commingled funds that contributed at least 1% of total management fees or comprised at least 1% of Ares’ total FPAUM for the past two consecutive quarters. All other funds included in the table were previously reported as significant funds. The following table presents the performance data for our drawdown funds as of December 31, 2025: Primary Investment Strategy Year of Inception Original Capital Commitments Capital Invested to Date Realized Value6 Unrealized Value7 Total Value MoIC IRR(%) ($ in millions) AUM Gross8 Net9 Gross10 Net11 Funds Harvesting Investments LEP XV12 Private Equity Secondaries 2013 $1,123 $3,250 $2,653 $3,101 $484 $3,585 1.5x 1.4x 15.3 10.1 LEP XVI12* Private Equity Secondaries 2016 4,146 4,896 4,318 2,079 3,264 5,343 1.4x 1.2x 14.2 8.6 LREF VIII12 Real Estate Secondaries 2016 2,789 3,300 2,682 1,640 1,661 3,301 1.4x 1.2x 13.1 7.9 The following table presents the performance data for fund that is not drawdown fund as of December 31, 2025: Returns(%) Primary Investment Strategy Year of Inception Quarter-to-Date Year-to-Date Since Inception5 ($ in millions) AUM Gross Net Gross Net Gross Net APMF3* Private Equity Secondaries 2022 $5,008 N/A 1.8 N/A 13.4 N/A 14.2
34 Corporate Data Board of Directors Michael Arougheti Ashish Bhutani Antoinette Bush Kipp deVeer Paul G. Joubert David Kaplan Co-Founder and Chief Executive Officer of Ares Former Chairman and Chief Executive Officer of Lazard Asset Management and Former Vice Chairman of Lazard Ltd Former Senior Advisor to News Corp Co-President Founding Partner of EdgeAdvisors and Investing Partner in Converge Venture Partners Co-Founder Michael Lynton Eileen Naughton Dr. Judy D. Olian Antony P. Ressler Bennett Rosenthal Chairman of Snap Inc. Former Chief People Officer and Vice President of People Operations at Google, Inc. President Emeritus of Quinnipiac University Co-Founder and Executive Chairman of Ares Co-Founder and Chairman of Private Equity Group Executive Officers Michael Arougheti Kipp deVeer Blair Jacobson David Kaplan Jarrod Phillips Antony P. Ressler Co-Founder and Chief Executive Officer Co-President Co-President Co-Founder Chief Financial Officer Co-Founder and Executive Chairman Bennett Rosenthal Naseem Sagati Aghili Co-Founder and Chairman of Private Equity Group General Counsel and Corporate Secretary Investor Relations Contacts Greg Mason Partner/Co-Head of Public Markets Investor Relations Tel: (800) 340-6597 gmason@aresmgmt.com Carl Drake Partner/Senior Advisor to Public Markets Investor Relations and Corporate Communications Tel: (800) 340-6597 cdrake@aresmgmt.com Samantha Platt Vice President Tel: (800) 340-6597 splatt@aresmgmt.com General IR Contact Tel (U.S.): (888) 818-5298 Tel (International): (212) 808-1101 IRARES@aresmgmt.com Please visit our website at: www.aresmgmt.com
35 Corporate Data (cont'd) Research Coverage Autonomous Bank of America Merrill Lynch Barclays BMO Capital Markets Deutsche Bank Goldman Sachs Patrick Davitt (646) 561-6254 Craig Siegenthaler (646) 855-5004 Benjamin Budish (212) 526-2418 Brennan Hawken (646) 648-2408 Brian Bedell (212) 250-6600 Alexander Blostein (212) 357-9976 Jefferies JMP Securities JP Morgan Morgan Stanley Oppenheimer Raymond James Dan Fannon (415) 229-1523 Brian McKenna (212) 906-3545 Kenneth Worthington (212) 622-6613 Michael Cyprys (212) 761-7619 Chris Kotowski (212) 667-6699 Wilma Burdis (727) 567-9371 RBC Capital Markets Redburn Atlantic TD Cowen UBS Wolfe Research Kenneth Lee (212) 905-5995 Nicolas Watts +44 20 7000 2187 Bill Katz (212) 468-7802 Michael Brown (212) 713-1387 Steven Chubak (646) 582-9315 Corporate Headquarters Corporate Counsel Independent Registered Public Accounting Firm Securities Listing Transfer Agent 1800 Avenue of the Stars Suite 1400 Los Angeles, CA 90067 Tel: (310) 201-4100 Fax: (310) 201-4170 Kirkland & Ellis LLP Los Angeles, CA Ernst & Young LLP Los Angeles, CA NYSE: ARES Equiniti Trust Company, LLC
Reconciliation and Disclosures
37 GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis Quarter ended December 31, Year ended December 31, $ in thousands 2025 2024 2025 2024 Realized Income and Fee Related Earnings: Income before taxes $206,646 $399,873 $1,286,893 $1,275,352 Adjustments: Amortization of intangibles 51,160 29,250 195,740 125,190 Depreciation expense 13,400 9,191 46,185 32,151 Equity compensation expense 123,361 85,207 506,365 348,303 Acquisition-related equity compensation expense1 34,105 1,377 234,184 4,548 Acquisition-related compensation expense2 (3,550) 21,776 105,202 38,150 Acquisition, merger and transaction-related expense 22,537 17,966 65,363 57,360 Placement fee adjustment (378) 4,890 (3,891) 5,715 Change in value of contingent consideration3 255,696 (4,037) 301,120 (4,037) Other (income) expense, net 244 (225) 2,080 (8,135) Income before taxes of non-controlling interests in consolidated subsidiaries (463) (4,119) (15,112) (22,267) Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations (126,755) (60,781) (260,032) (302,846) Total performance (income) loss—unrealized 66,434 (13,774) (762,534) (109,533) Total performance related compensation—unrealized 15,420 28,345 594,661 36,823 Total net investment income—unrealized (68,796) (38,889) (447,916) (9,654) Realized Income 589,061 476,050 1,848,308 1,467,120 Total performance income—realized (320,723) (275,248) (526,284) (430,179) Total performance related compensation—realized 218,491 185,915 357,273 281,301 Total net investment loss—realized 40,874 9,523 96,003 43,495 Fee Related Earnings $527,703 $396,240 $1,775,300 $1,361,737 Note: This table is a reconciliation of income before taxes on a GAAP basis to RI and FRE on an unconsolidated basis, which reflects the results of the reportable segments on a combined basis together with the OMG. The OMG’s revenues and expenses are not allocated to our reportable segments but management considers the cost structure of the OMG when evaluating our financial performance. Management uses this information to assess the performance of our reportable segments and OMG and believes that this information enhances the ability of stockholders to analyze our performance. 1) Represents equity compensation expense associated with certain acquisitions for a portion of the purchase price that is required to be recorded as employee compensation. 2) Represents bonus payments, a portion of contingent liabilities (earnouts) and other costs recorded in connection with various acquisitions that are recorded as compensation expense. 3) For Q4-25 and FY-25, the change in value of contingent consideration primarily reflects progress toward achieving the earnouts established in connection with the acquisition of GCP International.
38 GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont'd) Note: These tables reconcile consolidated carried interest allocation and incentive fees reported in accordance with GAAP to unconsolidated realized performance income and consolidated GAAP other income to unconsolidated realized net investment income. These reconciliations show the results of the reportable segments on a combined basis together with the OMG. The OMG’s revenues and expenses are not allocated to our reportable segments but management considers the cost structure of the OMG when evaluating our financial performance. Management uses this information to assess the performance of our reportable segments and OMG and believes that this information enhances the ability of stockholders to analyze our performance. 1) For Q4-25 and FY-25, the change in value of contingent consideration primarily reflects progress toward achieving the earnouts established in connection with the acquisition of GCP International. Quarter ended December 31, Year ended December 31, $ in thousands 2025 2024 2025 2024 Performance income and net investment income reconciliation: Carried interest allocation $205,401 $196,174 $1,153,976 $390,180 Incentive fees 206,658 239,118 362,453 344,157 Carried interest allocation and incentive fees 412,059 435,292 1,516,429 734,337 Performance income—realized from Consolidated Funds 1,993 1,323 2,265 1,320 Fee related performance revenues (171,158) (161,984) (301,309) (231,537) Total performance (income) loss—unrealized 77,715 (5,446) (730,926) (82,718) Performance (income) loss of non-controlling interests in consolidated subsidiaries 114 6,063 39,825 8,777 Performance income—realized $320,723 $275,248 $526,284 $430,179 Total consolidated other income (loss) $(49,631) $121,643 $394,177 $329,262 Net investment income of Consolidated Funds (128,072) (115,681) (491,516) (391,925) Principal investment income (loss) (53,151) 26,329 138,608 38,367 Change in value of contingent consideration1 255,696 (4,037) 301,120 (4,037) Other expense (income), net 244 (225) 2,080 (8,135) Other expense of non-controlling interests in consolidated subsidiaries 2,836 1,337 7,444 2,627 Investment income—unrealized (68,796) (38,889) (447,916) (9,654) Total realized net investment loss $(40,874) $(9,523) $(96,003) $(43,495)
39 Credit Group 1) The Credit Group had ~635 investment and investor relations professionals, ~305 active funds, ~2,000 portfolio companies and ~1,900 alternative credit investments as of December 31, 2025. 2) Composite returns are calculated by asset-weighting the underlying fund-level time-weighted returns. Returns include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Gross time-weighted returns do not reflect the deduction of management fees, carried interest, as applicable, or other expenses, while net time-weighted returns are after giving effect to these items. We believe aggregated performance returns reflect overall quarterly performance returns in a strategy, but are not necessarily investable funds or products themselves. Additional information for performance by strategy is as follows: • Performance for the alternative credit strategy is represented by the composite made up of Pathfinder I and Pathfinder II. The net returns were 1.7% for Q4-25 and 9.8% for FY-25. • Performance for the opportunistic credit strategy is represented by the composite made up of ASOF I and ASOF II. The net fund-level returns were 1.5% for Q4-25 and 8.5% for FY-25. • Performance for the U.S. senior direct lending strategy is represented by the composite made up of SDL I, SDL II and SDL III levered feeder funds. The net returns were 2.5% for Q4-25 and 9.3% for FY-25. The gross and net returns for the composite made up of the SDL I, SDL II and SDL III unlevered feeder funds were 2.3% and 1.7% for Q4-25, respectively, and 9.3% and 7.1% for FY-25, respectively. • Performance for the U.S. junior direct lending strategy is represented by the composite made up of PCS I and PCS II. The net returns were 1.6% for Q4-25 and 10.6% for FY-25. • Performance for the European direct lending strategy is represented by the composite made up of ACE IV, ACE V and ACE VI levered Euro-denominated feeder funds. Returns presented on slide 15 for the European direct lending composite are Euro-denominated as this is the base denomination of the funds. The net returns were 1.4% for Q4-25 and 5.9% for FY-25. The gross and net returns for the composite made up of ACE IV, ACE V and ACE VI U.S. Dollar denominated feeder funds were 2.6% and 1.9% for Q4-25, respectively, and 12.2% and 8.8% for FY-25, respectively. • Performance for the APAC credit strategy is represented by the composite made up of SSG V and SSG VI. The net returns were 4.0% for Q4-25 and 17.2% for FY-25. 3) Since inception returns are annualized. 4) 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. 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 filings with the SEC, which are not part of this report. Investment Group Highlights and Fund Performance Endnotes 10) 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. Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. 11) 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. Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. 12) 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. 13) 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. 5) 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. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. Additional information related to CADC and ASIF can be found in its filings with the SEC, which are not part of this report. 6) 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. The fund is made up of a Main Class (“Class M”) and a Constrained Class (“Class C”). Class M includes investors electing to participate in all investments and Class C includes investors electing to be excluded from exposure to liquid investments. Returns presented in the table are for onshore Class M. The current quarter gross and net returns for Class M (offshore) are 2.9% and 2.3%, respectively. The year-to-date gross and net returns for Class M (offshore) are 12.5% and 9.2%, respectively. The since inception gross and net returns for Class M (offshore) are 11.8% and 8.4%, respectively. The current quarter gross and net returns for Class C (offshore) are 2.8% and 2.1%, respectively. The year-to-date gross and net returns for Class C (offshore) are 11.5% and 8.5%, respectively. The since inception gross and net returns for Class C (offshore) are 11.3% and 8.1%, respectively. 7) 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. Returns are shown for the Euro hedged distributing institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees, and currency hedging. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. 8) For funds other than our opportunistic credit funds, realized value represent the sum of all cash distributions to all partners and if applicable, exclude tax and incentive distributions made to the general partner. For our opportunistic credit funds, realized value represent the sum of all cash distributions to the fee-paying limited partners and if applicable, exclude tax and incentive distributions made to the general partner. 9) 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. For funds other than our opportunistic credit funds, the unrealized value is based on all partners. For our opportunistic credit funds, the unrealized value is based on the fee-paying limited partners. The tables for each of the investment group highlights on slides 15-18 are a financial summary only and segment results are shown before the unallocated support costs of the Operations Management Group. Please refer to “Financial Details - Segments” on slides 20-21 for complete financial results
40 Credit Group (cont’d) 14) ACE VI is made up of six parallel funds, four denominated in Euros and two denominated in GBP: ACE VI (E) Unlevered, ACE VI (E) II Unlevered, ACE VI (G) Unlevered, ACE VI (E) Levered, ACE VI (E) II Levered, and ACE VI (G) Levered, and three feeder funds: ACE VI (D) Levered, ACE VI (Y) Unlevered and ACE VI (D) Rated Notes. ACE VI (E) II Levered includes ACE VI (D) Levered feeder fund and ACE VI (E) II Unlevered includes ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds. The gross and net IRR and gross and net MoIC presented in the table are for ACE VI (E) Unlevered and ACE VI (E) Levered. Metrics for ACE VI (E) II Levered exclude the ACE VI (D) Levered feeder fund and metrics for ACE VI (E) II Unlevered exclude ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds. The gross and net IRR for ACE VI (G) Unlevered are 14.3% and 10.1%, respectively. The gross and net MoIC for ACE VI (G) Unlevered are 1.2x and 1.1x, respectively. The gross and net IRR for ACE VI (G) Levered are 22.4% and 13.3%, respectively. The gross and net MoIC for ACE VI (G) Levered are 1.2x and 1.2x, respectively. The gross and net IRR for ACE VI (E) II Unlevered are 12.1% and 8.5%, respectively. The gross and net MoIC for ACE VI (E) II Unlevered are 1.1x and 1.1x, respectively. The gross and net IRR for ACE VI (E) II Levered are 19.4% and 13.8%, respectively. The gross and net MoIC for ACE VI (E) II Levered are 1.2x and 1.2x, respectively. The gross and net IRR for ACE VI (D) Levered are 22.2% and 16.9%, respectively. The gross and net MoIC for ACE VI (D) Levered are 1.2x and 1.2x, respectively. The gross and net IRR for ACE VI (Y) Unlevered are 10.7% and 7.3%, respectively. The gross and net MoIC for ACE VI (Y) Unlevered are 1.1x and 1.1x, respectively. The gross and net IRR for ACE VI (D) Rated Notes are 19.1% and 12.0%, respectively. The gross and net MoIC for ACE VI (D) Rated Notes are 1.2x and 1.1x, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of the fund’s closing. All other values for ACE VI Unlevered and ACE VI Levered are for the combined levered and unlevered parallel funds and are converted to U.S. Dollars at the prevailing quarter-end exchange rate. 15) SDL III Unlevered includes investor commitments in three currencies: U.S. Dollars, GBP, and Yen. The gross and net IRR and MoIC presented in the table are for investors committed in U.S. Dollars. The gross and net IRR for investors committed in GBP are 13.8% and 10.3%, respectively.The gross and net MoIC for investors committed in GBP are 1.1x and 1.1x, respectively. The gross and net IRR for investors committed in Yen are 7.3% and 3.7%, respectively. The gross and net MoIC for investors committed in Yen are 1.1x and 1.0x, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of the fund’s closing. All other values for SDL III Unlevered are for the combined fund and are converted to U.S. Dollars at the prevailing quarter-end exchange rate. 16) ACE III is made up of two parallel 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 fund. The gross and net IRR for the U.S. Dollar denominated fund are 10.0% and 7.2%, respectively. The gross and net MoIC for the U.S. Dollar denominated fund are 1.7x and 1.5x, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of the fund’s closing. All other values for ACE III are for the combined fund and are converted to U.S. Dollars at the prevailing quarter-end exchange rate. Investment Group Highlights and Fund Performance Endnotes (cont'd) Real Assets Group 1) The Real Assets Group had ~915 investment and investor relations professionals, ~1,300 properties, ~90 infrastructure assets and ~110 active funds as of December 31, 2025. 2) Catch-up fees reflect the management fees generated between the fund’s initial close date and the last day of the quarter prior to the new limited partner’s commitment. Year-to-date catch-up fees are calculated based on commitments prior to FY-25 and quarter-to-date catch-up fees are calculated based on commitments prior to Q4-25, resulting in higher catch-up fees for the quarter-to-date period. 3) Includes results of GCP International following the acquisition close date of March 1, 2025. 4) Gross time-weighted returns do not reflect the deduction of management fees, carried interest, or other expenses, as applicable, while net time-weighted returns are after giving effect to these items. We believe aggregated performance returns reflect overall quarterly performance returns in a strategy, but are not necessarily investable funds or products themselves. Additional information for performance by strategy is as follows: • Performance for the Americas real estate equity strategy is represented by the composite made up of DEV II, AREOF III, US IX and US X. The net returns were 0.9% for Q4-25 and 7.1% for FY-25. • Performance for the European real estate equity strategy is represented by the composite made up of EPEP II, EPEP III, EF V and EF VI. EF V is made up of two parallel funds, one denominated in U.S. Dollars and one denominated in Euros. Returns presented on slide 16 for European real estate equity are shown for the Euro denominated composite as this is the base denomination of the funds. The net returns were 0.5% for Q4-25 and 1.9% for FY-25. The gross and net returns for the U.S. Dollar denominated feeder fund for European real estate equity were 2.6% and 2.2% for Q4-25, respectively, and 6.6% and 4.7% for FY-25, respectively. • Performance for the infrastructure debt strategy is represented by the composite made up of U.S. Dollar denominated hedged feeder funds for IDF III, IDF IV and IDF V. The net returns were 1.6% for Q4-25 and 3.9% for FY-25. 5) Since inception returns are annualized. 6) Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. The inception date used in the calculation of the since inception return is the date in which the first shares of common stock were sold after converting to a NAV-based REIT. 7) Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at NAV on the semi-annual period-end date. NAVs are calculated semi-annually in February and August, and therefore, only the since inception return is presented. The inception date used in the calculation of the since inception return is the date in which the fund’s investment units began to be listed on the Tokyo Stock Exchange. The since inception return is calculated based on the most recent NAV date. Additional information related to J-REIT can be found in its materials posted to its website, which are not part of this report. 17) ACE IV is made up of four parallel funds, two denominated in Euros and two denominated in GBP: ACE IV (E) Unlevered, ACE IV (G) Unlevered, ACE IV (E) Levered and ACE IV (G) Levered and one feeder fund: ACE IV (D) Levered. ACE IV (E) Levered includes the ACE IV (D) Levered feeder fund. The gross and net IRR and MoIC presented in the table are for ACE IV (E) Unlevered and ACE IV (E) Levered. Metrics for ACE IV (E) Levered exclude the U.S. Dollar denominated feeder fund. The gross and net IRR for ACE IV (G) Unlevered are 9.5% and 6.9%, respectively. The gross and net MoIC for ACE IV (G) Unlevered are 1.5x and 1.4x, respectively. The gross and net IRR for ACE IV (G) Levered are 12.2% and 8.6%, respectively. The gross and net MoIC for ACE IV (G) Levered are 1.7x and 1.5x, respectively. The gross and net IRR for ACE IV (D) Levered are 12.2% and 8.9%, respectively. The gross and net MoIC for ACE IV (D) Levered are 1.7x and 1.5x, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of the fund’s closing. All other values for ACE IV Unlevered and ACE IV Levered are for the combined levered and unlevered parallel funds and are converted to U.S. Dollars at the prevailing quarter-end exchange rate. 18) ACE V is made up of four parallel funds, two denominated in Euros and two denominated in GBP: ACE V (E) Unlevered, ACE V (G) Unlevered, ACE V (E) Levered, and ACE V (G) Levered, and two feeder funds: ACE V (D) Levered and ACE V (Y) Unlevered. ACE V (E) Levered includes the ACE V (D) Levered feeder fund and ACE V (E) Unlevered includes the ACE V (Y) Unlevered feeder fund. The gross and net IRR and gross and net MoIC presented in the table are for ACE V (E) Unlevered and ACE V (E) Levered. Metrics for ACE V (E) Levered exclude the ACE V (D) Levered feeder fund and metrics for ACE V (E) Unlevered exclude the ACE V (Y) Unlevered feeder fund. The gross and net IRR for ACE V(G) Unlevered are 11.8% and 8.9%, respectively. The gross and net MoIC for ACE V (G) Unlevered are 1.4x and 1.3x, respectively. The gross and net IRR for ACE V (G) Levered are 15.5% and 11.1%, respectively. The gross and net MoIC for ACE V (G) Levered are 1.5x and 1.4x, respectively. The gross and net IRR for ACE V (D) Levered are 14.6% and 10.9%, respectively. The gross and net MoIC for ACE V (D) Levered are 1.5x and 1.4x, respectively. The gross and net IRR for ACE V (Y) Unlevered are 11.9% and 8.8%, respectively. The gross and net MoIC for ACE V (Y) Unlevered are 1.4x and 1.3x, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of the fund’s closing. All other values for ACE V Unlevered and ACE V Levered are for the combined levered and unlevered parallel funds and are converted to U.S. Dollars at the prevailing quarter-end exchange rate.
41 Investment Group Highlights and Fund Performance Endnotes (cont'd) Real Assets Group (cont’d) 8) Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. 9) 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. Gross returns do not reflect the deduction of management fees, incentive fees, as applicable, or other expenses. Net returns are calculated by subtracting the applicable management fees, incentive fees, as applicable and other expenses from the gross returns on a quarterly basis. 10) For the real estate funds (excluding EIP II), USPF IV and EIF V, realized value represents distributions of operating income, interest income, other fees and proceeds from realizations of interests in portfolio investments. For IDF V, IDF IV and EIP II, realized proceeds include distributions of operating income, sales and financing proceeds received to the limited partners. Realized value excludes any proceeds related to bridge financings. 11) For the real estate funds (excluding EIP II), USPF IV and EIF V, the unrealized value represents the fair value of remaining investments. For IDF V, IDF IV and EIP II, 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. 12) For the real estate funds (excluding EIP II), USPF IV and EIF V, 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 IDF V, IDF IV and EIP II, 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 funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. 13) 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 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, carried interest, as applicable, credit facility interest expense, as applicable, and other expenses. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. 17) EF IV is made up of two parallel funds, one denominated in U.S. Dollars and one denominated in Euros. The gross and net MoIC presented in the table are for the Euro denominated parallel fund. The gross and net MoIC for the U.S. Dollar denominated parallel fund are 1.5x and 1.3x, respectively. The gross and net IRR for the U.S. Dollar denominated parallel fund are 13.3% and 9.6%, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of fund’s closing. All other values for EF IV are for the combined fund and are converted to U.S. Dollars at the prevailing quarter-end exchange rate. 18) EPEP II is made up of dual currency investors and Euro currency investors. The gross and net MoIC and gross and net IRR presented in the table are for dual currency investors as dual currency investors represent the largest group of investors in the fund. Multiples exclude foreign currency gains and losses since dual currency investors fund capital contributions and receive distributions in local deal currency (GBP or EUR) and therefore, do not realize foreign currency gains or losses. The gross and net IRRs for the Euro currency investors, which include foreign currency gains and losses, are 8.6% and 4.5%, respectively. The gross and net MoIC for the Euro currency investors are 1.2x and 1.1x, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of fund’s closing. All other values for EPEP II are for the combined fund and are converted to U.S. Dollars at the prevailing quarter-end exchange rate. 19) EF V is made up of two parallel 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 parallel fund. The gross and net MoIC for the U.S. Dollar denominated parallel fund are 1.3x and 1.2x, respectively. The gross and net IRR for the U.S. Dollar denominated parallel fund are 7.9% and 5.4%, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of fund’s closing. All other values for EF V are for the combined fund and are converted to U.S. Dollars at the prevailing quarter-end exchange rate. 20) IDF IV is made up of U.S. Dollar hedged, U.S. Dollar unhedged, Euro unhedged, Yen hedged parallel funds and a single investor U.S. Dollar parallel fund. The gross and net IRR and MoIC presented in the table are for the U.S. Dollar hedged parallel fund. The gross and net IRR for the U.S. Dollar unhedged parallel fund are 5.7% and 4.4%, respectively. The gross and net MoIC for the U.S. Dollar unhedged parallel fund are 1.2x and 1.1x, respectively. The gross and net IRR for the Euro unhedged parallel fund are 4.8% and 3.5%, respectively. The gross and net MoIC for the Euro unhedged parallel fund are 1.2x and 1.1x, respectively. The gross and net IRR for the Yen hedged parallel fund are 2.0% and 0.8%, respectively. The gross and net MoIC for the Yen hedged parallel fund are 1.1x and 1.0x, respectively. The gross and net IRR for the single investor U.S. Dollar parallel fund are 4.3% and 3.1%, respectively. The gross and net MoIC for the single investor U.S. Dollar parallel fund are 1.1x and 1.1x, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of fund’s closing. All other values for IDF IV are for the combined fund and are converted to U.S. Dollars at the prevailing quarter-end exchange rate. 21) EIP II is a Euro-denominated fund. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of fund’s closing. All other values for EIP II are converted to U.S. Dollars at the prevailing quarter-end exchange rate. 14) For the real estate funds (excluding EIP II), USPF IV and EIF V, the gross IRR is an annualized since inception gross internal rate of return of cash flows to and from investments and the residual value of the investments at the end of the measurement period. Gross IRRs reflect returns to all partners. For the real estate funds (excluding EIP II), cash flows used in the gross IRR calculation are assumed to occur at quarter-end. For USPF IV and EIF V, cash flows used in the gross IRR calculation are assumed to occur at month-end. The gross IRRs are calculated before giving effect to management fees, carried interest as applicable, and other expenses. For IDF V, IDF IV and EIP II, 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, 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. 15) 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. 16) IDF V is made up of U.S. Dollar hedged, Euro unhedged, GBP hedged, Yen hedged, and single investor parallel funds. The gross and net IRR and MoIC presented in the table are for the U.S. Dollar hedged parallel fund. The gross and net IRR for the single investor U.S. Dollar parallel fund are 11.6% and 9.2%, respectively. The gross and net MoIC for the single investor U.S. Dollar parallel fund are 1.3x and 1.2x, respectively. The gross and net IRR for the Euro unhedged parallel fund are 10.9% and 8.1%, respectively. The gross and net MoIC for the Euro unhedged parallel fund are 1.3x and 1.2x, respectively. The gross and net IRR for the GBP hedged parallel fund are 12.2% and 9.3%, respectively. The gross and net MoIC for the GBP hedged parallel fund are 1.3x and 1.2x, respectively. The gross and net IRR for the Yen hedged parallel fund are 8.6% and 6.1%, respectively. The gross and net MoIC for the Yen hedged parallel fund are 1.2x and 1.1x, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of fund’s closing. All other values for IDF V are for the combined fund and are converted to U.S. Dollars at the prevailing quarter-end exchange rate.
42 Private Equity Group 1) The Private Equity Group had ~90 investment and investor relations professionals, ~110 portfolio companies and ~60 active funds as of December 31, 2025. 2) Catch-up fees reflect the management fees generated between the fund’s initial close date and the last day of the quarter prior to the new limited partner’s commitment. Year-to-date catch-up fees are calculated based on commitments prior to FY-25 and quarter-to-date catch-up fees are calculated based on commitments prior to Q4-25, resulting in higher catch-up fees for the quarter-to-date period. 3) All returns are gross fund-level time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments, and also reflect the deduction of all trading expenses. Gross time-weighted returns do not reflect the deduction of management fees, carried interest, or other expenses, as applicable, while net time-weighted returns are after giving effect to these items. We believe aggregated performance returns reflect overall quarterly performance returns in a strategy, but are not necessarily investable funds or products themselves. Additional information for performance by strategy is as follows: • Performance for the corporate private equity strategy is represented by the composite made up of ACOF V and ACOF VI. The net fund-level returns were (0.6)% for Q4-25 and 2.6% for FY-25. 4) 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. 5) 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. 6) 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 are also calculated before giving effect to any bridge financings. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. 7) The net MoIC is calculated at the fund-level. The net MoIC 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 performance fees. The net MoIC is after giving effect to management fees, carried interest, as applicable, and other expenses. The net MoICs are also calculated before giving effect to any bridge financings. Inclusive of bridge financings, the net MoIC would be 1.8x for ACOF IV, 1.2x for ACOF V, 1.4x for ACOF VI and 0.6x for AEOF. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. Investment Group Highlights and Fund Performance Endnotes (cont'd) 8) 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 IRRs reflect 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, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The gross IRRs are also calculated before giving effect to any bridge financings. 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. 9) 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 calculation are based on the actual dates of the cash flows. The net IRRs are calculated after giving effect to management fees, carried interest as applicable, and other expenses and exclude commitments by the general partner and Schedule I investors who do not pay either management fees or carried interest. 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. The net IRRs are also calculated before giving effect to any bridge financings. Inclusive of bridge financings, the net IRRs would be 13.6% for ACOF IV, 4.5% for ACOF V, 15.5% for ACOF VI and (10.5)% for AEOF. Secondaries Group 1) The Secondaries Group had ~110 investment and investor relations professionals, ~1,000 underlying limited partnership interests and ~90 active funds as of December 31, 2025. 2) Catch-up fees reflect the management fees generated between the fund’s initial close date and the last day of the quarter prior to the new limited partner’s commitment. Year-to-date catch-up fees are calculated based on commitments prior to FY-25 and quarter-to-date catch-up fees are calculated based on commitments prior to Q4-25, resulting in higher catch-up fees for the quarter-to-date period. 3) 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. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. Additional information related to APMF can be found in its filings with the SEC, which are not part of this report. 4) Gross time-weighted returns do not reflect the deduction of management fees, carried interest, or other expenses, as applicable, while net time-weighted returns are after giving effect to these items. For all funds in the Secondaries Group, returns are calculated from results of the underlying portfolio that are generally reported on a three month lag and may not include the impact of economic and market activities occurring in the current reporting period. Additional information for performance by strategy is as follows: • Performance for the private equity secondaries is represented by the composite made up of LEP XVI and LEP XVII. The net returns were (0.4)% for Q4-25 and 1.1% for FY-25. • Performance for the real estate secondaries is represented by the composite made up of LREF VIII and LREF IX. The net returns were 0.7% for Q4-25 and 4.9% for FY-25. 5) Since inception returns are annualized. 6) Realized value represents the sum of all cash distributions to all limited partners and if applicable, exclude tax and incentive distributions made to the general partner. 7) Unrealized value represents the limited partners’ share of 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. 8) The gross MoIC is calculated at the fund-level and is based on the interests of all partners. If applicable, limiting the gross MoIC to exclude interests attributable to the non-fee paying limited partners and/or the general partner who does not pay management fees or carried interest would have no material impact on the result. 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 funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documentation. The gross fund-level MoIC would have generally been lower had such fund called capital from its partners instead of utilizing the credit facility.
43 Secondaries Group (cont’d) 9) 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 other expenses, carried interest and credit facility interest expense, as applicable. The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documentation. The net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. 10) 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 all partners. If applicable, limiting the gross IRR to exclude interests attributable to the non-fee paying limited partners and/or the general partner who does not pay management fees or carried interest would have no material impact on the result. 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, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documents. The gross fund-level IRR would generally have been lower had such fund called capital from its partners instead of utilizing the credit facility. 11) 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 who 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 other expenses, carried interest and credit facility interest expenses, as applicable. The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documents. Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. 12) The results of the fund are presented on a combined basis with the affiliated parallel funds or accounts, given that the investments are substantially the same. Software Exposure Total investment exposure to the software industry represents 6% of total AUM and less than 9% of private credit AUM. Private credit AUM includes our Credit Group AUM, excluding our liquid credit AUM, and adding our real estate debt and infrastructure debt AUM. Investment Group Highlights and Fund Performance Endnotes (cont'd)
44 Glossary Ares Operating Group Entities Ares Operating Group entities or an “AOG Entity” refers to, collectively, Ares Holdings L.P. (“Ares Holdings”) and any future entity designated by our board of directors in its sole discretion as an Ares Operating Group entity. Ares Operating Group Unit Ares Operating Group Unit or an “AOG Unit” refers to, collectively, a partnership unit in the Ares Operating Group entities. Assets Under Management Assets Under Management or “AUM” generally refers to the assets we manage. For our funds other than those noted below, our AUM represents the sum of the net asset value (“NAV”) of such funds, the drawn and undrawn debt (at the fund-level including amounts subject to restrictions) and uncalled committed capital (including commitments to funds that have yet to commence their investment periods). NAV generally refers to fair value of the assets of the fund less the liabilities of the fund but may represent carrying value of assets and liabilities of funds that are not reported at fair value. For the CLOs we manage, our AUM is equal to initial principal of collateral adjusted for paydowns. For Real Assets funds that we manage where management fees are based on gross asset value, net operating income or similar metrics including their equivalents (“GAV”), our AUM represents the sum of the GAV of such funds, undrawn debt (including any amounts subject to restrictions) and uncalled committed capital (including commitments to funds that have yet to commence their investment periods). GAV typically refers to the fair value of a fund’s total assets. AUM also includes the proceeds raised in the initial public offerings of special purpose acquisition companies (“SPACs”) sponsored by us, less any redemptions. AUM Not Yet Paying Fees AUM Not Yet Paying Fees (also referred to as “shadow AUM”) refers to AUM that is not currently paying fees and is eligible to earn management fees upon deployment. Available Capital Available Capital (also referred to as “dry powder”) is comprised of uncalled committed capital and undrawn amounts under credit facilities and may include AUM that may be canceled or not otherwise available to invest. Consolidated Funds Consolidated Funds refers collectively to certain Ares funds, co-investment vehicles, CLOs and SPACs that are required under GAAP to be consolidated in our consolidated financial statements. Dividend Policy In the normal course of business, we expect to pay dividends to our Class A and non-voting common stockholders that are aligned with our expected annual fee related earnings after an allocation of current taxes paid. For the purpose of determining this amount, we allocate the total current taxes paid between FRE and realized incentive and investment income in a manner that is expected to be disproportionate to earnings generated by these metrics and the actual taxes paid on these metrics should they be measured separately. Additionally, our methodology uses the tax benefits from certain expenses that are not included in these non-GAAP metrics, such as equity-based compensation from the vesting of restricted units, and the exercise of stock options and from the amortization of intangible assets, among others. The portion of the current tax allocated to performance and net investment income is calculated by multiplying the statutory tax rate currently in effect by the realized performance and net investment income attributable to the Company. We subtract this amount from the total current tax and the remainder is allocated to FRE. We use this method to allocate the portion of the current income tax provision to FRE to approximate the amount of cash that is available to pay dividends to our stockholders. If cash flows from FRE were insufficient to fund dividends over a sustained period of time, we expect that we would reduce dividends or suspend paying such dividends. Accordingly, there is no assurance that dividends would continue at the current levels or at all. Effective Management Fee Rate Effective management fee rate represents annualized management fees divided by the average fee paying AUM for the period, excluding the impact of catch-up fees. Fee Paying AUM Fee Paying AUM or “FPAUM” refers to the AUM from which we directly earn management fees. FPAUM is equal to the sum of all the individual fee bases of our funds that directly contribute to our management fees. For our funds other than CLOs, our FPAUM represents the amount of limited partner capital commitments for certain closed-end funds within the reinvestment period, the amount of limited partner invested capital for the aforementioned closed-end funds beyond the reinvestment period and the portfolio value, GAV or NAV. For the CLOs we manage, our FPAUM is equal to the gross amount of aggregate collateral balance, at par, adjusted for defaulted or discounted collateral. Fee Related Earnings Fee Related Earnings or “FRE”, a non-GAAP measure that is a component of Realized Income, is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees and fee related performance revenues, is sufficient to cover operating expenses and to generate profits. FRE differs from income before taxes computed in accordance with GAAP as FRE excludes net performance income, investment income from our funds and adjusts for certain other items that we believe are not indicative of our core operating performance. Fee related performance revenues, together with fee related performance compensation, is presented within FRE because it represents incentive fees from perpetual capital vehicles that are measured and eligible to be received on a recurring basis and are not dependent on realization events from the underlying investments. Fee Related Earnings Margin Fee related earnings margin represents the quotient of fee related earnings and the sum of segment management fees, fee related performance revenues and other fees.
45 Fee Related Performance Revenues Fee Related Performance Revenues refers to performance revenues from perpetual capital vehicles that are: (i) measured and eligible to be received on a recurring basis; and (ii) not dependent on realization events from the underlying investments. Certain vehicles are subject to hold back provisions that limit the amounts paid in a particular year. Such hold back amounts may be paid in subsequent years, subject to their extended performance conditions. Gross Capital Deployment Gross Capital Deployment refers to the aggregate amount of capital invested by our funds during a given period, and includes investments made by our drawdown funds and perpetual capital vehicles and new capital raised and invested by our open-ended managed accounts, sub-advised accounts and CLOs, but excludes capital that is reinvested (after receiving repayments of capital) by our open-ended managed accounts, sub-advised accounts and CLOs. Incentive Eligible AUM Incentive Eligible AUM or “IEAUM” generally refers to the AUM of our funds and other entities from which carried interest and incentive fees may be generated, regardless of whether or not they are currently generating carried interest and incentive fees. It generally represents the NAV plus uncalled equity or total assets plus uncalled debt, as applicable, of our funds for which we are entitled to receive carried interest and incentive fees, excluding capital committed by us and our professionals (from which we generally do not earn carried interest and incentive fees), as well as proceeds raised in the initial public offerings of SPACs sponsored by us, less any redemptions. With respect to the AUM of certain publicly-traded and perpetual wealth vehicles that generate Part II Fees, only Part II Fees may be generated from IEAUM. Incentive Generating AUM Incentive Generating AUM or “IGAUM” refers to the AUM of our funds and other entities that are currently generating carried interest and incentive fees on a realized or unrealized basis. It generally represents the NAV or total assets of our funds, as applicable, for which we are entitled to receive carried interest and incentive fees, excluding capital committed by us and our professionals (from which we generally do not earn carried interest and incentive fees). Certain publicly-traded and perpetual wealth vehicles that generate Part II Fees are only included in IGAUM when Part II Fees are being generated. Management Fees Management Fees refers to fees we earn for advisory services provided to our funds, which are generally based on a defined percentage of fair value of assets, total commitments, invested capital, GAV, NAV, net investment income, total assets or par value of the investment portfolios managed by us. Management fees include Part I Fees, a quarterly fee based on the net investment income of certain funds. Net Inflows of Capital Net Inflows of Capital refers to net new commitments during the period, including equity and debt commitments and gross inflows into our open-ended managed accounts and sub-advised accounts, as well as new debt and equity issuances by our publicly-traded vehicles minus redemptions from our open-ended funds, managed accounts and sub-advised accounts. Operations Management Group In addition to our reportable segments, we have an Operations Management Group (the “OMG”) that consists of shared resource groups to support our reportable segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, strategy and relationship management, legal, compliance and human resources. The OMG includes Ares Wealth Management Solutions, LLC (“AWMS”) that facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel. The OMG’s revenues and expenses are not allocated to our reportable segments but we consider the cost structure of the OMG when evaluating our financial performance. Our management uses this information to assess the performance of our reportable segments and OMG, and we believe that this information enhances the ability of stockholders to analyze our performance. Our Funds Our Funds refers to the funds, alternative asset companies, trusts, co-investment vehicles and other entities and accounts that are managed or co-managed by the Ares Operating Group, and which are structured to pay fees. It also includes funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation (NASDAQ: ARCC) (“ARCC”) and an SEC-registered investment adviser. Part I Fees Part I Fees refers to a quarterly fee on the net investment income of certain publicly-traded or perpetual wealth vehicles. Such fees are classified as management fees as they are predictable and recurring in nature, not subject to contingent repayment and generally cash-settled each quarter, unless subject to a payment deferral. Part II Fees Part II Fees refers to fees from certain publicly-traded or perpetual wealth vehicles that are paid in arrears as of the end of each calendar year when the respective cumulative aggregate realized capital gains exceed the cumulative aggregate realized capital losses and aggregate unrealized capital depreciation, less the aggregate amount of respective Part II Fees paid in all prior years since inception. Performance Income Performance Income refers to income we earn based on the performance of a fund that is generally based on certain specific hurdle rates as defined in the fund’s investment management or partnership agreements and may be either incentive fees earned from funds with stated investment periods or carried interest. Glossary (cont'd)
46 Glossary (cont'd) Perpetual Capital Perpetual Capital refers to the AUM of publicly-traded, perpetual wealth vehicles, commingled funds and managed accounts that have an indefinite term, are not in liquidation, and for which there is no immediate requirement to return invested capital to investors upon the realization of investments. Perpetual Capital - Managed Accounts refers to managed accounts for single investors primarily in illiquid strategies that meet the perpetual capital criteria. Perpetual Capital - Private Commingled Funds refers to commingled funds that meet the perpetual capital criteria, not including our publicly-traded or perpetual wealth vehicles. Perpetual capital may be withdrawn by investors under certain conditions, including through an election to redeem an investor’s fund investment or to terminate the investment management agreement, which in certain cases may be terminated on 30 days’ prior written notice. In addition, the investment management or advisory agreements of certain of our publicly-traded and perpetual wealth vehicles have one year terms, which are subject to annual renewal by such vehicles. Realized Income Realized Income or “RI”, a non-GAAP measure, is an operating metric used by management to evaluate performance of the business based on operating performance and the contribution of each of the business segments to that performance, while removing the fluctuations of unrealized income and losses, which may or may not be eventually realized at the levels presented and whose realizations depend more on future outcomes than current business operations. RI differs from income before taxes by excluding: (i) operating results of our Consolidated Funds; (ii) depreciation and amortization expense; (iii) the effects of changes arising from corporate actions; and (iv) unrealized gains and losses related to carried interest, incentive fees and investment performance; and adjusting for certain other items that we believe are not indicative of our operating performance. Changes arising from corporate actions include equity-based compensation expenses, the amortization of intangible assets, transaction costs associated with mergers, acquisitions and capital activities, underwriting costs and expenses incurred in connection with corporate reorganization. Placement fee adjustment represents the net portion of either expense deferral or amortization of upfront fees to placement agents that is presented to match the timing of expense recognition with the period over which management fees are expected to be earned from the associated fund for segment purposes but have been expensed in advance in accordance with GAAP. For periods in which the amortization of upfront fees for segment purposes is higher than the GAAP expense, the placement fee adjustment is presented as a reduction to RI. After-tax RI is RI less the current income tax provision. For this purpose, the current income tax provision represents the sum of (i) taxes paid or payable as reflected in the Company’s GAAP financial statements for the period and (ii) amounts payable under the Tax Receivable Agreement for which a tax benefit was included in the current period provision. The current income tax provision reflects the tax benefits associated with deductions available to the Company on certain expense items that have been excluded from the underlying calculation of RI, such as equity-based compensation deductions. If tax deductions related to the vesting of restricted units and exercise of stock options were excluded, the resulting current income tax provision and the implied tax rate would be higher, which would reduce After-tax RI. The assumptions applied in calculating our current income tax provision as presented under U.S. GAAP and in determining After-tax RI are consistent. Management believes that utilizing the current income tax provision, calculated as described above, in determining After-tax RI is meaningful because it increases comparability between periods and more accurately reflects amounts that are available for distribution to stockholders.
