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]  
Press spacebar to pause and continue. Press esc to stop.