Slides
Page 1
Past performance is not indicative of future results. Ares Management Corporation Reports Second Quarter 2026 Results NEW YORK--Ares Management Corporation (NYSE:ARES) today reported its financial results for its second quarter ended June 30, 2026. GAAP net income attributable to Ares Management Corporation was $150.6 million for the quarter ended June 30, 2026. On a basic and diluted basis, net income attributable to Ares Management Corporation per share of Class A and non-voting common stock was $0.49 for the quarter ended June 30, 2026. After-tax realized income was $467.6 million for the quarter ended June 30, 2026. After-tax realized income per share of Class A common stock was $1.29 for the quarter ended June 30, 2026. Fee related earnings were $491.1 million for the quarter ended June 30, 2026. “We generated strong second-quarter results, including another record quarter of fundraising with more than $36 billion of inflows as our clients continue to reward us due to our strong and consistent fund performance across our strategies,” said Michael Arougheti, Chief Executive Officer of Ares. “Our diverse global origination platform enabled us to remain active investing in attractive opportunities across the platform in a slower transaction environment and we are now seeing a meaningful pickup in our firmwide investment pipeline.” Common Stock Dividend Ares declared a quarterly dividend of $1.35 per share of its Class A and non-voting common stock, payable on September 30, 2026 to its Class A and non-voting common stockholders of record at the close of business on September 16, 2026. Preferred Stock Dividend Ares declared a quarterly dividend of $0.84375 per share of its 6.75% Series B mandatory convertible preferred stock, payable on October 1, 2026 to its preferred stockholders of record at the close of business on September 15, 2026. Dividend Reinvestment Program Ares has a Dividend Reinvestment Program for its Class A common stockholders that will be effective for the quarterly dividend on September 30, 2026. Equiniti Trust Company is engaged to administer the plan on behalf of Ares. Additional information can be located on the Investor Resources section of our website. Additional Information Ares issued a full detailed presentation of its second quarter 2026 results, which can be viewed at www.ares.com on the Investor Resources section of our home page under Events and Presentations. The presentation is titled “Second Quarter 2026 Earnings Presentation.”
Page 2
Past performance is not indicative of future results. Conference Call and Webcast Information Ares will host a conference call on July 31, 2026 at 9:00 a.m. (Eastern Time) to discuss second quarter results. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of our website at http://www.ares.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing +1 (800) 267-6316. International callers can access the conference call by dialing +1 (203) 518-9783. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected and to reference the conference ID ARESQ226. For interested parties, an archived replay of the call will be available through August 31, 2026 to domestic callers by dialing +1 (800) 839-5676 and to international callers by dialing +1 (402) 220-2565. An archived replay will also be available through August 31, 2026 on a webcast link located on the Home page of the Investor Resources section of our website. About Ares Management Corporation Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to advance our stakeholders’ long-term goals by providing flexible capital that supports businesses and creates value for our investors and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of June 30, 2026, Ares Management Corporation’s global platform had over $671 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit www.ares.com. Forward-Looking Statements Statements included herein contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which reflect our current views with respect to, among other things, future events, operations and financial performance. You can identify these forward-looking statements 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. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Actual results may vary materially from those indicated in these forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Ares Management Corporation does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities of Ares or an investment fund managed by Ares or its affiliates. Investor Relations Contacts Greg Mason Carl Drake gmason@ares.com cdrake@ares.com (800) 340-6597 (800) 340-6597
Page 3
Earnings Presentation Second Quarter 2026
Page 4
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 or 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 and acronyms used in this presentation, please refer to the “Glossary” slides. The results contained in this presentation are made as of June 30, 2026, 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.
Page 5
3 Q2-26 Financial Results Assets Under Management Corporate Actions Recent Developments Second Quarter 2026 Highlights 1) Unconsolidated management fees includes $21.6 million from Consolidated Funds that are eliminated upon consolidation for GAAP for Q2-26 and excludes management fees attributable to certain joint venture partners. Unconsolidated other fees represents $92.0 million for Q2-26 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 $671.3 billion • Total Fee Paying AUM (“FPAUM”) of $409.9 billion • Available Capital of $170.0 billion • AUM Not Yet Paying Fees available for future deployment of $92.6 billion and development assets not yet stabilized of $4.1 billion • Raised $36.4 billion, with net inflows of capital2 of $34.4 billion • Capital deployment of $35.9 billion, including $15.2 billion by our drawdown funds • Declared quarterly dividend of $1.35 per share of Class A and non-voting common stock, which is payable on September 30, 2026 to stockholders of record as of September 16, 2026 • Declared quarterly dividend of $0.84375 per share of Series B mandatory convertible preferred stock, which is payable on October 1, 2026 to preferred stockholders of record as of September 15, 2026 • GAAP net income attributable to Ares Management Corporation of $150.6 million • GAAP basic and diluted earnings per share of Class A and non-voting common stock of $0.49 • GAAP management fees of $1,017.6 million • Unconsolidated management fees and other fees of $1,122.0 million1 • Fee related performance revenues of $40.5 million • Fee Related Earnings of $491.1 million • Realized Income of $521.5 million • After-tax Realized Income of $1.29 per share of Class A and non-voting common stock • On July 1, 2026, Ares Acquisition Corporation III (NYSE: AAC), our third sponsored SPAC, consummated its initial public offering and generated gross proceeds of $395.0 million
Page 6
4 Three months ended June 30, Six months ended June 30, $ in thousands, except share data 2026 2025 2026 2025 Revenues Management fees $1,017,563 $900,622 $2,007,090 $1,717,609 Carried interest allocation 249,914 323,901 396,545 483,909 Incentive fees 42,753 23,079 204,687 55,127 Principal investment income 2,288 10,963 2,765 32,961 Administrative, transaction and other fees 116,092 91,563 213,959 149,327 Total revenues 1,428,610 1,350,128 2,825,046 2,438,933 Expenses Compensation and benefits 688,660 643,709 1,381,067 1,300,834 Performance related compensation 231,927 234,706 460,263 357,339 General, administrative and other expenses 255,715 232,156 496,152 460,070 Expenses of Consolidated Funds 3,675 27,007 10,958 33,663 Total expenses 1,179,977 1,137,578 2,348,440 2,151,906 Other income (expense) Net realized and unrealized gains on investments 72,710 12,708 76,099 12,976 Interest and dividend income 6,522 7,772 13,621 25,428 Interest expense (52,195) (43,575) (102,955) (79,962) Other income (expense), net (21,092) (46,521) 3,468 (57,235) Net realized and unrealized gains on investments of Consolidated Funds 176,396 127,752 310,412 216,158 Interest and other income of Consolidated Funds 59,123 161,890 164,568 321,962 Interest expense of Consolidated Funds (104,155) (145,638) (242,956) (298,378) Total other income, net 137,309 74,388 222,257 140,949 Income before taxes 385,942 286,938 698,863 427,976 Income tax expense 72,977 60,958 132,849 78,495 Net income 312,965 225,980 566,014 349,481 Less: Net income attributable to non-controlling interests in Consolidated Funds 71,241 3,999 100,888 59,976 Net income attributable to Ares Operating Group entities 241,724 221,981 465,126 289,505 Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities 1,845 (274) 732 42 Less: Net income attributable to non-controlling interests in Ares Operating Group entities 89,244 85,193 171,170 105,231 Net income attributable to Ares Management Corporation 150,635 137,062 293,224 184,232 Less: Series B mandatory convertible preferred stock dividends declared 25,312 25,312 50,625 50,625 Net income attributable to Ares Management Corporation Class A and non-voting common stockholders $125,323 $111,750 $242,599 $133,607 Net income per share of Class A and non-voting common stock Basic $0.49 $0.46 $0.95 $0.48 Diluted $0.49 $0.46 $0.95 $0.48 Weighted-average shares of Class A and non-voting common stock Basic 226,304,870 218,915,599 225,175,788 214,158,085 Diluted 226,304,870 218,915,599 225,175,788 214,158,085 GAAP Statements of Operations
Page 7
5 RI and Other Measures Financial Summary Three months ended June 30, Six months ended June 30, $ in thousands, except share data (and as otherwise noted) 2026 2025 % Change 2026 2025 % Change Management fees1 $1,030,016 $900,285 14% $2,031,587 $1,718,661 18% Fee related performance revenues 40,529 16,697 143 60,085 44,748 34 Other fees 91,962 76,118 21 165,929 114,288 45 Compensation and benefits expenses (472,698) (421,472) (12) (921,345) (798,654) (15) General, administrative and other expenses2 (198,754) (162,517) (22) (380,797) (302,656) (26) Fee Related Earnings 491,055 409,111 20 955,459 776,387 23 Realized net performance income 50,903 16,483 209 126,239 57,515 119 Investment income—realized 28,683 12,240 134 40,463 23,935 69 Net interest expense (49,140) (40,020) (23) (97,924) (54,099) (81) Realized Income 521,501 397,814 31 1,024,237 803,738 27 After-tax Realized Income3 $467,569 $367,888 27 $919,985 $749,319 23 After-tax Realized Income per share of Class A and non-voting common stock4 $1.29 $1.03 25 $2.53 $2.12 19 Other Data Fee Related Earnings margin 42.2% 41.2% 42.3% 41.3% Effective management fee rate 0.97% 1.00% 0.97% 1.00% 1) Includes Part I Fees of $154.3 million and $128.1 million for Q2-26 and Q2-25, respectively, and $303.3 million and $248.2 million for YTD-26 and YTD-25, respectively. 2) Includes supplemental distribution fees of $19.0 million and $19.3 million for Q2-26 and Q2-25, respectively, and $43.0 million and $36.7 million for YTD-26 and YTD-25, respectively. 3) For Q2-26, Q2-25 and YTD-26, YTD-25, after-tax Realized Income includes current income tax related to: (i) entity level taxes of $15.9 million, $13.8 million and $28.5 million, $22.7 million, respectively, and (ii) corporate level tax expense of $38.0 million, $16.1 million and $75.7 million, $31.8 million, respectively. For more information regarding after-tax RI, please refer to the “Glossary” slides. 4) 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.
Page 8
6 Investment Performance Highlights Gross Returns (%) Q2-26 Q2-26 LTM Credit1 Alternative Credit 4.1 16.4 Opportunistic Credit 2.4 8.9 U.S. Senior Direct Lending 2.5 11.2 U.S. Junior Direct Lending 0.2 8.9 European Direct Lending 1.5 8.3 APAC Credit 2.4 19.0 Real Assets1 Americas Real Estate Equity 0.6 3.1 European Real Estate Equity 0.2 2.5 Infrastructure Equity 9.0 9.8 Infrastructure Debt 1.7 7.5 Secondaries APMF (Net Returns)1 6.9 16.2 Private Equity Secondaries2 (5.3) (1.7) Real Estate Secondaries2 (1.2) 5.6 Infrastructure Secondaries2 (0.4) 14.6 Private Equity1 Corporate Private Equity 2.4 1.6 Note: Past performance is not indicative of future results. Please refer to the endnotes on slides 39-43 for additional information.
Page 9
7 $ in billions Q2-26 Primary Activities Credit Group Alternative Credit $9.1 • Final equity commitments of $8.5 billion to Pathfinder III U.S. Direct Lending 8.9 • Capital raised of $4.7 billion by our business development companies (“BDCs”) and affiliates, including $2.6 billion by ARCC and its affiliates and $2.1 billion by ASIF and its affiliates • Debt and equity commitments to various funds, including debt commitments of $1.4 billion to SDL III, debt commitments of $0.3 billion and equity commitments of $0.1 billion to our open-ended sports, media and entertainment opportunities fund European Direct Lending 3.4 • Capital raised of $1.0 billion by our open-ended European direct lending fund • Debt and equity commitments to various funds, including debt commitments of $0.6 billion to ACE V Liquid Credit 1.8 • Equity and debt commitments to various funds • Debt commitments of $0.5 billion to a new U.S. CLO APAC Credit 0.5 • Equity commitments of $0.3 billion to our seventh Asian special situations fund Total Credit Group $23.7 Real Assets Group Real Estate $6.4 • Equity and debt commitments to various funds, including: ◦ Debt commitments of $1.9 billion and equity commitments of $1.0 billion to real estate debt funds ◦ Equity commitments of $1.6 billion and debt commitments of $0.2 billion to our fifth Japanese industrial real estate development fund • Capital raised of $0.8 billion by our U.S. open-ended industrial real estate equity fund, $0.6 billion by our diversified non-traded REIT and $0.1 billion by our industrial non-traded REIT Infrastructure 3.3 • Capital raised of $2.3 billion by our open-ended infrastructure fund • Equity commitments to various funds Total Real Assets Group $9.7 Secondaries Group Private Equity Secondaries $1.6 • Capital raised of $0.5 billion by APMF • Equity commitments to various funds Real Estate Secondaries 0.1 • Equity commitments to various funds Total Secondaries Group $1.7 Other Businesses Insurance $1.3 • Additional managed assets Total Other Businesses $1.3 Total $36.4 Gross Fundraising1 1) Fundraising represents equity and debt commitments and gross inflows into our open-ended managed accounts, publicly-traded and perpetual wealth funds. Commitments denominated in currencies other than U.S. dollar have been converted at the prevailing quarter-end exchange rate.
Page 10
8 Q2-25 Q1-26 Q2-26 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 June 30, 2026 was $671.3 billion, an increase of 17% from prior year • The increase of $98.9 billion was primarily driven by: – commitments to our drawdown funds, primarily across the alternative credit, U.S. and European direct lending and real estate strategies; – capital raised by our perpetual capital vehicles, primarily our credit BDCs, our open-ended infrastructure fund, our open-ended European direct lending fund and APMF; and – additional managed assets from our insurance platform FPAUM Q2-25 Q1-26 Q2-26 Credit Real Assets Secondaries Private Equity Other Businesses ($ in billions) AUM $377.1 $23.8 $129.8 $33.9 $7.8 $572.4 $644.3 $11.0 $42.6 $143.4 $24.7 $349.6 $24.5 $11.0 $6.4 $79.5 $228.2 $7.9 $266.1 $30.2 $14.2 $87.1 $399.6 $422.6 $440.5 $151.2 $24.5 $44.2 $10.9 $260.2 $88.6 $13.9 $31.5 $9.8 $671.3 $409.9 FPAUM as of June 30, 2026 was $409.9 billion, an increase of 17% from prior year • The increase of $60.3 billion was primarily driven by: – the deployment of capital by our drawdown funds, primarily across the U.S. and European direct lending, alternative credit and credit secondaries strategies; – capital raised by our perpetual capital vehicles, primarily our credit BDCs, our open- ended infrastructure fund, our open-ended European direct lending fund and APMF; and – additional managed assets from our insurance platform ($ in billions)
Page 11
9 Q2-25 Q1-26 Q2-26 $3.3 Perpetual Capital Perpetual Capital AUM Perpetual Capital as of June 30, 2026 was $223.3 billion, an increase of 34% from prior year • The increase of $56.7 billion was primarily driven by: – capital raised by our credit BDCs, our open-ended infrastructure fund, our open-ended European direct lending fund, APMF and our diversified non-traded REIT; – commitments to our open-ended core alternative credit fund and our U.S. open-ended industrial real estate equity fund; and – additional managed assets from our insurance platform Perpetual Capital by Type ($ in billions) ($ in billions) Credit Real Assets Secondaries Other Businesses $10.8 $5.5 $7.1 $113.2 $151.3 $43.0 $47.7 $166.6 $215.3 Q2-25 Q1-26 Q2-26 $215.3 $58.6 $72.0 $38.6 $46.1 $46.8$166.6 $43.0 $50.5 $27.5 $45.6 $153.8 $52.5 $6.2 $10.8 $223.3 $38.5 $76.5 $61.5 $223.3 Publicly-Traded Funds Perpetual Wealth Funds Private Commingled Funds Managed Accounts
Page 12
10 11% 9% 7% 6% 51% 16% 21% 8% 20% 5% 40% 6% AUM and Management Fees by Type 84% 1) Long-dated funds generally have a contractual life of five years or more at inception. For the quarter ended June 30, 2026: • 84% of assets under management were perpetual capital or long-dated funds • 94% of management fees were earned from perpetual capital or long-dated funds AUM by Type Management Fees by Type 94% Perpetual Capital - Publicly-Traded Funds Perpetual Capital - Perpetual Wealth Funds Perpetual Capital - Private Commingled Funds Perpetual Capital - Managed Accounts Long-Dated Funds1 Other
Page 13
11 Q2-25 Q1-26 Q2-26 Available Capital and AUM Not Yet Paying Fees Available Capital as of June 30, 2026 was $170.0 billion, an increase of 13% from prior year • The increase of $19.2 billion was primarily driven by: – commitments to our alternative credit, real estate, private equity secondaries and infrastructure strategies Available Capital AUM Not Yet Paying Fees Q2-25 Q1-26 Q2-26 ($ in billions) ($ in billions) Credit Real Assets Secondaries Private Equity Other Businesses $0.6 $103.1 $4.2 $32.4 $10.5 $14.4 $35.1 $4.7 $103.9 $170.0 $14.1 $39.0 $4.7 $112.2 $78.4 $3.4 $17.8 $5.2 $104.8 $101.7 $6.1 $20.4 $1.2 $74.0 $114.0 $6.2 $23.8 $1.1 $82.9 $150.8 $158.1 AUM Not Yet Paying Fees as of June 30, 2026 was $114.0 billion, an increase of 9% from prior year • The increase of $9.2 billion was primarily driven by: – commitments to our alternative credit, real estate and infrastructure strategies, partially offset by net deployment in our U.S. and European direct lending strategies
Page 14
12 $71.1 $16.2 $4.9 $0.4 $92.6 $15.6 $4.1 $1.7 AUM Not Yet Paying Fees Available for Future Deployment AUM Not Yet Paying Fees As of June 30, 2026, AUM Not Yet Paying Fees includes $92.6 billion of AUM available for future deployment 1 and $4.1 billion of development assets not yet stabilized 2 that could collectively generate approximately $828.2 million in potential incremental annual management fees • The $92.6 billion of AUM Not Yet Paying Fees available for future deployment primarily includes $29.1 billion in U.S. direct lending funds, $16.7 billion in alternative credit funds, $15.0 billion in European direct lending funds, $10.0 billion in real estate funds, $6.5 billion in opportunistic credit funds, $6.2 billion in infrastructure funds, $3.1 billion in APAC credit funds and $2.5 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 June 30, 2026 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 $807.4 million in potential incremental annual management fees. Reference to the $807.4 million includes approximately $26.7 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 June 30, 2026. Note that no potential Part I Fees are reflected in any of the amounts above. 2) Development assets not yet stabilized includes real estate fund assets that are in the development stage as well as capital available to be committed to future development projects. Upon completion of development, management fees generally increase with a change in fee base, in fee rate or both. As of June 30, 2026, development assets not yet stabilized could generate approximately $20.8 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 investments. As of June 30, 2026, capital available for deployment for follow-on investments could generate approximately $157.7 million in additional potential annual management fees. There is no assurance such capital will be invested. ($ in billions)($ in billions) AUM Not Yet Paying Fees Credit Real Assets Secondaries Private Equity $92.6 $114.0 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 $15.6 $16.2
Page 15
13 Q2-25 Q1-26 Q2-26 $31.2 Incentive Eligible AUM and Incentive Generating AUM ($ in billions) ($ in billions) Credit3 Real Assets3 Secondaries3 Private Equity Other Businesses Total Incentive Generating AUM $106.6 $38.1 $13.9 $8.6 $1.8 $169.0 + Uninvested IEAUM 76.7 14.7 13.9 5.4 — 110.7 + IEAUM below hurdle 4.2 13.9 3.4 6.3 — 27.8 + Part II Fees below hurdle2 40.0 5.0 — — — 45.0 Incentive Eligible AUM $227.5 $71.7 $31.2 $20.3 $1.8 $352.5 Credit Real Assets Secondaries Private Equity Other Businesses 1) Incentive Generating AUM includes $75.7 billion of AUM from funds generating unrealized incentive fees that are 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. 3) Includes $44.3 billion of perpetual capital IGAUM that could generate fee related performance revenues, composed of $24.0 billion within the Credit Group, $14.4 billion within the Real Assets Group and $5.9 billion within the Secondaries Group. Incentive Eligible AUM Incentive Eligible AUM as of June 30, 2026 was $352.5 billion, an increase of 16% from prior year • The increase of $48.7 billion was primarily driven by commitments to funds across our alternative credit, real estate, infrastructure, U.S. and European direct lending, private equity secondaries and opportunistic credit strategies Incentive Generating AUM1 as of June 30, 2026 was $169.0 billion, an increase of 21% from prior year • The increase of $29.9 billion was primarily driven by deployment of capital within real estate funds and credit funds that are generating returns in excess of their hurdle rates as of June 30, 2026 Of the $241.8 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 Q2-26 Incentive Generating to Incentive Eligible AUM Reconciliation $71.7 $1.8 $216.8 $20.3 $64.4 $20.5 $30.3 $205.6 $20.4 $53.1 $303.8 $333.6 $352.5 $22.8 $1.9 $1.6 $227.5
Page 16
14 $23.7 $7.6 $1.9 $0.1 $2.6 Q2-25 Q1-26 Q2-26 Q2-26 Gross Capital Deployment Capital Deployment ($ in billions) (2) Capital Deployment in Drawdown Funds ($ in billions) $8.9 $2.5 $13.0 $11.1 $0.1 $4.0 $17.2 $15.2 $3.3 $10.4 $1.4 Credit Real Assets Secondaries Private Equity Other Businesses $1.2 $35.9 $0.8 $0.9 Total Gross Capital Deployment during Q2-26 was $35.9 billion compared to $26.9 billion during Q2-25 • Deployment by our drawdown funds was $15.2 billion in Q2-26 compared to $13.0 billion in Q2-25 – Of our drawdown funds, the investment strategies with the highest deployment were U.S. and European direct lending, alternative credit and real estate strategies • Deployment by our perpetual capital vehicles was $21.0 billion in Q2-26 compared to $13.0 billion in Q2-25 – Of our perpetual capital vehicles, the investment strategies with the highest deployment were U.S. and European direct lending, alternative credit, infrastructure and insurance strategies $0.8 $0.0
Page 17
15Note: Past performance is not indicative of future results. Please refer to the endnotes on slide 39 for additional information. Credit Group2 $ in thousands Q2-26 Q2-25 % Change YTD-26 YTD-25 % Change Management and other fees $721,308 $630,503 14% $1,421,070 $1,226,497 16% Fee related performance revenues 1,081 314 244 6,337 18,709 (66) Fee Related Earnings $498,453 $426,310 17 $975,889 $834,904 17 Realized Income $543,808 $435,494 25 $1,086,724 $867,433 25 $ in billions Q2-26 Q2-25 % Change Gross Capital Deployment $23.7 $20.6 15% AUM 440.5 377.1 17 FPAUM 266.1 228.2 17 Financial Summary and Highlights • Management and other fees increased by 14% for Q2-26 compared to Q2-25, primarily driven by higher management fees from deployment within our U.S. and European direct lending and alternative credit strategies and by capital raised by our perpetual wealth vehicles • Fee Related Earnings increased by 17% for Q2-26 compared to Q2- 25, primarily driven by the increase in management fees • Realized Income increased by 25% for Q2-26 compared to Q2-25, primarily driven by the increase in Fee Related Earnings and realized net performance income of $47.4 million from ACE V following the end of its investment period in 2025 • Gross Capital Deployment totaled $23.7 billion for Q2-26, primarily consisting of $12.4 billion in U.S. direct lending, $4.4 billion in alternative credit, $4.2 billion in European direct lending and $1.9 billion in liquid credit
Page 18
16Note: Past performance is not indicative of future results. Please refer to the endnotes on slide 40 for additional information. Financial Summary and Highlights Real Assets Group2 • Management fees increased by 15% for Q2-26 compared to Q2-25, primarily from capital raised by our open-ended core infrastructure fund, including Part I Fees, from capital raised by our diversified non-traded REIT and commitments to US XI – Management fees in Q2-25 included catch-up fees of $3.1 million primarily from ACIP II • Other fees increased by 28% for Q2-26 compared to Q2-25, primarily due to leasing fees from our Japanese data center development fund in Q2-26 • Fee Related Earnings increased by 30% for Q2-26 compared to Q2-25, primarily due to the increases in management and other fees • Realized Income increased by 48% for Q2-26 compared to Q2-25, primarily driven by the increase in Fee Related Earnings and realized gains of $23.8 million from the settlement of foreign currency hedges related to capital interests we hold in Japanes e real estate equity funds • Gross Capital Deployment totaled $7.6 billion for Q2-26, consisting of $4.0 billion in real estate and $3.6 billion in infrastructure $ in thousands Q2-26 Q2-25 % Change YTD-26 YTD-25 3 % Change Management fees $202,590 $175,924 15% $399,216 $306,377 30% Other fees 62,318 48,558 28 109,070 69,938 56 Fee related performance revenues 354 147 141 2,955 147 NM Fee Related Earnings $147,188 $113,645 30 $279,157 $187,924 49 Realized Income $144,400 $97,648 48 $255,173 $185,245 38 $ in billions Q2-26 Q2-25 % Change Gross Capital Deployment $7.6 $3.0 153% AUM 151.2 129.8 17 FPAUM 88.6 79.5 12
Page 19
17Note: Past performance is not indicative of future results. Please refer to the endnotes on slide 42 for additional information. Financial Summary and Highlights Secondaries Group3 • Management and other fees increased by 9% for Q2-26 compared to Q2-25, primarily driven by higher management fees from capital raised by APMF – Management fees in Q2-25 included catch-up fees of $3.2 million from ASIS III • Fee related performance revenues increased by 141% for Q2-26 compared to Q2-25, driven by higher incentive fees earned from APMF due to NAV appreciation • Fee Related Earnings increased by 21% for Q2-26 compared to Q2-25, primarily due to the increases in fee related performance r evenues and management fees • Realized Income increased by 23% for Q2-26 compared to Q2-25, primarily driven by the increase in Fee Related Earnings • Gross Capital Deployment totaled $1.9 billion for Q2-26, primarily consisting of $0.8 billion in private equity secondaries, $0.4 billion in real estate secondaries and $0.4 billion in credit secondaries $ in thousands Q2-26 Q2-25 % Change YTD-26 YTD-25 % Change Management and other fees $73,679 $67,444 9% $145,739 $125,216 16% Fee related performance revenues 39,094 16,236 141 50,793 25,892 96 Fee Related Earnings $60,908 $50,537 21 $115,541 $91,121 27 Realized Income $59,697 $48,715 23 $112,895 $88,386 28 $ in billions Q2-26 Q2-25 % Change Gross Capital Deployment $1.9 $1.0 90% AUM 44.2 33.9 30 FPAUM 31.5 24.5 28
Page 20
18 • Management and other fees increased by 7% for Q2-26 compared to Q2-25, primarily driven by management fees from ACOF VII which started generating fees in Q4-25, partially offset by lower fees from ACOF VI due to the step down in fee rate and change in fee base beginning in Q1-26 following the commencement of fees for ACOF VII • Fee Related Earnings increased by 55% for Q2-26 compared to Q2-25, primarily due to lower operating expenses and the increase in management fees • Realized Income decreased by 6% for Q2-26 compared to Q2-25, resulting from a decrease in realized net performance income of $6.4 million • Gross Capital Deployment totaled $0.1 billion for Q2-26 in corporate private equity Note: Past performance is not indicative of future results. Please refer to the endnotes on slide 43 for additional information. Financial Summary and Highlights Private Equity Group2$ in thousands Q2-26 Q2-25 % Change YTD-26 YTD-25 % Change Management and other fees $34,477 $32,201 7% $68,096 $64,596 5% Fee Related Earnings $15,303 $9,846 55 $30,160 $24,153 25 Realized Income $12,146 $12,858 (6) $30,759 $23,085 33 $ in billions Q2-26 Q2-25 % Change Gross Capital Deployment $0.1 $0.8 (88)% AUM 24.5 23.8 3 FPAUM 13.9 11.0 27
Page 21
Supplemental Details
Page 22
20 Financial Details – Segments Three months ended June 30, 2026 $ in thousands Credit Group Real Assets Group Secondaries Group Private Equity Group Other Operations Management Group Total1 Management fees $703,460 $202,590 $71,875 $33,800 $18,291 $— $1,030,016 Fee related performance revenues 1,081 354 39,094 — — — 40,529 Other fees 17,848 62,318 1,804 677 136 9,179 91,962 Compensation and benefits (180,162) (80,545) (17,171) (14,102) (8,933) (153,045) (453,958) Compensation and benefits—fee related performance compensation 1,662 (215) (20,187) — — — (18,740) General, administrative and other expenses (45,436) (37,314) (14,507) (5,072) (2,880) (93,545) (198,754) Fee related earnings 498,453 147,188 60,908 15,303 6,614 (237,411) 491,055 Performance income—realized 128,422 5,946 — 5,961 — — 140,329 Performance related compensation—realized (80,091) (3,402) — (5,933) — — (89,426) Realized net performance income 48,331 2,544 — 28 — — 50,903 Investment income (loss)—realized (676) 26,433 800 289 2,285 (448) 28,683 Interest income 490 301 16 1 921 1,314 3,043 Interest expense (2,790) (32,066) (2,027) (3,475) (11,748) (77) (52,183) Realized net investment income (loss) (2,976) (5,332) (1,211) (3,185) (8,542) 789 (20,457) Realized income $543,808 $144,400 $59,697 $12,146 ($1,928) ($236,622) $521,501 Three months ended June 30, 2025 $ in thousands Credit Group Real Assets Group Secondaries Group Private Equity Group Other Operations Management Group Total1 Management fees $617,141 $175,924 $61,643 $31,767 $13,810 $— $900,285 Fee related performance revenues 314 147 16,236 — — — 16,697 Other fees 13,362 48,558 5,801 434 132 7,831 76,118 Compensation and benefits (160,001) (80,200) (16,690) (16,796) (6,470) (134,645) (414,802) Compensation and benefits—fee related performance compensation (204) (89) (6,377) — — — (6,670) General, administrative and other expenses (44,302) (30,695) (10,076) (5,559) (2,708) (69,177) (162,517) Fee related earnings 426,310 113,645 50,537 9,846 4,764 (195,991) 409,111 Performance income—realized 21,915 3,681 — 29,958 — — 55,554 Performance related compensation—realized (13,248) (2,317) — (23,506) — — (39,071) Realized net performance income 8,667 1,364 — 6,452 — — 16,483 Investment income (loss)—realized 4,096 6,544 17 369 2,107 (893) 12,240 Interest income 1,135 665 23 1 1,085 646 3,555 Interest expense (4,714) (24,570) (1,862) (3,810) (8,613) (6) (43,575) Realized net investment income (loss) 517 (17,361) (1,822) (3,440) (5,421) (253) (27,780) Realized income $435,494 $97,648 $48,715 $12,858 ($657) ($196,244) $397,814 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.
Page 23
21 Six months ended June 30, 2026 $ in thousands Credit Group Real Assets Group Secondaries Group Private Equity Group Other Operations Management Group Total1 Management fees $1,388,123 $399,216 $142,150 $66,919 $35,179 $— $2,031,587 Fee related performance revenues 6,337 2,955 50,793 — — — 60,085 Other fees 32,947 109,070 3,589 1,177 186 18,960 165,929 Compensation and benefits (353,223) (159,268) (33,055) (27,886) (16,897) (303,117) (893,446) Compensation and benefits—fee related performance compensation (1,514) (1,583) (24,802) — — — (27,899) General, administrative and other expenses (96,781) (71,233) (23,134) (10,050) (5,443) (174,156) (380,797) Fee related earnings 975,889 279,157 115,541 30,160 13,025 (458,313) 955,459 Performance income—realized 294,650 17,609 — 41,618 — — 353,877 Performance related compensation—realized (182,340) (10,802) — (34,496) — — (227,638) Realized net performance income 112,310 6,807 — 7,122 — — 126,239 Investment income (loss)—realized 3,348 31,879 969 367 4,479 (579) 40,463 Interest income 1,322 485 35 1 921 2,255 5,019 Interest expense (6,145) (63,155) (3,650) (6,891) (22,889) (213) (102,943) Realized net investment income (loss) (1,475) (30,791) (2,646) (6,523) (17,489) 1,463 (57,461) Realized income $1,086,724 $255,173 $112,895 $30,759 $(4,464) $(456,850) $1,024,237 Six months ended June 30, 2025 $ in thousands Credit Group Real Assets Group Secondaries Group Private Equity Group Other Operations Management Group Total1 Management fees $1,202,537 $306,377 $119,293 $63,765 $26,689 $— $1,718,661 Fee related performance revenues 18,709 147 25,892 — — — 44,748 Other fees 23,960 69,938 5,923 831 268 13,368 114,288 Compensation and benefits (311,784) (136,902) (31,093) (30,627) (13,533) (251,113) (775,052) Compensation and benefits—fee related performance compensation (13,168) (89) (10,345) — — — (23,602) General, administrative and other expenses (85,350) (51,547) (18,549) (9,816) (4,191) (133,203) (302,656) Fee related earnings 834,904 187,924 91,121 24,153 9,233 (370,948) 776,387 Performance income—realized 76,027 68,986 — 35,989 — — 181,002 Performance related compensation—realized (47,506) (49,124) — (26,857) — — (123,487) Realized net performance income 28,521 19,862 — 9,132 — — 57,515 Investment income (loss)—realized 9,475 14,463 155 (4,233) 4,637 (562) 23,935 Interest income 5,555 3,283 980 2,023 12,773 1,249 25,863 Interest expense (11,022) (40,287) (3,870) (7,990) (16,531) (262) (79,962) Realized net investment income (loss) 4,008 (22,541) (2,735) (10,200) 879 425 (30,164) Realized income $867,433 $185,245 $88,386 $23,085 $10,112 $(370,523) $803,738 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.
Page 24
22 Realized Income per Share Data Three months ended June 30, Six months ended June 30, $ in thousands, except share data 2026 2025 2026 2025 After-tax Realized Income Realized Income before taxes $521,501 $397,814 $1,024,237 $803,738 Entity level foreign, state and local taxes (15,949) (13,845) (28,508) (22,650) Realized Income before corporate income taxes 505,552 383,969 995,729 781,088 Corporate income taxes1 (37,983) (16,081) (75,744) (31,769) After-tax Realized Income $467,569 $367,888 $919,985 $749,319 After-tax Realized Income per share2 $1.36 $1.07 $2.67 $2.20 After-tax Realized Income per share of Class A and non-voting common stock Realized Income before corporate income taxes $505,552 $383,969 $995,729 $781,088 x Average ownership % of Ares Operating Group 68.61% 67.03% 68.37% 66.39% Realized Income before corporate income taxes attributable to Class A and non-voting common stockholders $346,859 $257,374 $680,817 $518,559 Corporate income taxes1 (37,983) (16,081) (75,744) (31,769) After-tax Realized Income attributable to Class A and non-voting common stockholders $308,876 $241,293 $605,073 $486,790 After-tax Realized Income per share of Class A and non-voting common stock3 $1.29 $1.03 $2.53 $2.12 1) Corporate income taxes represent accrued corporate taxes, net of deductions, to be paid or benefits to be received by Ares: • Corporate income taxes exclude the effects of $16.1 million and $29.1 million for Q2-26 and Q2-25, respectively, and $21.9 million and $20.2 million for YTD-26 and YTD-25, respectively, of deferred income tax, 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 certain placement fees and amortization of intangibles. • Tax deductions associated with the vesting of restricted stock units reduced our current tax provision by $22.4 million and $30.0 million for Q2-26 and Q2-25, respectively, and $43.2 million and $59.3 million for YTD-26 and YTD-25, respectively. The inclusion of the benefit in the after-tax RI per share calculation had the effect of increasing this metric by $0.09 and $0.13 for Q2-26 and Q2-25, respectively, and $0.18 and $0.26 for YTD-26 and YTD-25, respectively, and decreased the RI cash tax rate by 6.3% and 11.2% for Q2-26 and Q2-25, respectively, and 6.1% and 11.0% for YTD-26 and YTD-25, respectively, from the Company’s statutory tax rate of 23.4% for both Q2-26 and YTD-26 and 23.5% for both Q2-25 and YTD-25, 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 $8.6 million, $6.3 million and $16.1 million, $12.6 million for Q2-26, Q2-25 and YTD-26, YTD-25, respectively. 2) Weighted-average shares used for after-tax RI per share for Q2-26 and Q2-25 were 344,767,937 and 344,928,366, respectively. YTD after-tax realized income per share represents the sum of the last two 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 Q2-26 and Q2-25 were 239,604,119 and 234,331,758, respectively. YTD after-tax realized income per share represents the sum of the last two quarters. Please refer to slide 23 for additional information.
Page 25
23 Weighted-Average Shares 1) Represents proportional dilutive impact based upon the weighted average percentage of Ares Operating Group owned by Ares Management Corporation (68.61% and 67.03% as of June 30, 2026 and 2025, 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. Q2-26 Q2-25 Total Shares Common Shares, As Adjusted1 Total Shares Common Shares, As Adjusted1 Weighted-average shares of Class A and non-voting common stock 226,304,870 226,304,870 218,915,599 218,915,599 Ares Operating Group Units exchangeable into shares of Class A common stock2 103,553,714 — 107,684,921 — Dilutive effect of Series B mandatory convertible preferred stock3 9,780,000 9,780,000 9,496,523 9,496,523 Dilutive effect of unvested restricted common units3 5,129,353 3,519,249 8,831,323 5,919,636 Total Weighted-Average Shares Used For Realized Income4 344,767,937 239,604,119 344,928,366 234,331,758
Page 26
24 78% 23% 1% 2% Balance Sheet Substantial balance sheet value related to investments primarily in Ares managed vehicles and net accrued performance income 1) Unconsolidated investments include $1,658.9 million of investments in Consolidated Funds that are eliminated upon consolidation for GAAP and exclude $49.4 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 $4,141.1 million. 2) As of December 31, 2025, gross and net accrued performance income on a GAAP basis was $3,972.7 million and $1,021.4 million, respectively, and on an unconsolidated basis was $4,057.9 million and $1,106.6 million, respectively. The unconsolidated basis includes $128.0 million and $85.2 million, respectively, of accrued performance income as of June 30, 2026 and December 31, 2025 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 June 30, 2026. 4) Represents only our cash, cash equivalents and available capacity on our revolving credit facility as of June 30, 2026. Credit Real Assets Secondaries Private Equity Net Accrued Performance Income by Group2 74% 19% 2% 4% December 31, 2025 $1,021.4 million $1,018.5 million Financial Strength Metrics BBB+ / A-3 Rated by S&P and Fitch $1,442.1 million Available Liquidity4 $ in millions As of June 30, 2026 Cash and cash equivalents $557.1 Term debt obligations 2,962.2 Amount drawn on $2,500.0 revolving credit facility ($885.0 available capacity) 1,615.0 GAAP Unconsolidated Corporate investment portfolio1 $1,405.1 $3,014.6 Gross accrued performance income2 4,141.1 4,269.1 Net accrued performance income2 1,018.5 1,146.5 Net Accrued Performance Income Rollforward Q4-25 (+) Net Change in Unrealized (-) Net Realizations Q2-26 ($ in millions) $67.1 $70.0 June 30, 2026 $1,018.5$1,021.4
Page 27
25 Balance Sheet Investments by Strategy1 $ in millions As of June 30, 2026 As of December 31, 2025 Credit Liquid Credit2 $37.2 $107.3 Alternative Credit 4.1 1.7 Opportunistic Credit 6.1 19.5 U.S. Direct Lending 35.0 72.1 European Direct Lending 4.0 22.5 APAC Credit 1.0 7.9 Credit $87.4 $231.0 Real Assets Real Estate $401.0 $423.6 Infrastructure 38.2 68.6 Real Assets $439.2 $492.2 Secondaries Private Equity Secondaries $154.8 $182.5 Real Estate Secondaries 10.3 11.8 Infrastructure Secondaries 5.0 5.1 Secondaries $170.1 $199.4 Private Equity Corporate Private Equity $503.3 $480.8 APAC Private Equity 2.0 1.8 Private Equity $505.3 $482.6 Other Insurance $614.4 $517.5 Other Investments2 1,198.2 902.1 Other $1,812.6 $1,419.6 Total $3,014.6 $2,824.8 1) As of June 30, 2026, the fair value of our corporate investment portfolio was $1,405.1 million as reported in accordance with GAAP. The difference between GAAP and unconsolidated investments represents $1,658.9 million of investments in Consolidated Funds that are eliminated upon consolidation and excludes $49.4 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 $4,141.1 million. 2) As of June 30, 2026 and December 31, 2025, our maximum exposure of loss for CLO securities was $55.3 million and $78.4 million, respectively, which represents the fair value of our capital interests in CLOs that are managed by us and included within our liquid credit strategy and other investments.
Page 28
26 AUM Rollforward Q2-26 AUM Rollforward $ in millions Credit Real Assets Secondaries Private Equity Other Businesses Total Q1-26 Ending Balance $422,624 $143,384 $42,629 $24,674 $10,942 $644,253 New par/equity commitments 12,887 6,667 1,329 — 1,325 22,208 New debt commitments 10,799 3,072 345 — — 14,216 Capital reductions (3,923) (888) — — — (4,811) Distributions (3,318) (2,304) (402) (551) (382) (6,957) Redemptions (1,416) (481) (130) — — (2,027) Net allocations among investment strategies 682 407 152 — (1,241) — Change in fund value 2,209 1,373 256 328 271 4,437 Q2-26 Ending Balance $440,544 $151,230 $44,179 $24,451 $10,915 $671,319 QoQ change $17,920 $7,846 $1,550 $(223) $(27) $27,066 Q2-26 LTM AUM Rollforward $ in millions Credit Real Assets Secondaries Private Equity Other Businesses Total Q2-25 Ending Balance $377,106 $129,774 $33,949 $23,766 $7,790 $572,385 Acquisitions 5,544 — — 856 — 6,400 New par/equity commitments 46,113 21,680 9,118 2,165 6,752 85,828 New debt commitments 35,991 9,441 1,428 — — 46,860 Capital reductions (13,184) (3,346) (309) (1) — (16,840) Distributions (16,218) (7,023) (1,309) (2,464) (1,540) (28,554) Redemptions (5,150) (1,542) (246) — (502) (7,440) Net allocations among investment strategies 1,142 752 167 — (2,061) — Change in fund value 9,200 1,494 1,381 129 476 12,680 Q2-26 Ending Balance $440,544 $151,230 $44,179 $24,451 $10,915 $671,319 YoY change $63,438 $21,456 $10,230 $685 $3,125 $98,934 Credit AUM increased by 17% from Q2-25, primarily driven by commitments to our drawdown funds across the 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 Real Assets AUM increased by 17% from Q2-25, primarily driven by commitments to U.S. real estate equity, real estate debt and infrastructure debt funds and by capital raised by our open- ended infrastructure fund Private Equity AUM increased by 3% from Q2-25, primarily driven by commitments in our corporate private equity strategy and AUM from acquired APAC private equity funds, partially offset by distributions from ACOF V Secondaries AUM increased by 30% from Q2-25, primarily driven by commitments to our private equity secondaries, infrastructure secondaries and credit secondaries strategies and by capital raised by APMF Other Businesses AUM increased by 40% from Q2-25, primarily driven by additional managed assets from our insurance platform
Page 29
27 Real Assets FPAUM increased by 12% from Q2-25, primarily driven by commitments to U.S. real estate equity funds and by capital raised by our perpetual wealth funds FPAUM Rollforward Q2-26 FPAUM Rollforward $ in millions Credit Real Assets Secondaries Private Equity Other Businesses Total Q1-26 Ending Balance $260,187 $87,139 $30,189 $14,203 $7,880 $399,598 Commitments 3,519 2,710 552 — 1,325 8,106 Deployment/increase in leverage 10,058 1,162 440 96 2,580 14,336 Capital reductions (2,167) (139) — — — (2,306) Distributions (4,788) (1,365) (291) (349) (382) (7,175) Redemptions (1,397) (403) (130) — — (1,930) Net allocations among investment strategies 1,316 408 152 — (1,876) — Change in fund value 344 231 638 27 288 1,528 Change in fee basis (952) (1,129) (84) (70) — (2,235) Q2-26 Ending Balance $266,120 $88,614 $31,466 $13,907 $9,815 $409,922 QoQ change $5,933 $1,475 $1,277 $(296) $1,935 $10,324 Q2-26 LTM FPAUM Rollforward $ in millions Credit Real Assets Secondaries Private Equity Other Businesses Total Q2-25 Ending Balance $228,153 $79,495 $24,535 $10,993 $6,381 $349,557 Acquisitions 5,495 — — 1,118 — 6,613 Commitments 26,367 11,380 5,502 564 4,989 48,802 Deployment/increase in leverage 38,449 7,197 1,980 925 2,929 51,480 Capital reductions (11,217) (1,233) (88) — — (12,538) Distributions (18,501) (6,798) (830) (1,344) (1,477) (28,950) Redemptions (4,774) (1,464) (246) — — (6,484) Net allocations among investment strategies 2,297 748 153 — (3,198) — Change in fund value (325) (355) 705 (387) 191 (171) Change in fee basis 176 (356) (245) 2,038 — 1,613 Q2-26 Ending Balance $266,120 $88,614 $31,466 $13,907 $9,815 $409,922 YoY change $37,967 $9,119 $6,931 $2,914 $3,434 $60,365 Credit FPAUM increased by 17% from Q2-25, 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 27% from Q2-25, primarily driven by ACOF VII as the fund started generating fees in the fourth quarter of 2025 Secondaries FPAUM increased by 28% from Q2-25, primarily driven by capital raised by APMF and by deployment in our credit secondaries strategy and commitments to our infrastructure secondaries strategy Other Businesses FPAUM increased by 54% from Q2-25, primarily driven by additional managed assets from our insurance platform
Page 30
28 AUM and FPAUM by Strategy As of June 30, 2026 $ in billions AUM % AUM FPAUM % FPAUM Credit Liquid Credit $62.0 14% $59.8 22% Alternative Credit 59.1 13 38.9 15 Opportunistic Credit 21.4 5 10.2 4 U.S. Direct Lending1 196.7 45 104.2 39 European Direct Lending 89.0 20 48.4 18 APAC Credit 12.3 3 4.6 2 Credit $440.5 100% $266.1 100% Real Assets Real Estate $121.3 80% $71.9 81% Infrastructure 29.9 20 16.7 19 Real Assets $151.2 100% $88.6 100% Secondaries Private Equity Secondaries $24.2 55% $17.2 55% Real Estate Secondaries 7.8 18 6.5 21 Infrastructure Secondaries 7.2 16 4.9 23 Credit Secondaries 5.0 11 2.9 1 Secondaries $44.2 100% $31.5 100% Private Equity Corporate Private Equity $21.4 87% $11.8 85% APAC Private Equity 3.1 13 2.1 15 Private Equity $24.5 100% $13.9 100% Other Businesses Insurance2 $10.8 99% $9.7 99% Other 0.1 1 0.1 1 Other Businesses $10.9 100% $9.8 100% Total $671.3 $409.9 1) AUM includes ARCC, IHAM, ADLP LLC (“ADLP”) and Senior Direct Lending Program LLC (“SDLP”) AUM of $36.6 billion, $12.5 billion, $3.2 billion and $3.7 billion, respectively. ARCC’s wholly owned portfolio company, IHAM, an SEC-registered investment adviser, manages 24 vehicles as of June 30, 2026. 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 $18.3 billion of AUM and $18.0 billion of FPAUM that is sub-advised by Ares and included within other strategies.
Page 31
29 Credit Group Fund Performance Metrics The following table presents the performance data for certain perpetual capital vehicles as of June 30, 2026: 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 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 $36,555 N/A 1.2 N/A 1.9 N/A 11.8 CADC5* U.S. Direct Lending 2017 8,213 N/A 0.7 N/A (0.5) N/A 6.5 Open-ended core alternative credit fund6* Alternative Credit 2021 8,680 2.9 2.1 5.7 4.1 11.9 8.8 ASIF5* U.S. Direct Lending 2023 26,634 N/A 1.9 N/A 1.9 N/A 9.9 Open-ended European direct lending fund7* European Direct Lending 2024 8,706 N/A 2.5 N/A 2.9 N/A 8.8 The following table presents the performance data for certain drawdown funds as of June 30, 2026: 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 $6,595 $5,114 $4,053 $1,626 $3,979 $5,605 1.4x 1.3x 12.2 8.6 ACE VI Unlevered14* European Direct Lending 2022 24,406 7,439 3,578 315 3,717 4,032 1.2x 1.1x 11.7 8.5 ACE VI Levered14* 9,667 3,661 307 3,857 4,164 1.2x 1.2x 17.1 12.2 SDL III Unlevered15* U.S. Direct Lending 2023 28,971 3,311 1,824 153 1,829 1,982 1.1x 1.1x 11.0 8.2 SDL III Levered* 11,959 5,980 698 6,110 6,808 1.2x 1.1x 19.2 13.3 Pathfinder II* Alternative Credit 2023 7,645 6,612 4,021 250 4,640 4,890 1.3x 1.2x 22.9 16.1
Page 32
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 $1,196 $1,515 $1,402 $1,325 $1,033 $2,358 1.8x 1.7x 9.5 8.1 ACE III16 European Direct Lending 2015 1,691 2,822 2,513 2,694 1,111 3,805 1.6x 1.4x 8.7 6.2 SSG IV APAC Credit 2016 537 1,181 1,752 1,748 262 2,010 1.2x 1.2x 9.7 6.0 PCS I U.S. Direct Lending 2017 2,405 3,365 2,653 3,090 806 3,896 1.5x 1.4x 11.2 7.9 SSG V APAC Credit 2018 1,617 1,878 2,645 2,812 305 3,117 1.3x 1.2x 24.9 15.5 ACE IV Unlevered17* European Direct Lending 2018 4,463 2,851 2,394 2,398 752 3,150 1.4x 1.3x 7.8 5.5 ACE IV Levered17* 4,819 4,011 4,139 1,580 5,719 1.6x 1.4x 10.5 7.4 ASOF I Opportunistic Credit 2019 2,046 3,518 3,136 3,633 1,386 5,019 1.8x 1.6x 18.5 13.9 Pathfinder I Alternative Credit 2020 3,415 3,683 3,180 1,726 2,636 4,362 1.5x 1.4x 13.3 9.6 ACE V Unlevered18* European Direct Lending 2020 17,086 7,026 5,685 2,212 5,105 7,317 1.4x 1.3x 9.6 7.0 ACE V Levered18* 6,376 5,163 2,744 4,657 7,401 1.5x 1.4x 13.4 9.7 SDL II Unlevered* U.S. Direct Lending 2021 14,146 1,989 1,700 787 1,349 2,136 1.3x 1.3x 10.7 8.5 SDL II Levered* 6,047 4,924 3,350 3,366 6,716 1.5x 1.4x 16.4 12.4 ASOF II* Opportunistic Credit 2021 8,922 7,128 6,302 755 7,721 8,476 1.5x 1.3x 15.8 11.4 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 the 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 certain drawdown funds as of June 30, 2026:
Page 33
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 the endnotes on slides 40-42 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. Real Assets Group Fund Performance Metrics The following table presents the performance data for certain perpetual capital vehicles as of June 30, 2026: Returns(%) Primary Investment Strategy Year of Inception Quarter-to-Date Year-to-Date Since Inception4 $ in millions AUM Gross Net Gross Net Gross Net Diversified non-traded REIT5* Real Estate 2012 $8,395 N/A 2.2 N/A 5.0 N/A 6.6 J-REIT6* Real Estate 2012 7,256 N/A N/A N/A N/A N/A 13.0 Industrial non-traded REIT7* Real Estate 2017 7,967 N/A 2.0 N/A 3.8 N/A 8.5 U.S. open-ended industrial real estate equity fund8* Real Estate 2017 7,426 2.2 1.9 4.9 4.2 15.9 13.0 Japanese open-ended industrial real estate equity fund8 Real Estate 2020 3,678 0.7 0.4 3.9 3.4 12.7 11.4 Open-ended core infrastructure fund9* Infrastructure 2024 5,794 N/A 2.4 N/A 4.4 N/A 10.5 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 $5,143 $4,585 $4,907 $2,563 $3,432 $5,995 1.3x 1.2x 12.4 9.8 Funds Harvesting Investments EPEP II17 Real Estate 2015 107 747 688 741 86 827 1.2x 1.1x 7.8 3.4 EIF V Infrastructure 2015 643 801 1,439 1,849 561 2,410 1.7x 1.9x 18.7 14.0 US IX Real Estate 2017 454 1,040 980 1,409 373 1,782 1.8x 1.6x 17.7 14.8 EF V18 Real Estate 2018 1,311 1,968 2,012 1,352 1,139 2,491 1.3x 1.1x 7.1 2.6 IDF IV19 Infrastructure 2018 1,435 4,012 4,533 3,936 1,210 5,146 1.2x 1.2x 5.5 4.3 AREOF III Real Estate 2019 1,312 1,697 1,588 1,039 1,021 2,060 1.3x 1.2x 11.1 6.1 EIP II20 Real Estate 2020 3,972 1,839 1,811 436 1,512 1,948 1.2x 1.1x 1.9 1.6 The following table presents the performance data for certain drawdown funds as of June 30, 2026:
Page 34
32 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 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 certain drawdown funds as of June 30, 2026: Primary Investment Strategy Year of Inception Original Capital Commitments Capital Invested to Date Realized Value5 Unrealized Value6 Total Value MoIC IRR(%) $ in millions AUM Gross7 Net8 Gross9 Net10 Funds Harvesting Investments LEP XV11 Private Equity Secondaries 2013 $1,057 $3,250 $2,654 $3,103 $419 $3,522 1.5x 1.3x 14.9 9.5 LEP XVI11* Private Equity Secondaries 2016 3,969 4,896 4,479 2,079 3,276 5,355 1.3x 1.2x 11.5 6.8 LREF VIII11 Real Estate Secondaries 2016 2,345 3,300 2,682 1,733 1,494 3,227 1.3x 1.2x 11.4 6.6 The following table presents the performance data for certain perpetual capital vehicle as of June 30, 2026: Returns(%) Primary Investment Strategy Year of Inception Quarter-to-Date Year-to-Date Since Inception4 $ in millions AUM Gross Net Gross Net Gross Net APMF1* Private Equity Secondaries 2022 $5,870 N/A 6.9 N/A 10.2 N/A 15.0
Page 35
33 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 the endnotes on slide 43 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 certain drawdown funds as of June 30, 2026: Primary Investment Strategy Year of Inception Original Capital Commitments Capital Invested to Date Realized Value3 Unrealized Value4 Total Value MoIC IRR(%) $ in millions AUM Gross5 Net6 Gross7 Net8 Funds Deploying Capital ACOF VI* Corporate Private Equity 2020 $8,909 $5,743 $5,977 $2,485 $8,427 $10,912 1.8x 1.5x 19.5 14.6 ACOF VII* Corporate Private Equity 2023 3,932 3,846 764 — 930 930 NM NM NM NM Funds Harvesting Investments ACOF IV Corporate Private Equity 2012 585 4,700 4,319 9,562 440 10,002 2.3x 1.8x 18.7 13.4 ACOF V Corporate Private Equity 2017 4,959 7,850 7,640 5,760 4,563 10,323 1.3x 1.2x 5.8 4.0 AEOF Corporate Private Equity 2018 224 1,120 977 560 127 687 0.7x 0.6x (6.6) (8.7)
Page 36
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 Former Partner at PricewaterhouseCoopers LLP 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 Emerita 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@ares.com Carl Drake Partner/Senior Advisor to Public Markets Investor Relations and Corporate Communications Tel: (800) 340-6597 cdrake@ares.com Samantha Platt Vice President Tel: (800) 340-6597 splatt@ares.com General IR Contact Tel (U.S.): (888) 818-5298 Tel (International): (212) 808-1101 IRARES@ares.com Please visit our website at: www.ares.com
Page 37
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 KBW Morgan Stanley Oppenheimer Dan Fannon (415) 229-1523 Brian McKenna (212) 906-3545 Kenneth Worthington (212) 622-6613 Chris Allen (212) 887-7715 Michael Cyprys (212) 761-7619 Chris Kotowski (212) 667-6699 Raymond James RBC Capital Markets Redburn Atlantic TD Cowen UBS Wolfe Research Wilma Burdis (727) 567-9371 Bart Dziarski (416) 842-8611 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
Page 38
Reconciliation and Disclosures
Page 39
37 GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis Three months ended June 30, Six months ended June 30, $ in thousands 2026 2025 2026 2025 Realized Income and Fee Related Earnings: Income before taxes $385,942 $286,938 $698,863 $427,976 Adjustments: Amortization of intangibles 47,472 52,666 94,578 89,963 Depreciation expense 12,977 10,514 25,565 21,446 Equity compensation expense 151,052 122,814 318,385 259,183 Acquisition-related equity compensation expense1 31,727 42,277 68,026 163,770 Acquisition-related compensation expense2 28,239 44,305 56,439 66,304 Acquisition and merger-related expense 692 2,791 1,936 37,399 Placement fee adjustment (8,096) (1,092) (14,918) (1,098) Change in value of contingent consideration3 13,760 25,536 28,030 27,860 Other (income) expense, net4 912 1,627 (36,364) 1,829 Income before taxes of non-controlling interests in consolidated subsidiaries (8,903) (5,317) (14,481) (10,788) Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations (74,150) (4,708) (107,574) (62,687) Total performance income—unrealized (124,837) (300,592) (216,872) (365,035) Total performance related compensation—unrealized 123,748 207,731 205,170 248,281 Total net investment income—unrealized (59,034) (87,676) (82,546) (100,665) Realized Income 521,501 397,814 1,024,237 803,738 Total performance income—realized (140,329) (55,554) (353,877) (181,002) Total performance related compensation—realized 89,426 39,071 227,638 123,487 Total net investment loss—realized 20,457 27,780 57,461 30,164 Fee Related Earnings $491,055 $409,111 $955,459 $776,387 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) The change in value of contingent consideration primarily reflects progress toward achieving the earnouts established in connection with the acquisition of GCP International. 4) For YTD-26, other income includes a bargain purchase gain of $37.3 million from the acquisition of BlueCove Limited. • 1)
Page 40
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) Performance income–realized is presented on a gross basis and excludes amounts payable to our professionals, among other expenses, which are reflected as performance related compensation–realized. Performance related compensation on a GAAP basis differs from performance related compensation–realized because it also includes fee related performance compensation, performance related compensation–unrealized and performance related compensation attributable to non-controlling interests. 2) The change in value of contingent consideration primarily reflects progress toward achieving the earnouts established in connection with the acquisition of GCP International. 3) For YTD-26, other income includes a bargain purchase gain of $37.3 million from the acquisition of BlueCove Limited. Three months ended June 30, Six months ended June 30, $ in thousands 2026 2025 2026 2025 Performance income and net investment income reconciliation: Carried interest allocation $249,914 $323,901 $396,545 $483,909 Incentive fees 42,753 23,079 204,687 55,127 Carried interest allocation and incentive fees 292,667 346,980 601,232 539,036 Performance income—realized from Consolidated Funds — 262 — 272 Fee related performance revenues (40,529) (16,697) (60,085) (44,748) Total performance income—unrealized (111,777) (293,758) (187,694) (353,083) Performance (income) loss of non-controlling interests in consolidated subsidiaries (32) 18,767 424 39,525 Performance income—realized1 $140,329 $55,554 $353,877 $181,002 Total consolidated other income $137,309 $74,388 $222,257 $140,949 Net investment income of Consolidated Funds (131,031) (134,734) (237,987) (219,356) Principal investment income 18,442 91,377 47,454 118,216 Change in value of contingent consideration2 13,760 25,536 28,030 27,860 Other (income) expense, net3 912 1,627 (36,364) 1,829 Other expense (income) of non-controlling interests in consolidated subsidiaries (815) 1,702 1,695 1,003 Investment income—unrealized (59,034) (87,676) (82,546) (100,665) Total realized net investment loss $(20,457) $(27,780) $(57,461) $(30,164)
Page 41
39 Credit Group 1) 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 2.9% for Q2-26 and 11.2% for Q2-26 LTM. • 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 1.7% for Q2-26 and 6.0% for Q2-26 LTM. • Performance for the U.S. senior direct lending strategy is represented by the composite made up of SDL II and SDL III levered feeder funds. The net returns were 1.7% for Q2-26 and 7.7% for Q2-26 LTM. The gross and net returns for the composite made up of the SDL II and SDL III unlevered feeder funds were 1.9% and 1.4% for Q2-26, respectively, and 8.2% and 6.2% for Q2-26 LTM, 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 (0.2)% for Q2-26 and 5.8% for Q2-26 LTM. • 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 6 for the European direct lending composite are Euro-denominated as this is the base denomination of the funds. The net returns were 0.9% for Q2-26 and 5.3% for Q2-26 LTM. 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 1.6% and 1.0% for Q2-26, respectively, and 10.1% and 7.1% for Q2-26 LTM, respectively. • Performance for the APAC credit strategy is represented by the composite made up of SSG V and SSG VI. The net returns were 1.5% for Q2-26 and 13.2% for Q2-26 LTM. 2) The Credit Group had ~645 investment and investor relations professionals, ~330 active funds, ~2,000 portfolio companies and ~1,950 alternative credit investments as of June 30, 2026. 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 their respective 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 3.0% and 2.1%, respectively. The year-to-date gross and net returns for Class M (offshore) are 5.8% and 4.0%, 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 2.7% and 1.9%, respectively. The year-to-date gross and net returns for Class C (offshore) are 5.2% and 3.7%, respectively. The since inception gross and net returns for Class C (offshore) are 11.3% and 8.1%, respectively. Metrics for the rated note feeder funds are not shown separately. 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 represents the sum of all cash distributions to all partners and if applicable, excludes tax and incentive distributions made to the general partner. For our opportunistic credit funds, realized value represents the sum of all cash distributions to the fee-paying limited partners and if applicable, excludes 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
Page 42
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 13.6% and 9.8%, 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 21.2% and 12.6%, respectively. The gross and net MoIC for ACE VI (G) Levered are 1.3x and 1.2x, respectively. The gross and net IRR for ACE VI (E) II Unlevered are 11.9% and 8.4%, respectively. The gross and net MoIC for ACE VI (E) II Unlevered are 1.2x and 1.1x, respectively. The gross and net IRR for ACE VI (E) II Levered are 18.4% and 12.9%, respectively. The gross and net MoIC for ACE VI (E) II Levered are 1.3x and 1.2x, respectively. The gross and net IRR for ACE VI (D) Levered are 20.0% and 15.3%, respectively. The gross and net MoIC for ACE VI (D) Levered are 1.3x and 1.2x, respectively. The gross and net IRR for ACE VI (Y) Unlevered are 9.7% and 6.5%, 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 18.4% and 12.1%, respectively. The gross and net MoIC for ACE VI (D) Rated Notes are 1.3x and 1.2x, 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 11.4% and 8.7%, 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 7.1% and 4.2%, respectively. The gross and net MoIC for investors committed in Yen 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 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 a main fund and two feeder funds, one denominated in U.S. Dollars and one denominated in Euros. The gross and net IRR and MoIC presented in the table are for the Euro denominated feeder fund. The gross and net IRR for the U.S. Dollar denominated feeder fund are 9.7% and 7.1%, respectively. The gross and net MoIC for the U.S. Dollar denominated feeder 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) 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, AREOF IV, US IX and US X. The net returns were (0.4)% for Q2-26 and 2.3% for Q2-26 LTM. • 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 6 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 (0.2)% for Q2-26 and 0.7% for Q2-26 LTM. The gross and net returns for the U.S. Dollar denominated feeder fund for European real estate equity were (1.6)% and (2.0)% for Q2-26, respectively, and (0.5)% and (2.3)% for Q2-26 LTM, respectively. • Performance for the infrastructure equity strategy is represented by the composite made up of ACIP I and ACIP II. The net returns were 7.3% for Q2-26 and 7.1% for Q2-26 LTM. • 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 1.2% for Q2-26 and 5.0% for Q2-26 LTM. 2) The Real Assets Group had ~915 investment and investor relations professionals, ~1,400 properties, ~95 infrastructure assets and ~115 active funds as of June 30, 2026. 3) Included results of GCP International following the acquisition close date of March 1, 2025. 4) Since inception returns are annualized. 5) 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. 6) 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 9.3% and 6.8%, 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 11.9% and 8.4%, 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 11.9% and 8.7%, 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 11.3% and 8.5%, respectively. The gross and net MoIC for ACE V (G) Unlevered are 1.5x and 1.3x, respectively. The gross and net IRR for ACE V (G) Levered are 14.7% and 10.5%, respectively. The gross and net MoIC for ACE V (G) Levered are 1.6x and 1.4x, respectively. The gross and net IRR for ACE V (D) Levered are 13.9% and 10.3%, respectively. The gross and net MoIC for ACE V (D) Levered are 1.6x and 1.4x, respectively. The gross and net IRR for ACE V (Y) Unlevered are 10.9% and 7.9%, 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.
Page 43
41 Investment Group Highlights and Fund Performance Endnotes (cont'd) Real Assets Group (cont’d) 7) 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. 8) 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. 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. 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. 10) For the real estate funds (excluding EIP II) and EIF V, the 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) 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) 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. 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 11.2% and 9.0%, 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 11.1% and 8.4%, 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 12.1% and 9.2%, 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 8.5% 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. 17) 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 7.8% and 3.5%, 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. 18) 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 IRR for the U.S. Dollar denominated parallel fund are 6.8% and 4.3%, respectively. The gross and net MoIC for the U.S. Dollar denominated parallel fund are 1.3x 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 EF V are for the combined fund and are converted to U.S. Dollars at the prevailing quarter-end exchange rate. 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. 14) For the real estate funds (excluding EIP II) 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 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.
Page 44
42 Investment Group Highlights and Fund Performance Endnotes (cont'd) Secondaries Group 1) Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. 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. 2) 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 (3.7)% for Q2-26 and (1.3)% for Q2-26 LTM. • Performance for the real estate secondaries is represented by the composite made up of LREF VIII and LREF IX. The net returns were (1.1)% for Q2-26 and 3.7% for Q2-26 LTM. • Performance for the infrastructure secondaries strategy is represented by LIP II. The net returns were (0.6)% for Q2-26 and 12.4% for Q2-26 LTM. 3) The Secondaries Group had ~105 investment and investor relations professionals, ~1,000 underlying limited partnership interests and ~100 active funds as of June 30, 2026. 4) Since inception returns are annualized. 5) 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. 6) 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. 7) 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. 8) 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. 9) 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. 10) 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. 11) 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. Real Assets Group (cont’d) 19) 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 5.4% and 4.2%, 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 4.7% and 3.3%, 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 4.0% and 2.8%, 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. 20) 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.
Page 45
43 Investment Group Highlights and Fund Performance Endnotes (cont'd) 7) 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, 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 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. 8) 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 13.4% for ACOF IV, 4.2% for ACOF V, 14.2% for ACOF VI and (8.7)% for AEOF. Private Equity Group 1) 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 2.1% for Q2-26 and (0.3)% for Q2-26 LTM. 2) The Private Equity Group had ~90 investment and investor relations professionals, ~120 portfolio companies and ~60 active funds as of June 30, 2026. 3) 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. 4) 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. 5) 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. 6) 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, 1.5x 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.
Page 46
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, structured financing vehicles, CLOs and SPACs that are required under GAAP to be consolidated in our consolidated financial statements. Common Stock 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, the exercise of stock options and 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 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, are presented within FRE because they represent 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.
Page 47
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 funds 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 funds 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 publicly-traded and perpetual wealth 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 IHAM, a wholly owned portfolio company of 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 funds. 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 funds 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 carried interest or incentive fees earned from funds with stated investment periods. Glossary (cont'd)
Page 48
46 Glossary (cont'd) Perpetual Capital Perpetual Capital refers to the AUM of publicly-traded funds, perpetual wealth funds, 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 funds or our perpetual wealth funds. 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 funds and our perpetual wealth funds have one year terms, which are subject to annual renewal by such funds. 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 certain 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 and differ from the expenses recorded in accordance with GAAP. For periods in which the amortization of these 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.
Page 49
47 Glossary (cont'd) Acronym Fund Name Acronym Fund Name ACE III Ares Capital Europe III, L.P. EPEP II European Property Enhancement Partners II SCSp ACE IV Ares Capital Europe IV, L.P. EPEP III European Property Enhancement Partners III SCSp ACE V Ares Capital Europe V, L.P. IDF III Ares Infrastructure Debt Fund III, L.P. ACE VI Ares Capital Europe VI, L.P. IDF IV Ares Infrastructure Debt Fund IV, L.P. ACIP I Ares Climate Infrastructure Partners, L.P. IDF V Ares Infrastructure Debt Fund V, L.P. ACIP II Ares Climate Infrastructure Partners II, L.P. J-REIT GLP J-REIT (TSE: 3281) ACOF IV Ares Corporate Opportunities Fund IV, L.P. LEP XV Landmark Equity Partners XV, L.P. ACOF V Ares Corporate Opportunities Fund V, L.P. LEP XVI Landmark Equity Partners XVI, L.P. ACOF VI Ares Corporate Opportunities Fund VI, L.P. LEP XVII Landmark Equity Partners XVII, L.P. ACOF VII Ares Corporate Opportunities Fund VII, L.P. LIP II Landmark Infrastructure Partners II, L.P. ACS Ares Credit Secondaries Fund, L.P. LREF VIII Landmark Real Estate Fund VIII, L.P. AEOF Ares Energy Opportunities Fund, L.P. LREF IX Landmark Real Estate Fund IX, L.P. APMF Ares Private Markets Fund Pathfinder I Ares Pathfinder Fund, L.P. ARCC Ares Capital Corporation (NASDAQ: ARCC) Pathfinder II Ares Pathfinder Fund II, L.P. AREOF III Ares U.S. Real Estate Opportunity Fund III, L.P. Pathfinder III Ares Pathfinder Fund III, L.P. AREOF IV Ares U.S. Real Estate Opportunity Fund IV, L.P. PCS I Ares Private Credit Solutions, L.P. ASIF Ares Strategic Income Fund PCS II Ares Private Credit Solutions II, L.P. ASIS III Ares Secondaries Infrastructure Solutions III, L.P. SDL II Ares Senior Direct Lending Fund II, L.P. ASOF I Ares Special Opportunities Fund, L.P. SDL III Ares Senior Direct Lending Fund III, L.P. ASOF II Ares Special Opportunities Fund II, L.P. SSF IV Ares Special Situations Fund IV, L.P. ASOF III Ares Special Opportunities Fund III, L.P. SSG IV SSG Capital Partners IV, L.P. CADC CION Ares Diversified Credit Fund SSG V SSG Capital Partners V, L.P. DEV II Ares U.S. Development and Redevelopment Fund II, L.P. SSG VI SSG Capital Partners VI, L.P. EF V Ares European Real Estate Fund V SCSp US IX U.S. Real Estate Fund IX, L.P. EF VI Ares European Real Estate Fund VI SCSp US X U.S. Real Estate Fund X, L.P. EIF V Ares Energy Investors Fund V, L.P. US XI U.S. Real Estate Fund XI, L.P. EIP II Europe Logistics Income Partners II SCSp Unless otherwise indicated, fund references throughout this presentation include the main fund and related parallel funds, feeder funds and co- investment vehicles. The following list sets forth the funds referred to throughout this presentation: