Ares Management, L.P. Reports Second Quarter 2014 Results

  Ares Management, L.P. Reports Second Quarter 2014 Results

  *Total assets under management^1 increased 30.1% over the last twelve
    months to $79.2 billion as of June30, 2014
  *Management fees and total fee revenue increased 26.7% and 53.0%,
    respectively, compared to the second quarter of 2013
  *Management fees were 88.5% of total fee revenue for the three months ended
    June30, 2014
  *Second quarter 2014 economic net income was $75.1 million; pro forma for
    the initial public offering, economic net income after tax was $69.9
    million or $0.33 per unit
  *Distributable earnings were $48.6 million; distributable earnings after
    tax were $0.18 per common unit
  *Declared second quarter distribution of $0.18 per common unit
  *Second quarter GAAP net income^2 was $2.7 million

Business Wire

LOS ANGELES -- August 13, 2014

Ares Management, L.P. (the “Company,” “Ares,” “we,” and “our”) (NYSE:ARES)
today reported its financial results for the quarter ended June30, 2014. As
Ares was not a public company prior to its initial public offering (“IPO”),
which closed on May7, 2014, and the related reorganization, the historical
financial results reported herein represent those of our predecessor owners.

“We continue to experience rapid growth in AUM and management fee revenue as
our diversified asset management platform is uniquely positioned to deliver
strong and stable returns across a variety of asset classes for our
investors,” commented Tony Ressler, Chief Executive Officer of Ares. “We hope
to deliver an attractive and growing dividend stream to our investors over
time as we capitalize on the industry opportunity and our expanded platform.”

During the twelve months ended June30, 2014, Ares reported strong growth in
both assets under management and fee earning assets under management of 30.1%
and 21.2%, reaching $79.2 billion and $59.2 billion, respectively.

“With a record $19.0 billion of dry powder to invest, we believe we are well
positioned to take advantage of investing opportunities across the platform,
and at the same time, grow our fee revenues,” commented Michael Arougheti,
President of Ares. “Based upon known realization activity for the third
quarter, we expect a near term pick-up in realizations which should bode well
for distributable earnings when compared to second quarter levels.”

Economic net income for the three months ended June30, 2014 was $75.1 million
compared to $18.2 million for the second quarter of 2013. The increase was
primarily attributable to an increase of $7.7 million, $27.2 million and $14.6
million in performance related earnings within the Tradable Credit, Private
Equity and Real Estate Groups, respectively, as these segments reported higher
unrealized incentive income and unrealized investment income during the second
quarter of 2014 compared to 2013. In addition, fee related earnings for the
three months ended June30, 2014 were $4.5 million higher compared to the
three months ended June30, 2013. On a pro forma basis, taking into
consideration the reorganization related to the IPO, second quarter economic
net income, net of income taxes, was $69.9 million or $0.33 per unit. Economic
net income for the six months ended June30, 2014 was $152.5 million, an
increase of 36.1% compared to the six months ended June30, 2013, driven by
higher net investment income and net performance fees primarily from funds in
the Private Equity Group.

^1 In this press release we refer to certain non-GAAP financial measures,
including assets under management, fee earning assets under management,
economic net income and distributable earnings. 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 this press release.
^2 GAAP net income excludes income attributable to non-controlling and
redeemable interests in Consolidated Funds.

Distributable earnings were $48.6 million for the three months ended June30,
2014 compared to $67.8 million for the three months ended June30, 2013,
driven by lower net realized performance fees of $10.1 million and a decline
of realized investment income of $10.8 million. The decline in net realized
performance fees was attributable to reduced exit activity within the Private
Equity Group and the decline in realized net investment income was
attributable to lower fund liquidations within the Tradable Credit Group
compared to the three months ended June30, 2013. Distributable earnings were
$102.9 million for the six months ended June30, 2014 compared to $130.6
million for the six months ended June30, 2013. The decline was driven by a
reduction in net realized performance fees of $13.6 million and lower realized
investment income.

For the second quarter, distributable earnings after applicable income taxes
allocated to common unitholders were $14.4 million or $0.18 per common unit.
Ares declared a second quarter distribution of $0.18 per common unit payable
on August29, 2014 to common unitholders of record as of August25, 2014.

Ares has also provided additional information in its Second Quarter 2014
Earnings Presentation which can be viewed at www.aresmgmt.com under “Investors
Resources – Presentations and Reports.”


  ARES MANAGEMENT, L.P.

  KEY PERFORMANCE METRICS AS OF JUNE 30, 2014
                                               
  $ in thousands      Three months ended            Six months ended
  unless              June 30,                      June 30,
  otherwise noted
                       2014        2013          2014         2013
                                                               
  Management Fees
  (includes ARCC
  Part I Fees of
  $25,666 and
  $25,661 for the
  three
  monthsended
  June 30,
  2014 and 2013,      $ 143,403      $ 113,220      $ 283,264       $ 221,850
  respectively
  and $53,984
  and $49,497,
  for the six
  months
  endedJune 30,
  2014 and
  2013,
  respectively)
  Other Fees
  (Admin. & Deal        6,576          4,321          13,441          8,982
  Income)
  Compensation &        (88,742)       (68,448)       (179,096)       (133,364)
  Benefits ^(1)
  General
  &Administrative    (26,198)    (18,541)    (51,612)     (31,867)
  Expenses ^(2)
  Fee Related         $ 35,040       $ 30,553       $ 65,999        $ 65,601
  Earnings
                                                                                
  Net Performance     $ 18,647       $ (7,284)      $ 41,353        $ 29,127
  Fees
  Net Investment     21,364      (5,121)     45,102       17,290
  Income
  Performance
  Related             $ 40,011       $ (12,405)     $ 86,455        $ 46,417
  Earnings (Loss)
                                                                                
  Economic Net        $ 75,051       $ 18,148       $ 152,454       $ 112,018
  Income
  Economic Net
  Income After        $ 69,966                      $ 142,441
  Income Taxes
  ^(3)
  Economic Net
  Income After        $ 0.33                        $ 0.67
  Income Taxes
  per Unit ^ (3)
  Distributable       $ 48,553       $ 67,762       $ 102,892       $ 130,553
  Earnings
  Distributable
  Earnings After
  Income Taxes        $ 0.18                        $ 0.40
  per Common Unit
  ^ (4)
                                                                                
  Other Data
  Accrued
  Incentives          $ 525,826      $ 404,063      $ 525,826       $ 404,063
  (Gross)
  Accrued
  Incentives          $ 190,627      $ 171,893      $ 190,627       $ 171,893
  (Net)
  Management Fees
  as a Percentage       88.5%          106.9%         87.3%           88.4%
  of Total Fee
  Revenue ^(5)
                                                                                

(1) Includes compensation and benefits attributable to OMG of $26.0 million
and $19.6 million for the three months ended June30, 2014 and 2013,
respectively, and $53.6 million and $38.7 million for the six months ended
June30, 2014 and 2013, respectively, which is not allocated to a business
segment.
(2) Includes G&A attributable to OMG of $13.0 million and $8.6 million for the
three months ended June30, 2014 and 2013, respectively, and $26.5 million and
$14.2 million for the six months ended June30, 2014 and 2013, respectively,
which is not allocated to a business segment.
(3) Represents pro forma results assuming Ares IPO and reorganization had
taken place on January1, 2014. Total units of 212,170,186 include both common
units and Ares Operating Group Units that are exchangeable for common units on
a one-for-one basis.
(4) Distributable earnings attributable to common unitholders is presented on
a pro forma basis as if Ares’ IPO occurred on January1, of 2014 for the first
quarter of 2014, and actual for the second quarter of 2014. The per unit
calculation uses total common units outstanding. See “Exhibit G. Per Unit
Calculations For the Three Months Ended June 30, 2014” for more detail.
(5) Total fee revenue is calculated as management fees plus net performance
fees.

Management Fee Revenue.Management fee revenue increased $30.2 million to
$143.4 million for the three months ended June30, 2014 compared to $113.2
million in the same period in 2013. The increase was driven by an increase in
management fees primarily within (i)the Direct Lending Group as Ares Capital
Corporation (“ARCC”) and certain European funds deployed additional capital,
(ii)the Real Estate Group due to $12.3 million in management fees from the
funds acquired in the AREA Acquisition that occurred during the third quarter
of 2013, and $4.5 million from new funds and (iii)the Tradable Credit Group
due to new funds launched in 2014.

Compensation and Benefits. Compensation and benefits increased by $20.3
million for the three months ended June30, 2014 compared to the same period
in 2013. The increase was primarily attributable to an increase of $8.1
million from new personnel from the AREA Acquisition, as well as more than 80
new hires.

General and Administrative Expenses. General and administrative expenses
increased by $7.7 million to $26.2 million for the three months ended June30,
2014 compared to the three months ended June30, 2013, due primarily to
increases in consulting expenses and to increases in office expenses due to
the AREA Acquisition.

Fee Related Earnings. FRE increased to $35.0 million for the three months
ended June30, 2014 compared to $30.6 million for the same period in 2013,
primarily due to the increase in management fees and administrative fees
received from the Company’s affiliated funds. The increase in FRE was
partially offset by the increase in compensation and benefits and general and
administrative expenses.

Performance Related Earnings. PRE was $40.0 million for the three months ended
June30, 2014 compared to $(12.4) million for the same period in 2013. The
increase in PRE was primarily attributable to an increase of $26.5 million in
net investment income and $25.9 million in net performance fees, primarily
driven by the Private Equity Group.

Economic Net Income. ENI was $75.1 million for the three months ended June30,
2014 compared to $18.2 million for the same period in 2013. The increase in
ENI was driven by a $4.5 million increase in FRE, and the aforementioned
increase in PRE. ENI after the provision for taxes was $69.9 million, or $0.33
per unit, for the second quarter of 2014. The effective tax rate was 6.8% for
the three months ended June30, 2014.

Distributable Earnings. Total distributable earnings decreased by $19.2
million for the three months ended June30, 2014 compared to the same period
in 2013. This decrease was primarily driven by a $10.1 million decrease in net
realized performance fees and a $10.8 million decrease in realized investment
income. The decrease in DE was partially offset by a $4.5 million increase in
FRE.

Accrued Incentives Fees. Net accrued incentive fees as of June30, 2014
increased by $18.7 million to $190.6 million compared to $171.9 million as of
June30, 2013. The increase in net accrued incentive fees was attributable to
the increasing portfolio company valuations within the Private Equity and
Direct Lending Groups.

                             
  Assets Under Management
                                                                     
                                  AUM
                                  For the three       For the twelve
  ($ in millions)                 months ended     months ended
                                  June 30, 2014       June 30, 2014
  Beginning of Period AUM         $   77,046          $    60,918
  Acquisitions                        37                   6,128
  Commitments ^(1)                    4,426                19,429
  Capital Reduction ^(2)              (1,633)              (5,781)
  Distribution ^(3)                   (1,381)              (6,084)
  Change in Fund Value ^(4)           743                  4,629
  End of Period AUM               $   79,238          $    79,238
  Average AUM                     $   78,142          $    70,078
                                                                     

(1) Represents 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 equity offerings by our publicly traded
vehicles.
(2) Represents the permanent reduction in leverage during the period.
(3) Represents distributions and redemptions net of recallable amounts.
(4) Includes fund net income, including interest income, realized and
unrealized gains (losses), fees and expenses and the impact of foreign
currency.

Total AUM was $79.2 billion as of June30, 2014, an increase of $2.2 billion,
or 2.8%, compared to total AUM of $77.0 billion as of March31, 2014. The
increase in AUM was primarily due to $4.4 billion in new commitments raised,
which consisted of (i)$1.5 billion to our leveraged loan funds ($638 million
in equity commitments and $843 million in debt commitments), (ii)$889 million
in equity commitments to our high yield funds, (iii)$338 million in equity
commitments to our Alternative Credit funds, (iv)$958 million in our Direct
Lending funds ($677 million in equity and $281 million in debt) and (v)$440
million in equity commitments in Real Estate funds. The increase in AUM was
partially offset by a capital reduction of $1.6 billion primarily in the
Tradable Credit Group. Distributions for the three months ended June30, 2014
totaled $1.1 billion, of which $173 million was attributable to the Tradable
Credit Group, $305 million was attributable to the Direct Lending Group, $258
million was attributable to the Private Equity Group and $317 million was
attributable to the Real Estate Group.

For the twelve months ended June30, 2014, AUM increased $18.3 billion, or
30.1%, compared to total AUM of $60.9 billion as of June30, 2013. The
increase in AUM was primarily due to $19.4 billion of new commitments, which
consisted of (i)$8.8 billion to our leveraged loan funds ($2.3 billion in
equity commitments and $6.5 billion in debt commitments), (ii)$1.4 billion in
equity commitments to our high yield funds, (iii)$2.1 billion to our
Alternative Credit funds (comprised of $2.0 billion in equity commitments and
$0.1 billion in debt commitments), (iv)$5.0 billion to our Direct Lending
funds (comprised of $1.9 billion in equity commitments and $3.1 billion in
debt commitments), and (v)$2.2 billion to our Real Estate funds (comprised of
$1.2 billion in equity commitments and $1.0 billion in debt commitments). In
addition, AUM increased $6.1 billion due to the AREA Acquisition in July2013.
The increase in AUM was partially offset by capital reductions of $5.8
billion, of which $5.6 billion was attributable to the Tradable Credit Group.
Distributions for the twelve months ended June30, 2014 totaled $4.6 billion,
of which $1.1 billion was attributable to the Tradable Credit Group, $1.0
billion was attributable to the Private Equity Group, $845 million was
attributable to the Direct Lending Group and $1.6 billion was attributable to
the Real Estate Group.

                                     
  Fee-Earning Assets Under Management
                                          FEAUM
                                          For the three       For the twelve
  ($ in millions)                         months ended     months ended
                                          June 30, 2014       June 30, 2014
  Beginning of Period FEAUM               $   57,228          $   48,867
  Acquisitions                                -                   5,384
  Commitments ^(1)                            1,198               3,778
  Subscriptions / Deployment /                2,927               10,095
  Increase in Leverage ^(2)
  Redemptions / Distributions /               (2,166)             (11,287)
  Decrease in Leverage ^(3)
  Market Appreciation /                       128                 2,953
  (Depreciation) ^(4)
  Change in Fee Basis ^(5)                    (70)                (547)
  End of Period FEAUM                     $   59,244          $   59,244
  Average FEAUM                           $   58,236          $   54,046
                                                                             

(1) Represents new commitments during the period for funds that earn
management fees based on committed capital.
(2) Represents subscriptions, capital deployment and increase in leverage (for
funds that earn fees on a gross asset basis).
(3) Represents redemptions, distributions and decrease in leverage (for funds
that earn fees on a gross asset basis).
(4) Includes fund net income, including interest income, realized and
unrealized gains (losses), fees and expenses and the impact of foreign
currency for funds that earn management fees based on market value.
(5) Represents the change of fee basis from committed capital to invested
capital.

Total Fee Earning Assets Under Management (“FEAUM”) was $59.2 billion as of
June30, 2014, an increase of $2.0 billion, or 3.5%, compared to total FEAUM
of $57.2 billion as of March31, 2014. The increase in FEAUM was primarily due
to Subscriptions / Deployment / Increase in Leverage of $1.5 billion and $1.4
billion in the Tradable Credit Group and Direct Lending Group, respectively.
New commitments of $850 million in the Tradable Credit Group and $342 million
in the Real Estate Group further added to the increase in FEAUM. Partially
offsetting the increase in FEAUM were Redemptions / Distributions / Decreases
in Leverage of $1.4 billion and $412 million from the Tradable Credit Group
and Direct Lending Group, respectively.

For the twelve months ended June30, 2014, FEAUM increased $10.4 billion, or
21.2%, compared to total FEAUM of $48.9 billion as of June30, 2013. The
increase in FEAUM was primarily due to Subscriptions / Deployment / Increase
in Leverage of $10.1 billion, which was mainly comprised of $4.7 billion
attributable to the Tradable Credit Group and $4.7 billion attributable to the
Direct Lending Group. In addition, the AREA Acquisition in July2013
contributed $5.4 billion in FEAUM to the Real Estate Group. The increase in
FEAUM was partially offset by Redemptions / Distributions / Decrease in
Leverage of $11.3 billion, of which $7.5 billion was attributable to the
Tradable Credit Group, $437 million was attributable to the Private Equity
Group, $1.8 billion was attributable to the Direct Lending Group and $1.6
billion was attributable to the Real Estate Group.

                                              
  Incentive Generating AUM and Incentive Eligible AUM

  ($in millions)
                                                                             
                      As of June 30, 2014           As of March 31, 2014
                      Incentive      Incentive      Incentive      Incentive
                      Generating   Eligible       Generating   Eligible
                      AUM            AUM            AUM            AUM
  Tradable Credit     $  4,594       $  7,448       $  4,920       $  7,683
  Group
  Direct Lending         9,513          13,668         8,969          13,474
  Group^(1)
  Private Equity         4,058          9,296          4,075          9,296
  Group
  Real Estate           1,993         5,829         1,550         5,508
  Group
  Total               $  20,158      $  36,241      $  19,514      $  35,961
                                                                             

(1) Includes the applicable IGAUM or IEAUM of ARCC (which totaled $8,067 and
$7,804 as of June30, 2014, respectively, and $9,862, and $9,894 as of
March31, 2014, respectively, as a result of ARCC PartII Fees).

Total Incentive Generating AUM (“IGAUM”) was $20.2 billion as of June30,
2014, an increase of $0.6 billion, or 3.3%, compared to total IEAUM of $19.5
billion as of March31, 2014.

Total Incentive Eligible AUM (“IEAUM”) was $36.2 billion as of June30, 2014,
compared to $36.0 billion as of March31, 2014. Funds not yet contributing
incentive fees as of June30, 2014 primarily include ACOF IV, European Real
Estate Fund III, European Real Estate Fund IV, ACRE and Ares European Loan
Opportunities Fund.

AUM within carry represented approximately 55.4% of Incentive Eligible AUM and
represented 62.0% of Incentive Eligible funds.

                                             
  Available Capital and Assets Under Management Not Yet Earning Fees

  ($ in millions)
                                                                             
                    As of June 30, 2014            As of March 31, 2014
                    Available     AUM Not Yet      Available     AUM Not Yet
                    Capital     Earning Fees     Capital     Earning
                                                                 Fees
  Tradable          $  5,418      $   2,061        $  5,094      $   1,657
  Credit Group
  Direct               7,098          6,784           7,177          6,894
  Lending Group
  Private              4,369          727             4,406          737
  Equity Group
  Real Estate         2,083         620            1,516         519
  Group
  Total             $  18,969     $   10,191       $  18,193     $   9,807
                                                                             

Total available capital was $19.0 billion as of June30, 2014, an increase of
$0.8 billion or 4.3%, compared to $18.2 billion as of March31, 2014. Total
AUM Not Yet Earnings Fees was $10.2 billion, an increase of $0.4 billion or
3.9% compared to $9.8 billion as of March31, 2014.

Results Excluding Consolidated Funds

Net income of the Company excluding the effect of the Consolidated Funds for
the three months ended June30, 2014 was $2.7 million.

Investment Capacity and Liquidity

As of June30, 2014, our cash and cash equivalents were $87.4 million,
investments at fair value were $585.2 million, and net performance fees
receivable were $190.6 million. As of June30, 2014, the Company had a $1.0
billion revolving credit facility with approximately $848.0 million in
available capital.

 
                                                    
  ($ in thousands)                     June 30, 2014    December 31, 2013
                                                       
  Cash and cash equivalents            $   87,445          $     89,802
  Investments, at fair value               585,157               504,291
  Debt obligations                         202,869               153,119
  Net performance fees                     190,627               185,773
  receivable
                                                                             

Distribution

On August13, 2014, the board of directors of our general partner declared a
quarterly distribution of $0.18 per common unit to common unitholders of
record at the close of business on August25, 2014, payable on August29,
2014.

Recent Developments

  *On July 16, 2014, Ares Capital Corporation completed an equity offering
    raising $258 million in net proceeds. Ares Capital Corporation is
    externally managed by an affiliate of the Company.
  *On July30, 2014, Ares Management LLC agreed to provide credit support to
    a new $75 million credit facility entered into by a wholly owned
    subsidiary of ACRE with City National Bank, a national banking
    association. Ares Management LLC is the parent entity to ACRE’s external
    manager and will receive a credit support fee of 1.50% per annum.
  *On August4, 2014, the Company announced the pricing of Ares XXXI CLO
    Ltd., a $1.26 billion Collateralized Loan Obligation (“CLO”) and the
    largest in the firm’s history. Ares XXXI is sponsored by Ares’ Tradable
    Credit Group and is one of the largest CLOs raised in the market since
    2007. Ares XXXI is primarily comprised of broadly syndicated First Lien
    Senior Secured U.S. Bank Loans. The closing of Ares XXXI is expected by
    the end of the third quarter, subject to customary closing conditions.
  *On August 7, 2014, the Company’s Tradable Credit Group held a first
    closing of $722 million for its fourth special situations fund.

Conference Call and Webcast Information

On Wednesday August13, 2014, the Company invites all interested persons to
attend its webcast/conference call at 12:00p.m. (Eastern Time) to discuss its
second quarter 2014 financial 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 pageof
the Investor Resources section of our website at http://www.aresmgmt.com.
Please visit the website to test your connection before the webcast. Domestic
callers can access the conference call by dialing (888)-317-6003.
International callers can access the conference call by dialing +1
(412)-317-6061. All callers will need to enter the Participant Elite Entry
Number 6085119 followed by the # sign and reference “Ares Management, L.P.”
once connected with the operator. All callers are asked to dial in 10-15
minutes prior to the call so that name and company information can be
collected. For interested parties, an archived replay of the call will be
available through August26, 2014 at 5:00p.m. (Eastern Time) to domestic
callers by dialing (877)-344-7529 and to international callers by dialing
+1(412)-317-0088. For all replays, please reference conference number
10048809. An archived replay will also be available through August26, 2014 on
a webcast link located on the Home pageof the Investor Resources section of
our website.

About Ares Management, L.P.

Ares is a leading global alternative asset manager with approximately $79
billion of assets under management and approximately 700 employees in more
than 15 offices in the United States, Europe and Asia as of June30, 2014.
Since its inception in 1997, Ares has adhered to a disciplined investment
philosophy that focuses on delivering strong risk-adjusted investment returns
throughout market cycles. Ares believes each of its four distinct but
complementary investment groups in Tradable Credit, Direct Lending, Private
Equity and Real Estate is a market leader based on assets under management and
investment performance. Ares was built upon the fundamental principle that
each group benefits from being part of the greater whole.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995, which
relate to future events or our future performance or financial condition.
These statements are not guarantees of future performance, condition or
results and involve a number of risks and uncertainties. Actual results may
differ materially from those in the 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, L.P.
undertakes no duty to update any forward-looking statements made herein or on
the webcast/conference call.

Nothing in this press release constitutes an offer to sell or solicitation of
an offer to buy any securities of Ares.

Available Information

Ares Management, L.P.’s filings with the Securities and Exchange Commission,
press releases, earnings releases and other financial information are
available on its website at www.aresmgmt.com. The contents of such website are
not and should not be deemed to be incorporated by reference herein.

Appendix

                                                    
  ExhibitA. Operating Segments

  ($ in millions)
                                                                     
                            Available     Fair Value of     AUM
                            Capital       Capital
  Tradable Credit Group     $  5,418      $    26,979       $ 32,397
  Direct Lending Group         7,098           21,074         28,172
  Private Equity Group         4,369           5,393          9,762
  Real Estate Group            2,083           6,824          8,907
  Total                     $  18,969     $    60,269       $ 79,238
                                                                     

                                                                                                    
  ExhibitB. Segment Results

  ($ in thousands)
  As of and for the three months ended June30, 2014:
                                                                                                                                
                         Private        Direct         Tradable       Real           Total                          Total
                         Equity         Lending        Credit         Estate         Segments        OMG            Stand
                         Group          Group          Group          Group                                         Alone
                                                                                                                                
  Management fees
  (includes, in the
  case of the Direct     $ 22,610       $ 64,805       $ 36,072       $ 19,916       $ 143,403       $ —            $ 143,403
  Lending Group,
  $25,666 of ARCC
  Part I Fees)
  Previously
  deferred                —             —             —             —             —              —             —
  management fees
  Total management         22,610         64,805         36,072         19,916         143,403         —              143,403
  fees
  Administrative
  fees and other           94             276            33             1,496          1,899           4,678          6,576
  income
  General and
  administrative           (2,738)        (2,245)        (3,897)        (4,332)        (13,212)        (12,986)       (26,198)
  expenses
  Compensation and        (7,886)       (32,753)      (10,453)      (11,689)      (62,781)       (25,961)      (88,742)
  benefits
  Fee related             12,080        30,083        21,755        5,391         69,309         (34,269)      35,040
  earnings (loss)
  Performance              4,615          —              24,283         —              28,898          —              28,898
  fees—realized
  Performance              42,002         3,600          (11,618)       7,726          41,710          —              41,710
  fees—unrealized
  Performance fee
  compensation             (3,690)        —              (15,986)       —              (19,676)        —              (19,676)
  expense—realized
  Performance fee
  compensation            (32,824)      (2,075)       3,180         (566)         (32,285)       —             (32,284)
  expense—unrealized
  Net performance         10,103        1,525         (141)         7,160         18,647         —             18,647
  fees
  Investment income        2,647          (934)          6,568          (301)          7,980           —              7,980
  (loss)—realized
  Investment income        11,861         216            (2,533)        635            10,179          —              10,179
  (loss)—unrealized
  Interest and other       584            144            4,328          187            5,243           —              5,243
  income
  Interest expense        (785)         (332)         (543)         (378)         (2,038)        —             (2,037)
  Net investment          14,307        (906)         7,820         143           21,364         —             21,364
  income (loss)
                                                                                                                                
  Performance
  related earnings        24,410        619           7,679         7,303         40,011         —             40,011
  (loss)
                                                                                                                                
  Economic net           $ 36,490       $ 30,702       $ 29,434       $ 12,694       $ 109,320       $ (34,269)     $ 75,051
  income (loss)
                                                                                                                                
  Distributable          $ 14,994       $ 28,205       $ 38,852       $ 2,343        $ 84,394        $ (35,841)     $ 48,553
  earnings (loss)
                                                                                                                                
  Total assets           $ 547,980      $ 199,527      $ 577,397      $ 295,433      $ 1,620,337     $ 10,560       $ 1,630,898
                                                                                                                                

                                                                                                   
  ExhibitB. Segment Results (continued)

  ($in thousands)

  As of and for the three months ended June30, 2013:
                                                                                                                               
                         Private        Direct         Tradable       Real          Total                          Total
                         Equity         Lending        Credit         Estate        Segments        OMG            Stand
                         Group          Group          Group          Group                                        Alone
                                                                                                                               
  Management fees
  (includes, in the
  case of the Direct
  Lending                $ 23,087       $ 56,251       $ 30,254       $ 2,489       $ 112,081       $ —            $ 112,081
  Group, $25,661
  of ARCC Part I
  Fees)
  Previously
  deferred                —             —             1,139         —            1,139          —             1,139
  management fees
  Total management         23,087         56,251         31,393         2,489         113,220         —              113,220
  fees
  Administrative
  fees and other           156            82             54             10            302             4,020          4,321
  income
  General and
  administrative           (3,016)        (2,259)        (3,488)        (1,167)       (9,930)         (8,611)        (18,541)
  expenses
  Compensation and        (7,007)       (29,617)      (8,587)       (3,634)      (48,845)       (19,603)      (68,448)
  benefits
  Fee related             13,220        24,457        19,372        (2,302)      54,747         (24,194)      30,553
  earnings (loss)
  Performance              39,752         —              22,647         —             62,399          —              62,399
  fees—realized
  Performance              (48,063)       (1,100)        (24,565)       —             (73,728)        —              (73,728)
  fees—unrealized
  Performance fee
  compensation             (31,813)       —              (11,273)       —             (43,086)        —              (43,086)
  expense—realized
  Performance fee
  compensation            38,506        563           8,062         —            47,131         —             47,131
  expense—unrealized
  Net performance         (1,618)       (537)         (5,129)       —            (7,284)        —             (7,284)
  fees
  Investment income        3,576          2,304          13,477         (43)          19,314          —              19,314
  (loss)—realized
  Investment income        (6,265)        (4,727)        (7,952)        (8,144)       (27,088)        —              (27,088)
  (loss)—unrealized
  Interest and other       2,423          1,317          181            1,097         5,018           —              5,018
  income
  Interest expense        (900)         (627)         (628)         (210)        (2,365)        —             (2,365)
  Net investment          (1,166)       (1,733)       5,078         (7,300)      (5,121)        —             (5,121)
  income (loss)
  Performance
  related earnings        (2,784)       (2,270)       (51)          (7,300)      (12,405)       —             (12,405)
  (loss)
  Economic net           $ 10,436       $ 22,187       $ 19,321       $ (9,602)     $ 42,342        $ (24,194)     $ 18,148
  income (loss)
                                                                                                                               
  Distributable          $ 25,542       $ 25,780       $ 43,014       $ (1,956)     $ 92,380        $ (24,618)     $ 67,762
  earnings (loss)
                                                                                                                               
  Total assets           $ 341,284      $ 211,429      $ 604,236      $ 45,851      $ 1,202,800     $ 9,740        $ 1,212,540
                                                                                                                               

                                                                                                    
  ExhibitB. Segment Results (continued)

  ($in thousands)

  As of and for the six months ended June30, 2014:
                                                                                                                                
                         Private        Direct         Tradable       Real           Total                          Total
                         Equity         Lending        Credit         Estate         Segments        OMG            Stand
                         Group          Group          Group          Group                                         Alone
                                                                                                                                
  Management fees
  (includes, in the
  case of the Direct
  Lending                $ 45,806       $ 131,009      $ 69,765       $ 36,684       $ 283,264       $ —            $ 283,264
  Group, $53,984
  of ARCC Part I
  Fees)
  Previously
  deferred                —             —             —             —             —              —             —
  management fees
  Total management         45,806         131,009        69,765         36,684         283,264                        283,264
  fees
  Administrative
  fees and other           170            366            50             2,786          3,372           10,071         13,441
  income
  General and
  administrative           (4,738)        (4,159)        (7,593)        (8,600)        (25,090)        (26,522)       (51,612)
  expenses
  Compensation and        (16,081)      (64,965)      (21,258)      (23,174)      (125,478)      (53,618)      (179,096)
  benefits
  Fee related             25,157        62,251        40,964        7,696         136,068        (70,069)      65,999
  earnings (loss)
  Performance              17,700         39             34,495         —              52,234          —              52,234
  fees—realized
  Performance              63,344         5,893          1,892          10,675         81,804          —              81,804
  fees—unrealized
  Performance fee
  compensation             (14,162)       (28)           (21,492)       —              (35,682)        —              (35,682)
  expense—realized
  Performance fee
  compensation            (49,736)      (3,525)       (3,176)       (566)         (57,003)       —             (57,003)
  expense—unrealized
  Net performance         17,146        2,379         11,719        10,109        41,353         —             41,353
  fees
  Investment income        3,779          (1,532)        24,586         429            27,262          —              27,262
  (loss)—realized
  Investment income        27,017         1,739          (15,400)       (227)          13,129          —              13,129
  (loss)—unrealized
  Interest and other       3,368          243            4,579          197            8,387           —              8,386
  income
  Interest expense        (1,407)       (636)         (930)         (703)         (3,676)        —             (3,676)
  Net investment          32,757        (186)         12,835        (304)         45,102         —             45,102
  income (loss)
                                                                                                                                
  Performance
  related earnings        49,903        2,193         24,554        9,805         86,455         —             86,455
  (loss)
                                                                                                                                
  Economic net           $ 75,060       $ 64,444       $ 65,518       $ 17,501       $ 222,523       $ (70,069)     $ 152,454
  income (loss)
                                                                                                                                
  Distributable          $ 33,637       $ 59,212       $ 79,556       $ 3,841        $ 176,246       $ (73,354)     $ 102,892
  earnings (loss)
                                                                                                                                
  Total assets           $ 547,980      $ 199,527      $ 577,397      $ 295,433      $ 1,620,337     $ 10,560       $ 1,630,898
                                                                                                                                

                                                                                                    
  ExhibitB. Segment Results (continued)

  ($in thousands)

  As of and for the six months ended June30, 2013:
                                                                                                                                
                         Private        Direct         Tradable       Real           Total                          Total
                         Equity         Lending        Credit         Estate         Segments        OMG            Stand
                         Group          Group          Group          Group                                         Alone
                                                                                                                                
  Management fees
  (includes, in the
  case of the Direct
  Lending                $ 46,630       $ 107,701      $ 61,424       $ 4,956        $ 220,711       $ —            $ 220,711
  Group, $49,497
  of ARCC Part I
  Fees)
  Previously
  deferred                —             —             1,139         —             1,139          —             1,139
  management fees
  Total management         46,630         107,701        62,563         4,956          221,850                        221,850
  fees
  Administrative
  fees and other           273            165            54             14             506             8,476          8,982
  income
  General and
  administrative           (5,254)        (4,061)        (5,963)        (2,425)        (17,703)        (14,164)       (31,867)
  expenses
  Compensation and        (13,603)      (56,519)      (17,354)      (7,202)       (94,678)       (38,686)      (133,364)
  benefits
  Fee related             28,046        47,286        39,300        (4,657)       109,975        (44,374)      65,601
  earnings (loss)
  Performance              48,765         —              31,686         —              80,451          —              80,451
  fees—realized
  Performance              (22,551)       399            29,785         —              7,633           —              7,633
  fees—unrealized
  Performance fee
  compensation             (39,021)       —              (11,309)       —              (50,330)        —              (50,330)
  expense—realized
  Performance fee
  compensation            18,236        (260)         (26,603)      —             (8,627)        —             (8,627)
  expense—unrealized
  Net performance         5,429         139           23,559        —             29,127         —             29,127
  fees
  Investment income        4,502          1,479          32,990         (80)           38,891          —              38,891
  (loss)—realized
  Investment income        (3,834)        (883)          (11,908)       (7,094)        (23,719)        —              (23,719)
  (loss)—unrealized
  Interest and other       2,640          2,353          820            1,096          6,909           —              6,914
  income
  Interest expense        (1,819)       (1,265)       (1,285)       (422)         (4,791)        —             (4,790)
  Net investment          1,489         1,684         20,617        (6,500)       17,290         —             17,290
  income (loss)
  Performance
  related earnings        6,918         1,823         44,176        (6,500)       46,417         —             46,417
  (loss)
                                                                                                                                
  Economic net           $ 34,964       $ 49,109       $ 83,476       $ (11,157)     $ 156,392       $ (44,374)     $ 112,018
  income (loss)
                                                                                                                                
  Distributable          $ 42,106       $ 48,006       $ 90,949       $ (5,419)      $ 175,642       $ (45,089)     $ 130,553
  earnings (loss)
                                                                                                                                
  Total assets           $ 341,284      $ 211,429      $ 604,236      $ 45,851       $ 1,202,800     $ 9,740        $ 1,212,540
                                                                                                                                

                                                    
  ExhibitC. Condensed Consolidated Statements of Financial Condition and
  Statements of Operations (GAAP Financials)

  ($ in thousands, except share data)
                                                                             
                                       As of June 30,     As of December 31,
                                       2014               2013
                                       (unaudited)        (Predecessor)
  Assets
  Cash and cash equivalents            $  87,445          $    89,802
  Restricted cash and cash                78,378               13,344
  equivalents
  Investments, at fair value              138,453              89,438
  Performance fees receivable             138,987              137,682
  Derivative assets, at fair value        1,774                1,164
  Due from affiliates                     119,861              108,920
  Intangible assets, net                  53,326               68,742
  Goodwill                                85,806               58,159
  Other assets                            75,237               73,600
  Assets of Consolidated Funds:
  Cash and cash equivalents               1,395,650            1,638,003
  Restricted cash and securities          100                  —
  Investments, at fair value              18,666,232           20,823,338
  Loan held for investment, net           84,088               —
  Due from affiliates                     10,669               2,010
  Dividends and interest                  93,855               133,158
  receivable
  Receivable for securities sold          512,994              427,871
  Derivative assets, at fair value        4,873                14,625
  Other assets                           44,602              25,528
  Total assets                         $  21,592,330      $    23,705,384
  Liabilities
  Debt obligations                     $  202,869         $    153,119
  Accounts payable, accrued               141,452              67,486
  expenses and other liabilities
  Deferred tax liability, net             22,694               21,002
  Performance fee compensation            335,199              295,978
  payable
  Equity compensation put option          20,000               —
  liability
  Derivative liabilities, at fair         2,258                2,907
  value
  Accrued compensation                    84,076               132,917
  Due to affiliates                       23,083               32,690
  Liabilities of Consolidated
  Funds:
  Accounts payable, accrued               77,921               95,839
  expenses and other liabilities
  Payable for securities purchased        1,064,439            945,115
  Derivative liabilities, at fair         55,329               75,115
  value
  Due to affiliates                       2,643                2,695
  Securities sold short, at fair          —                    1,633
  value
  Deferred tax liability, net             24,321               35,904
  CLO loan obligations                    11,266,453           11,774,157
  Fund borrowings                         1,021,593            2,070,598
  Mezzanine debt                         332,077             323,164
  Total liabilities                      14,676,407          16,030,319
  Commitments and contingencies
  Redeemable interest in                  1,102,350            1,093,770
  Consolidated Funds
  Redeemable interest in Ares             24,977               40,751
  Operating Group entities
  Non-controlling interest in
  Consolidated Funds:
  Non-controlling interest in             4,938,369            5,691,874
  Consolidated Funds
  Equity appropriated for                78,192              155,261
  Consolidated Funds
  Non-controlling interest in            5,016,561           5,847,135
  Consolidated Funds
  Non-controlling interest in Ares        478,293              167,731
  Operating Group Entities
  Members’ equity and common stock        —                    525,678
  of Predecessor
  Controlling interest in Ares
  Management, L.P.:
  Partners’ Capital (80,667,664
  and 0 units, issued and
  outstanding at June 30, 2014         293,124              —
  and December 31, 2013,
  respectively)
  Accumulated other comprehensive        618                 —
  gain
  Total controlling interest in          293,742             —
  Ares Management, L.P.
  Total equity                           5,788,596           6,540,544
  Total liabilities, redeemable
  interests, non-controlling           $  21,592,330      $    23,705,384
  interests and equity
                                                                             

                                                    
  ExhibitC. Condensed Consolidated Statements of Financial Condition and Statements of
  Operations (GAAP Financials) (continued)

  ($ in thousands, except share data)
                                                                                         
                       For the Three Months Ended         For the Six Months Ended
                       June 30,                           June 30,
                        2014           2013            2014           2013
  Revenues                              (Predecessor)                      (Predecessor)
  Management fees
  (includes ARCC
  Part I Fees of
  $25,666and
  $25,661 for
  the three
  months ended
  June
  30,2014and         $ 114,426        $  81,812         $ 224,975        $  160,206
  2013,
  respectively,
  and $53,984,
  and $49,497for
  the six months
  ended June 30,
  2014 and 2013,
  respectively)
  Performance fees       11,175            3,169            27,389            28,323
  Other fees            6,017            4,321           12,882           8,310
  Total revenues        131,618          89,302          265,246          196,839
  Expenses
  Compensation and       150,970           75,559           246,663           147,534
  benefits
  Performance fee        51,960            (4,045)          92,685            58,957
  compensation
  General,
  administrative         39,460            25,664           78,235            42,646
  and other
  expenses
  Consolidated          16,712           12,615          25,649           73,723
  Funds expenses
  Total expenses        259,102          109,793         443,232          322,860
  Other income
  (expense)
  Interest and           3,877             2,245            4,001             2,896
  other income
  Interest expense       (2,037)           (2,365)          (3,676)           (4,790)
  Net realized
  gain (loss) on         (1,403)           1,898            (1,469)           761
  investments
  Net change in
  unrealized
  appreciation           9,703             (11,141)         13,849            (2,856)
  (depreciation)
  on investments
  Interest and
  other income of        203,338           302,040          548,683           613,530
  Consolidated
  Funds
  Interest expense
  of Consolidated        (203,741)         (107,012)        (348,783)         (232,970)
  Funds
  Net realized
  gain (loss) on
  investments of         47,840            8,915            102,805           66,871
  Consolidated
  Funds
  Net change in
  unrealized
  appreciation
  (depreciation)        261,396          (304,511)       328,740          (200,259)
  on investments
  of Consolidated
  Funds
  Total other           318,973          (109,931)       644,150          243,183
  income (expense)
  Income (loss)          191,489           (130,422)        466,164           117,162
  before taxes
  Income tax
  expense               5,267            6,312           (1,428)          30,762
  (benefit)
  Net income            186,222          (136,734)       467,592          86,400
  (loss)
  Less: Net income
  (loss)
  attributable to
  non-controlling        170,140           (134,676)        358,273           (53,264)
  interests in
  Consolidated
  Funds
  Less: Net Income
  (loss)
  attributable to
  redeemable             13,413            (4,877)          50,461            62,297
  interests in
  Consolidated
  Funds
  Less: Net income
  (loss)
  attributable to
  non-controlling        (15,150)          551              40,633            15,116
  interests in
  Ares Operating
  Group Entities
  Less: Net income
  attributable to
  controlling            —                 2,235            —                 61,391
  interests in
  Predecessor
  Less: Net income
  (loss)
  attributable to
  redeemable            (23)             33              383              860
  interests in
  Ares Operating
  Group Entities
  Net income
  (loss)
  attributable to      $ 17,842         $  —              $ 17,842         $  —
  Ares Management,
  L.P.
  Net income
  (loss)
  attributable to
  Ares Management,
  L.P. per common
  unit
  Basic                $ 0.22                             $ 0.22
  Diluted              $ 0.22                             $ 0.22
  Weighted-average
  common units
  Basic                 79,424,077                        79,424,077
  Diluted               80,004,833                        80,004,833
                                                                                         

                  
  ExhibitD. Supplemental Financial Information Consolidating Schedules

  ($ in thousands, except share data)
                                                                                      
                      As of June 30, 2014
                      Consolidated     Consolidated
                      Company        Funds          Eliminations   Consolidated
                      Entities
  Assets
  Cash and cash       $  87,445        $ —              $  —             $ 87,445
  equivalents
  Restricted cash
  and cash               78,378          —                 —               78,378
  equivalents
  Investments, at        585,157         —                 (446,704)       138,453
  fair value
  Performance            525,826         —                 (386,839)       138,987
  fees receivable
  Derivative
  assets, at fair        1,774           —                 —               1,774
  value
  Due from               137,851         —                 (17,990)        119,861
  affiliates
  Intangible             53,326          —                 —               53,326
  assets, net
  Goodwill               85,806          —                 —               85,806
  Other assets           75,335          —                 (98)            75,237
  Assets of
  Consolidated
  Funds
  Cash and cash          —               1,395,650         —               1,395,650
  equivalents
  Restricted cash        —               100               —               100
  and securities
  Investments, at        —               18,666,232        —               18,666,232
  fair value
  Loans held for         —               84,088            —               84,088
  investment, net
  Due from               —               11,190            (521)           10,669
  affiliates
  Dividends and
  interest               —               93,855            —               93,855
  receivable
  Receivable for         —               512,994           —               512,994
  securities sold
  Derivative
  assets, at fair        —               4,873             —               4,873
  value
  Other assets          —              44,602           —              44,602
  Total assets        $  1,630,898     $ 20,813,584     $  (852,152)     $ 21,592,330
  Liabilities
  Debt                $  202,869       $ —              $  —             $ 202,869
  obligations
  Accounts
  payable,
  accrued                142,641         —                 (1,189)         141,452
  expenses and
  other
  liabilities
  Deferred tax           22,694          —                 —               22,694
  liability, net
  Performance fee
  compensation           335,199         —                 —               335,199
  payable
  Equity
  Compensation           20,000          —                 —               20,000
  put option
  liability
  Derivative
  liabilities, at        2,258           —                 —               2,258
  fair value
  Accrued                84,076          —                 —               84,076
  compensation
  Due to                 24,151          —                 (1,068)         23,083
  affiliates
  Liabilities of
  Consolidated
  Funds
  Accounts
  payable,
  accrued                —               88,864            (10,943)        77,921
  expenses and
  other
  liabilities
  Payable for
  securities             —               1,064,439         —               1,064,439
  purchased
  Derivative
  liabilities, at        —               55,329            —               55,329
  fair value
  Due to                 —               83,899            (81,256)        2,643
  affiliates
  Deferred tax           —               24,321            —               24,321
  liability, net
  CLO loan               —               11,321,637        (55,184)        11,266,453
  obligations
  Fund borrowings        —               1,021,593         —               1,021,593
  Mezzanine debt        —              332,077          —              332,077
  Total                 833,888        13,992,159       (149,640)      14,676,407
  liabilities
  Commitments and
  contingencies
  Redeemable
  interest in            —               1,102,350         —               1,102,350
  Consolidated
  Funds
  Redeemable
  interest in            24,977          —                 —               24,977
  Ares Operating
  Group entities
  Non-controlling
  interest in
  Consolidated
  Funds:
  Non-controlling
  interest in            —               5,640,879         (702,510)       4,938,369
  Consolidated
  Funds
  Equity
  appropriated
  for                   —              78,192           —              78,192
  Consolidated
  Funds
  Non-controlling
  interest in           —              5,719,071        (702,510)      5,016,561
  Consolidated
  Funds
  Non-controlling
  interest in            478,293         —                 —               478,293
  Ares Operating
  Group Entities
  Controlling
  interest in
  Ares
  Management,
  L.P.:
  Partners’
  Capital
  (80,667,664            293,124         —                 —               293,124
  units, issued
  and
  outstanding)
  Accumulated
  other                 618            —                —              618
  comprehensive
  gain
  Total
  controlling
  interest in           293,742        —                —              293,742
  Ares
  Management,
  L.P.
  Total equity          772,035        5,719,071        (702,510)      5,788,596
  Total
  liabilities,
  redeemable
  interests,          $  1,630,900     $ 20,813,580     $  (852,150)     $ 21,592,330
  non-controlling
  interests and
  equity
                                                                                      

                  
  ExhibitD. Supplemental Financial Information Consolidating Schedules (continued)

  ($ in thousands)
                                                                                      
                      As of December 31, 2013
                      Consolidated     Consolidated
                      Company        Funds          Eliminations   Consolidated
                      Entities
  Assets
  Cash and cash       $  89,802        $ —              $  —             $ 89,802
  equivalents
  Restricted cash
  and cash               13,344          —                 —               13,344
  equivalents
  Investments, at        504,291         —                 (414,853)       89,438
  fair value
  Performance            481,751         —                 (344,069)       137,682
  fees receivable
  Derivative
  assets, at fair        1,164           —                 —               1,164
  value
  Due from               130,625         —                 (21,705)        108,920
  affiliates
  Intangible             68,742          —                 —               68,742
  assets, net
  Goodwill               58,159          —                 —               58,159
  Other assets           96,904          —                 (23,304)        73,600
  Assets of
  Consolidated
  Funds
  Cash and cash          —               1,638,003         —               1,638,003
  equivalents
  Investments, at        —               20,823,338        —               20,823,338
  fair value
  Due from               —               2,010             —               2,010
  affiliates
  Dividends and
  interest               —               133,158           —               133,158
  receivable
  Receivable for         —               427,871           —               427,871
  securities sold
  Derivative
  assets, at fair        —               14,625            —               14,625
  value
  Other assets          —              27,505           (1,977)        25,528
  Total assets        $  1,444,782     $ 23,066,510     $  (805,908)     $ 23,705,384
  Liabilities
  Debt                $  153,119       $ —              $  —             $ 153,119
  obligations
  Accounts
  payable,
  accrued                69,550          —                 (2,064)         67,486
  expenses and
  other
  liabilities
  Deferred tax           21,002          —                 —               21,002
  liability, net
  Performance fee
  compensation           295,978         —                 —               295,978
  payable
  Derivative
  liabilities, at        2,907           —                 —               2,907
  fair value
  Accrued                132,917         —                 —               132,917
  compensation
  Due to                 35,149          —                 (2,459)         32,690
  affiliates
  Liabilities of
  Consolidated
  Funds
  Accounts
  payable,
  accrued                —               95,839            —               95,839
  expenses and
  other
  liabilities
  Payable for
  securities             —               945,115           —               945,115
  purchased
  Derivative
  liabilities, at        —               75,115            —               75,115
  fair value
  Due to                 —               92,211            (89,516)        2,695
  affiliates
  Securities sold
  short, at fair         —               1,633             —               1,633
  value
  Deferred tax           —               35,904            —               35,904
  liability, net
  CLO loan               —               11,838,396        (64,239)        11,774,157
  obligations
  Fund borrowings        —               2,070,598         —               2,070,598
  Mezzanine debt        —              323,164          —              323,164
  Total                 710,622        15,477,975       (158,278)      16,030,319
  liabilities
  Commitments and
  contingencies
  Redeemable
  interest in            —               1,093,770         —               1,093,770
  Consolidated
  Funds
  Redeemable
  interest in            40,751          —                 —               40,751
  Ares Operating
  Group entities
  Non-controlling
  interest in
  Consolidated
  Funds:
  Non-controlling
  interest in            —               6,339,504         (647,630)       5,691,874
  Consolidated
  Funds
  Equity
  appropriated
  for                   —              155,261          —              155,261
  Consolidated
  Funds
  Non-controlling
  interest in           —              6,494,765        (647,630)      5,847,135
  Consolidated
  Funds
  Non-controlling
  interest in            167,731         —                 —               167,731
  Ares Operating
  Group Entities
  Members’ equity
  and common            525,678        —                —              525,678
  stock of
  Predecessor
  Total equity          693,409        6,494,765        (647,630)      6,540,544
  Total
  liabilities,
  redeemable
  interests,          $  1,444,782     $ 23,066,510     $  (805,908)     $ 23,705,384
  non-controlling
  interests and
  equity
                                                                                      

                  
  ExhibitD. Supplemental Financial Information Consolidating Schedules (continued)

  ($ in thousands)
                                                                                      
                      For the Three Months Ended June 30, 2014
                      Consolidated     Consolidated
                      Company        Funds          Eliminations   Consolidated
                      Entities
  Revenues
  Management fees
  (includes ARCC      $  143,403       $ —              $  (28,977 )     $ 114,426
  Part I Fees of
  $25,666)
  Performance            63,825          —                 (52,650 )       11,175
  fees
  Other fees            6,576         —               (559    )      6,017    
  Total revenues        213,804       —               (82,186 )      131,618  
  Expenses
  Compensation           150,970         —                 —               150,970
  and benefits
  Performance fee        51,960          —                 —               51,960
  compensation
  General,
  administrative         39,460          —                 —               39,460
  and other
  expense
  Consolidated          —             49,692          (32,980 )      16,712   
  Fund expenses
  Total expenses        242,390       49,692          (32,980 )      259,102  
  Other income
  (expense)
  Interest and           4,903           —                 (1,026  )       3,877
  other income
  Interest               (2,037  )       —                 —               (2,037   )
  expense
  Net realized
  gain (loss) on         7,980           —                 (9,383  )       (1,403   )
  investments
  Net change in
  unrealized
  appreciation           17,297          —                 (7,594  )       9,703
  (depreciation)
  on investments
  Interest and
  other income of        —               203,464           (126    )       203,338
  Consolidated
  Funds
  Interest
  expense of             —               (205,766 )        2,025           (203,741 )
  Consolidated
  Funds
  Net realized
  gain (loss) on
  investments of         —               47,840            —               47,840
  Consolidated
  Funds
  Net change in
  unrealized
  appreciation
  (depreciation)        —             261,257         139           261,396  
  on investments
  of Consolidated
  Funds
  Total other
  income                28,143        306,795         (15,965 )      318,973  
  (expense)
  Income (loss)          (443    )       257,103           (65,171 )       191,489
  before taxes
  Income tax
  expense               (3,112  )      8,379           —             5,267    
  (benefit)
  Net income            2,669         248,724         (65,171 )      186,222  
  (loss)
  Less: Net
  income (loss)
  attributable to
  non-controlling        —               233,277           (63,137 )       170,140
  interests in
  Consolidated
  Funds
  Less: Net
  income (loss)
  attributable to
  redeemable             —               15,447            (2,034  )       13,413
  interests in
  Consolidated
  Funds
  Less: Net
  income (loss)
  attributable to
  non-controlling        (15,150 )       —                 —               (15,150  )
  interests in
  Ares Operating
  Group Entities
  Less: Net
  income (loss)
  attributable to
  redeemable            (23     )      —               —             (23      )
  interests in
  Ares Operating
  Group Entities
  Net income
  (loss)
  attributable to     $  17,842       $ —             $  —            $ 17,842   
  Ares
  Management,
  L.P.
                                                                                      

                  
  ExhibitD. Supplemental Financial Information Consolidating Schedules (continued)

  ($ in thousands)
                                                                                      
                      For the Three Months Ended June 30, 2013
                      Consolidated     Consolidated
                      Company        Funds          Eliminations   Consolidated
                      Entities
  Revenues
  Management fees
  (includes ARCC      $  113,220       $  —             $  (31,408)      $  81,812
  Part I Fees of
  $25,661)
  Performance            (11,329)         —                14,498           3,169
  fees
  Other fees            4,321           —               —               4,321
  Total revenues        106,212         —               (16,910)        89,302
  Expenses
  Compensation           75,559           —                —                75,559
  and benefits
  Performance fee        (4,045)          —                —                (4,045)
  compensation
  General,
  administrative         25,664           —                —                25,664
  and other
  expense
  Consolidated          —               34,317          (21,702)        12,615
  Fund expenses
  Total expenses        97,178          34,317          (21,702)        109,793
  Other income
  (expense)
  Interest and           4,702            —                (2,457)          2,245
  other income
  Interest               (2,365)          —                —                (2,365)
  expense
  Net realized
  gain (loss) on         19,314           —                (17,416)         1,898
  investments
  Net change in
  unrealized
  appreciation           (26,770)         —                15,629           (11,141)
  (depreciation)
  on investments
  Interest and
  other income of        —                302,217          (177)            302,040
  Consolidated
  Funds
  Interest
  expense of             —                (108,989)        1,977            (107,012)
  Consolidated
  Funds
  Net realized
  gain (loss) on
  investments of         —                8,915            —                8,915
  Consolidated
  Funds
  Net change in
  unrealized
  appreciation
  (depreciation)        —               (303,652)       (859)           (304,511)
  on investments
  of Consolidated
  Funds
  Total other
  income                (5,119)         (101,509)       (3,303)         (109,931)
  (expense)
  Income (loss)          3,915            (135,826)        1,489            (130,422)
  before taxes
  Income tax
  expense               1,096           5,216           —               6,312
  (benefit)
  Net income            2,819           (141,042)       1,489           (136,734)
  (loss)
  Less: Net
  income (loss)
  attributable to
  non-controlling        —                (135,883)        1,207            (134,676)
  interests in
  Consolidated
  Funds
  Less: Net
  income (loss)
  attributable to
  redeemable             —                (5,159)          282              (4,877)
  interests in
  Consolidated
  Funds
  Less: Net
  income (loss)
  attributable to
  non-controlling        551              —                —                551
  interests in
  Ares Operating
  Group Entities
  Less: Net
  income (loss)
  attributable to
  redeemable            33              —               —               33
  interests in
  Ares Operating
  Group Entities
  Net income
  (loss)
  attributable to     $  2,235         $  —             $  —             $  2,235
  controlling
  interests in
  Predecessor
                                                                                      

<*Story too large*
               
  ExhibitD. Supplemental Financial Information Consolidating Schedules
  (continued)

  ($ in thousands)
                                                                                   
                   For the Six Months Ended June 30, 2014
                   Consolidated     Consolidated
                   Company        Funds          Eliminations   Consolidated
                   Entities
  Revenues
  Management
  fees
  (includes        $   283,264      $      —         $  (58,289)      $   224,975
  ARCC Part I
  Fees of
  $53,984)
  Performance          124,305             —            (96,916)          27,389
  fees
  Other fees          13,441             —           (559)            12,882
  Total               421,010            —           (155,764)        265,246
  revenues
  Expenses
  Compensation         246,663             —            —                 246,663
  and benefits
  Performance
  fee                  92,685              —            —                 92,685
  compensation

[TRUNCATED]
 
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