Ares Management ARES · USD

15. SEGMENT REPORTINGThe Company operates through its distinct operating segments. The Company operating segments are summarized below:Credit Group: The Credit Group manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, opportunistic credit, direct lending and Asia-Pacific (“APAC”) credit.Real Assets Group: The Real Assets Group manages comprehensive equity and debt strategies across real estate and infrastructure investments. Secondaries Group: The Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit.Private Equity Group: The Private Equity Group broadly categorizes its investment strategies as corporate private equity and APAC private equity.Other: Other represents a compilation of operating segments and strategic investments that seek to expand the Company’s reach and its scale in new and existing global markets but individually are not yet material to the Company’s results. These results include activities from: (i) Ares Insurance Solutions (“AIS”), the Company’s insurance platform that provides solutions to insurance clients including asset management, capital solutions and corporate development; (ii) the SPACs sponsored by the Company; (iii) a venture capital business with fund strategies that are focused on growth-stage companies and applied artificial intelligence, among others; and (iv) other initiatives, such as activities from the Company’s investments in certain structured financing vehicles. The Operations Management Group (the “OMG”) consists of shared resource groups to support the Company’s operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy, relationship management, and distribution, including the Company’s wealth distribution platform, Ares Wealth Management Solutions (“AWMS”). AWMS facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel. Additionally, the OMG provides services to certain of the Company’s managed funds and vehicles, which may reimburse the OMG for expenses either equal to the costs of services provided or as a percentage of invested capital.

9. COMMITMENTS AND CONTINGENCIESIndemnification ArrangementsConsistent with standard business practices in the normal course of business, the Company enters into contracts that contain indemnities for affiliates of the Company, persons acting on behalf of the Company or such affiliates and third parties. The terms of the indemnities vary from contract to contract and the Company’s maximum exposure under these arrangements cannot be determined and has not been recorded within the Consolidated Statements of Financial Condition. As of December 31, 2025, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.CommitmentsAs of December 31, 2025 and 2024, the Company had aggregate unfunded commitments to invest in funds it manages or to support certain strategic initiatives of $1,172.9 million and $1,451.4 million, respectively.GuaranteesAs of December 31, 2025 and 2024, the Company’s maximum exposure to losses from guarantees was $7.1 million and $1.1 million, respectively. The guarantee agreements that the Company enters into with financial institutions are primarily to guarantee credit facilities held by certain funds. In the ordinary course of business, the guarantee of credit facilities held by funds may indicate control and result in consolidation of the fund. Contingent Earnout ArrangementsGCP InternationalIn connection with the GCP Acquisition during the first quarter of 2025, the Company established two arrangements with the sellers and with certain of its professionals that became employees of the Company, including (i) an earnout arrangement related to the data center business (“DC Earnout”) based on the achievement of revenue targets of certain digital infrastructure funds; and (ii) an earnout arrangement related to the Japan business (“Japan Earnout”) based on the achievement of fundraising targets of certain Japanese real estate funds. The DC Earnout and Japan Earnout represent contingent liabilities not to exceed $1.0 billion and $0.5 billion, respectively.The portion of the DC Earnout and Japan Earnout attributable to the sellers represents a component of purchase consideration that will be accounted for as contingent consideration. As of March 1, 2025, the fair value of these contingent liabilities was $465.1 million and was recorded within accounts payable, accrued expenses and other liabilities within the Consolidated Statements of Financial Condition.

7. DEBTThe following table summarizes the Company’s and its subsidiaries’ debt obligations:As of December 31,20252024Original Borrowing AmountCarrying ValueFair Value(1)Interest RateCarrying ValueInterest RateCredit Facility(2)N/A$1,380,000 $1,380,000 4.86 %$— — %Senior notes due 11/10/2028(3)500,000 496,785 529,140 6.42 495,677 6.42 Senior notes due 6/15/2030(4)400,000 397,954 379,280 3.28 397,501 3.28 Senior notes due 2/1/2052(5)500,000 485,011 348,840 3.77 484,601 3.77 Senior notes due 10/11/2054(6)750,000 736,355 709,073 5.65 736,010 5.65 Subordinated notes due 6/30/2051(7)450,000 445,310 443,943 4.13 445,125 4.13 Total debt obligations$3,941,415 $3,790,276 $2,558,914 (1)The senior notes and subordinated notes would be classified as Level II within the fair value hierarchy and fair value is based on quoted prices in inactive markets.(2)In April 2025, the Company amended its Credit Facility to, among other things: (i) extend the maturity from March 31, 2029 to April 22, 2030; (ii) increase commitments from $1.400 billion, with an accordion feature of $600.0 million, to $1.840 billion with an accordion feature of $660.0 million; and (iii) provide a sub-limit for the issuance of swingline loans up to an aggregate amount of $75.0 million (with the amount available for borrowing under the Credit Facility amendment being reduced by any swingline loans issued). The Credit Facility has a variable interest rate based on Secured Overnight Financing Rate (“SOFR”) or a base rate plus an applicable margin, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating. As of December 31, 2025, base rate loans bear interest calculated based on the prime rate and the SOFR loans bear interest calculated based on SOFR plus 1.00%. The unused commitment fee is 0.09% per annum. The Credit Facility has a base rate and SOFR floor of zero. (3)The senior notes were issued by the Company at 99.80% of the face amount with interest paid semi-annually. The Company may redeem the senior notes prior to maturity, subject to the terms of the indenture governing the senior notes.(4)The senior notes were issued by Ares Finance Co. II LLC, an indirect subsidiary of the Company, at 99.77% of the face amount with interest paid semi-annually. The Company may redeem the senior notes prior to maturity, subject to the terms of the indenture governing the senior notes.(5)The senior notes were issued by Ares Finance Co.

11. INCOME TAXESThe Company’s effective income tax rate is dependent on many factors, including the estimated nature and amounts of income and expenses allocated to the non-controlling interests without being subject to federal, state and local income taxes at the corporate level. Additionally, the Company’s effective tax rate is influenced by the amount of income tax provision recorded for any affiliated funds and co-investment vehicles that are consolidated in the Company’s consolidated financial statements. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by U.S. federal, state, local and foreign tax authorities. With limited exceptions, the Company is no longer subject to income tax audits by taxing authorities for any years prior to 2021. Although the outcome of tax audits is always uncertain, the Company does not believe the outcome of any future audit will have a material adverse effect on the Company’s consolidated financial statements.The provision for income taxes attributable to the Company and the Consolidated Funds, consisted of the following: Year ended December 31,Provision for Income Taxes202520242023The CompanyCurrent U.S. federal income tax expense$55,531 $63,292 $34,051 State and local income tax expense15,456 14,326 13,316 Foreign income tax expense44,869 24,841 24,029 115,856 102,459 71,396 DeferredU.S. federal income tax expense87,010 50,182 85,610 State and local income tax expense12,370 7,819 15,872 Foreign income tax benefit(22,829)(2,917)(3,730)76,551 55,084 97,752 TotalU.S. federal income tax expense142,541 113,474 119,661 State and local income tax expense27,826 22,145 29,188 Foreign income tax expense22,040 21,924 20,299 Income tax expense192,407 157,543 169,148 Consolidated FundsCurrent Foreign income tax expense (benefit)(434)(1,331)3,823 (434)(1,331)3,823 DeferredU.S. federal income tax expense6,562 8,405 — 6,562 8,405 — TotalU.S. federal income tax expense6,562 8,405 — Foreign income tax expense (benefit)(434)(1,331)3,823 Income tax expense6,128 7,074 3,823 Total Provision for Income TaxesTotal current income tax expense115,422 101,128 75,219 Total deferred income tax expense83,113 63,489 97,752 Income tax expense$198,535 $164,617 $172,971 The disaggregation of income before taxes is effective with the adoption of ASU 2023-09 and consisted of the following: Year ended December 31, 2025U.S.

3. BUSINESS COMBINATIONSAcquisition of GCP InternationalOn March 1, 2025, the Company completed the acquisition of the international business of GLP Capital Partners Limited and certain of its affiliates, excluding its operations in Greater China (“GCP International”), and existing capital commitments to certain managed funds (such acquisition of GCP International and the capital commitments, the “GCP Acquisition”). The GCP Acquisition adds complementary real estate and digital infrastructure investment capabilities and expands the Company’s geographic presence. The activities of GCP International are included within the Real Assets Group segment. The acquisition date fair value of the consideration transferred totaled $3.9 billion, which consisted of the following:Cash$1,793,557 Equity(1)1,657,881 Contingent consideration(2)465,080 Total$3,916,518 (1)9.6 million shares of Class A common stock and 0.1 million AOG Units were issued in connection with the GCP Acquisition purchase consideration.(2)See “Note 9. Commitments and Contingencies” for a further description of the contingent consideration from the GCP Acquisition.The following is a summary of the fair values of assets acquired and liabilities assumed for the GCP Acquisition as of March 1, 2025, based upon third party valuations of certain intangible assets. The purchase price allocation is preliminary and subject to change during the measurement period, which may be up to one year from the acquisition date, as additional information is obtained about the facts and circumstances that existed at close of the GCP Acquisition. The fair value of assets acquired and liabilities assumed are estimated to be:Cash$61,436 Other tangible assets438,604 Intangible assetsManagement contracts473,300 Client relationships107,200 Finite-lived intangible assets580,500 Indefinite-lived management contracts749,600 Total intangible assets1,330,100 Total identifiable assets acquired1,830,140 Accounts payable, accrued expenses and other liabilities198,943 Net identifiable assets acquired1,631,197 Goodwill2,285,321 Net assets acquired$3,916,518 Certain management contracts were determined to have indefinite useful lives at the time of the GCP Acquisition and are not subject to amortization. As of March 1, 2025, the remaining management contracts and client relationships had a weighted average amortization period of 5.8 years and 7.6 years, respectively.

Assessment, Identification and Management of Material Risks from Cybersecurity ThreatsOur cybersecurity strategy prioritizes the detection and analysis of, and response to, known, anticipated or unexpected threats, effective management of security risks and resilience against cyber incidents. Our enterprise-wide cybersecurity program is aligned to the National Institute of Standards and Technology Cybersecurity Framework. Our cybersecurity risk management processes include technical security controls, policy enforcement mechanisms, monitoring systems, tools and related services, which include tools and services from third-party providers, and management oversight to assess, identify and manage risks from cybersecurity threats. We have implemented and continue to implement risk-based controls designed to prevent, detect and respond to information security threats and protect our information, our information systems, and the information of our investors, employees and other third parties who entrust us with their sensitive information. Our cybersecurity program includes physical, administrative and technical safeguards, and we maintain plans and procedures designed to help us prevent and timely and effectively respond to cybersecurity threats and incidents. Through our cybersecurity risk management process, we seek to monitor cybersecurity vulnerabilities and potential attack vectors, evaluate the potential operational and financial effects of any threat and mitigate such threats. The assessment of cybersecurity threats is integrated into our Enterprise Risk Management program, which is overseen by our Enterprise Risk Committee (the “ERC”), as discussed below. In addition, we periodically engage third-party consultants and engage with key vendors to assist us in assessing, enhancing, implementing, and monitoring our cybersecurity risk management programs and responding to incidents. Our cybersecurity risk management and awareness programs include periodic identification and testing of vulnerabilities, regular phishing simulations and annual general cybersecurity awareness and data protection training. We also have annual certification requirements for employees with respect to certain policies supporting the cybersecurity program including information security and electronic communications, data protection and privacy.

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5. INVESTMENTSThe following table summarizes the Company’s investments:As ofPercentage of total investments as ofDecember 31,December 31,2025202420252024Equity method investmentsEquity method - carried interest(1)$3,972,748 $3,495,115 72.1%75.2%Equity method private investment partnership interests - principal526,372 536,912 9.611.6Equity method private investment partnership interests and other (held at fair value)675,777 411,417 12.38.9Equity method private investment partnership interests and other61,306 55,461 1.11.2Total equity method investments5,236,203 4,498,905 95.196.9Collateralized loan obligations13,217 19,040 0.20.4Fixed income securities11,252 22,793 0.20.5Collateralized loan obligations and fixed income securities, at fair value24,469 41,833 0.40.9Common stock and other equity securities, at fair value247,775 104,037 4.52.2Total investments$5,508,447 $4,644,775 (1)Includes carried interest held at fair value of $118.1 million as of December 31, 2025.Equity Method InvestmentsThe Company’s equity method investments include investments that are not consolidated but over which the Company exerts significant influence. The Company evaluates each of its equity method investments to determine if any were significant as defined by guidance from the SEC. As of and for the years ended December 31, 2025, 2024 and 2023, no individual equity method investment held by the Company met the significance criteria.