Financial Data and Key Metrics Changes - The first quarter marked the 12th consecutive quarter of sequential fee-related earnings (FRE) growth, with FRE of $93.1 million, an increase of 31% from the same period last year [12][39] - Management fees reached a new record, contributing to a FRE margin of 34%, up from 32% in the previous quarter and 30% in the first quarter of 2019 [39][40] - Realized income for the quarter totaled $134.1 million, representing a 28% increase compared to the first quarter of 2019 [41] Business Line Data and Key Metrics Changes - The company reported record fee-paying assets under management (AUM) exceeding $100 billion for the first time, with a total AUM of $148.6 billion, a 9% increase from the prior year [43][44] - Fee-paying AUM increased to over $102 billion, marking a significant milestone [44] - The company ended the quarter with approximately $33 billion of dry powder available for investment [14][44] Market Data and Key Metrics Changes - The company experienced limited exposure to heavily impacted sectors such as oil and gas, travel, and leisure, with only about 1% of AUM in oil and gas exploration [19][67] - The impact of the COVID-19 pandemic is expected to unfold in three phases, with the first phase marked by severe market disruptions and the second phase characterized by significant fiscal and monetary stimulus [18][20] Company Strategy and Development Direction - The company maintains a management fee-centric business model, primarily generating revenue from permanent capital vehicles and long-dated closed-end fund structures, providing visibility to growing fee-related earnings [13] - The strategic partnership with Sumitomo Mitsui Financial Group aims to enhance distribution in the Japanese market and leverage their balance sheet for growth opportunities [34][35] - The company is focused on providing rescue capital to high-quality companies and is well-positioned to capitalize on potential strategic growth opportunities in the current market environment [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current economic challenges, emphasizing a long U-shaped recovery rather than a quick snapback [48][49] - The company anticipates a prolonged period of less competition, allowing for attractive investment opportunities as the market stabilizes [21][49] - Management highlighted the importance of having robust investment sourcing and capital access capabilities to succeed in the current environment [49] Other Important Information - The company declared a second-quarter common dividend of $0.40 per share, a 25% increase over the prior year's quarterly dividend [7] - The company has at least eight large successor funds and new commingled funds in the market, targeting over $25 billion of incremental capital [25][30] Q&A Session Summary Question: Impact of fundraising timing and pace - Management indicated that fundraising is proceeding as originally scheduled, with some strategies seeing accelerated fundraising due to their suitability for the current environment [52][53] Question: Competitive landscape and bank participation - Management clarified that reduced competition is expected across the entire competitive set, with banks currently less active in underwriting and syndicating leveraged finance products [57][59] Question: Update on energy and travel sector exposure - Management reported that only about 1% of AUM is in oil and gas exploration, with a focus on renewable energy and midstream infrastructure, indicating a well-distributed exposure across the portfolio [67]

Table of Contents Securities registered pursuant to Section 12(g) of the Act: None UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-36429 ARES MANAGEMENT CORPORATION (Exact name of Registrant as s ...

Financial Data and Key Metrics Changes - Ares Management reported a record year with management fee growth exceeding 20% and fee-related earnings growth exceeding 25% in Q4 2019 [6] - Full year fee-related earnings totaled $323.7 million, a 27% increase from 2018, while realized income for the year was $503.5 million, up 27% [12][14] - The company's AUM reached $148.9 billion, reflecting a 14% year-over-year growth [15] Business Line Data and Key Metrics Changes - The credit business generated low to mid-teens returns, with significant outperformance in loan and high-yield strategies [10] - Real estate funds achieved gross returns of 16.8% in the U.S. and 12.7% in Europe, while private equity funds posted gross returns exceeding 20% [10] - Total drawdown deployment was approximately $22 billion, up from $17 billion in 2018, indicating growth across all investment groups [11] Market Data and Key Metrics Changes - Ares raised $24 billion in 2019, with existing limited partners contributing over 80% of the gross capital raised [6] - The company is experiencing strong demand from global pension funds, insurance companies, and sovereign wealth funds, indicating a broadening investor base [7] Company Strategy and Development Direction - Ares is focusing on expanding its product suite and entering new markets, including Asia through the acquisition of SSG Capital [8][9] - The company plans to launch several flagship funds in 2020, targeting a fundraising total that could surpass the record $36 billion raised in 2018 [7] - Strategic initiatives include expanding into insurance with Aspida and launching Ares Australia Management [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow in a favorable market environment, with significant momentum heading into 2020 [20] - The firm is well-positioned to capitalize on changing markets, with available capital of nearly $35 billion [21] - Management highlighted the importance of maintaining a disciplined approach to expense management while pursuing growth opportunities [40] Other Important Information - Ares declared a quarterly common dividend of $0.40 per share, a 25% increase from the previous year, reflecting confidence in future earnings growth [5] - The company has seen a significant increase in its shareholder base since converting to a corporation in 2018, with trading volume increasing sixfold [18] Q&A Session Summary Question: Update on the real estate business after David Roth's joining - Management reported strong progress in real estate fundraising and performance, with significant momentum in new funds [24] Question: Potential for additional common equity raises in ARCC - Management indicated that equity base at ARCC could continue to grow if deployment remains strong [28] Question: Insights on FRE margins and compensation growth - Management clarified that the expected increase in FRE margins is aligned with historical growth rates, with a target of 34% for 2020 [30][31] Question: Staging of fundraising and fee-paying AUM - Management explained that PE-oriented strategies will pay on committed assets, while credit funds will pay on invested capital, leading to a balanced growth picture [37] Question: Impact of strategic transactions on earnings and growth profile - Management highlighted that strategic transactions like SSG and Aspida are expected to open new markets and contribute significantly to profit over the next few years [44][46] Question: Market dynamics for direct lending in Asia - Management noted that direct lending in Asia presents unique challenges but also significant opportunities for growth, similar to past experiences in Europe and the U.S. [51][53] Question: Factors driving expected FRE growth and dividend increases - Management indicated that growth in FRE will largely come from capital raised in 2019 and continued deployment in 2020 [56][57] Question: Confidence in deploying capital amid market conditions - Management expressed confidence in deploying capital effectively, regardless of market conditions, with a focus on both primary and secondary markets [61][62]

Financial Performance - GAAP net income attributable to Ares Management Corporation was $38.5 million for the quarter and $148.9 million for the year ended December 31, 2019[1] - After-tax realized income, net of Series A preferred stock dividends, was $180.1 million for the quarter and $436.7 million for the year ended December 31, 2019[2] - Fee related earnings was $88.7 million for the quarter and $323.7 million for the year ended December 31, 2019[2] - Ares declared a quarterly dividend of $0.40 per share of its Class A common stock[3] - Ares declared a quarterly dividend of $0.4375 per share of its Series A preferred stock[4] Assets Under Management (AUM) - Total Assets Under Management reached $148.9 billion, a 14% increase from the prior year[20, 52] - Total Fee Paying AUM was $96.9 billion, an 18.3% increase from the prior year[20, 52] - Available Capital was $34.6 billion, a 9.2% decrease from prior year[20, 62] - AUM Not Yet Earning Fees was $27.1 billion, a 3.7% decrease from prior year[62] Capital Activity - Ares raised $6.6 billion in gross new capital with net inflows of $6.3 billion for Q4 2019[20] - Ares raised $23.8 billion in gross new capital with net inflows of $21.5 billion for FY 2019[20] - Capital deployment was $5.1 billion during Q4 2019, including $4.0 billion related to drawdown funds[20, 70] - Capital deployment was $27.4 billion during FY 2019, including $21.5 billion related to drawdown funds[20, 70]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-36429 ARES MANAGEMENT CORPORATION (Exact name of Registrant as specified in its charter) Delaware 80-0962035 (State or o ...

Ares Management Corp. (NYSE:ARES) Q3 2019 Results Earnings Conference Call October 31, 2019 12:00 PM ET Company Participants Carl Drake - IR Michael Arougheti - CEO Michael McFerran - CFO Conference Call Participants Mike Carrier - Bank of America Merrill Lynch Craig Siegenthaler - Credit Suisse Ken Worthington - JPMorgan Chris Harris - Wells Fargo Robert Lee - KBW Alex Blostein - Goldman Sachs Michael Cyprys - Morgan Stanley Kenneth Lee - RBC Capital Markets Operator Welcome to Ares Management Cor ...