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

Ares Management, L.P. (“the Company,” “Ares,” “we,” and “our”) (NYSE:ARES) today reported its financial results for the quarter ended September 30, 2014. As Ares was not a public company prior to its initial public offering (“IPO”), which closed on May 7, 2014, and the related reorganization, the financial results for the three months ended September 30, 2013 and for the nine months ended September 30, 2013 and 2014 reported herein include the results of our predecessor owners.

“Growth in our fee related earnings and realized net performance fees has enabled us to notably increase our distribution to our unitholders in the third quarter compared to the second quarter,” commented Tony Ressler, Chief Executive Officer of Ares. “We expect our comprehensive and expanding offering, strong performance and global reach will lead to continued growth in our assets under management as investors seek differentiated alternative investment solutions.”

Ares reported growth in both assets under management and fee earning assets under management of 14.0% and 6.4%, year over year, reaching $79.6 billion and $59.9 billion, respectively.

“We had a solid third quarter, raising more than $3.8 billion in gross capital, and we remain well positioned to grow our earnings as we invest our significant amount of dry powder totaling $18.5 billion,” commented Michael Arougheti, President of Ares. “In addition to our organic growth, we hope to continue to expand our platform through strategic acquisitions in complementary areas that are attractive to our investors and accretive to our unitholders.”

Economic net income for the three months ended September 30, 2014 was $72.1 million compared to $116.7 million for the third quarter of 2013. The decline was primarily attributable to lower performance related earnings within the Tradable Credit Group, as third quarter fund performance was impacted by a decrease in fair values for certain funds in September 2014, which drove unrealized investment losses and reversals of unrealized performance fees. Performance related earnings for the three months ended September 30, 2014 decreased by $33.8 million compared to the three months ended September 30, 2013. In addition, fee related earnings for the Tradable Credit Group for the three months ended September 30, 2014 declined $11.2 million compared to the three months ended September 30, 2013 due to the one-time recognition of $13.9 million in previously deferred management fees in the third quarter of 2013. Third quarter economic net income, net of income taxes, was $67.4 million, or $0.32 per unit. Economic net income for the nine months ended September 30, 2014 was $224.5 million, 1.8% lower compared to $228.7 million for the nine months ended September 30, 2013.

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, fee related earnings, performance related earnings 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 Total units outstanding represents the sum of common units and Ares Operating Group Units, which are exchangeable for common units. See Exhibit F for more details.
³ GAAP net income excludes income (loss) attributable to non-controlling and redeemable interests in Consolidated Funds.

Distributable earnings were $65.3 million for the three months ended September 30, 2014 compared to $86.7 million for the three months ended September 30, 2013, primarily driven by: (i) lower fee related earnings within the Tradable Credit Group of $23.5 million, a decrease of $11.2 million in the third quarter of 2014 compared to $34.7 million in the third quarter of 2013 that resulted from a one-time recognition of previously deferred management fees of $13.9 million in the third quarter of 2013; and (ii) a decline in realized investment income within the Tradable Credit Group from $16.3 million in 2013 to $6.9 million in 2014. Distributable earnings were $168.2 million for the nine months ended September 30, 2014 compared to $217.2 million for the nine months ended September 30, 2013.

For the third quarter, distributable earnings after applicable income taxes allocated to common unitholders were $21.1 million, or $0.26 per common unit, an increase of $0.08 per common unit compared to the second quarter of 2014. Ares declared a third quarter distribution of $0.24 per common unit payable on December 4, 2014 to common unitholders of record as of November 24, 2014.

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

	ARES MANAGEMENT, L.P. Key Performance Metrics as of September 30, 2014
	$ in thousands unless otherwise noted			Three months ended September 30,						Nine months ended September 30,
				2014			2013 (6)			2014			2013 (6)
	Management Fees (includes ARCC Part I Fees of			$153,676			$154,619			$436,940			$376,469
	$31,156 and $32,014 for the three months ended
	September 30, 2014 and 2013, respectively and
	$85,140 and $81,511 for the nine months ended
	September 30, 2014 and 2013, respectively)
	Other Fees (Admin. & Deal Income)			6,568			6,246			20,009			15,228
	Compensation & Benefits (1)			(93,408)			(83,852)			(272,504)			(217,214)
	General & Administrative Expenses (2)			(25,613)			(24,938)			(77,220)			(56,809)
	Fee Related Earnings			$41,223			$52,076			$107,225			$117,676
	Net Performance Fees			$9,415			$41,734			$50,766			$70,861
	Net Investment Income			21,417			22,887			66,515			40,181
	Performance Related Earnings			$30,832			$64,621			$117,281			$111,042
	Economic Net Income			$72,055			$116,697			$224,506			$228,718
	Economic Net Income After Income Taxes (3)			$67,368			--			$209,809			--
	Economic Net Income After Income Taxes per Unit (3)			$0.32			--			$0.99			--
	Distributable Earnings			$65,324			$86,685			$168,218			$217,244
	Distributable Earnings After Income Taxes per Common Unit (4)			$0.26			--			$0.66			--
	Other Data
	Accrued Incentives (Gross)			$526,763			$479,162			$526,763			$479,162
	Accrued Incentives (Net)			166,533			202,923			166,533			202,923
	Management Fees as a Percentage of Total Fee Revenue (5)			94.2%			78.7%			89.6%			84.2%

(1)			Includes compensation and benefits attributable to OMG of $27.1 million and $22.8 million for the three months ended September 30, 2014 and 2013, respectively, and $80.7
			million and $61.5 million for the nine months ended September 30, 2014 and 2013, respectively, which is not allocated to an operating segment.
(2)			Includes G&A attributable to OMG of $14.0 million and $11.4 million for the three months ended September 30, 2014 and 2013, respectively, and $40.5 million and $25.5 million
			for the nine months ended September 30, 2014 and 2013, respectively, which is not allocated to an operating segment.
(3)			Represents pro forma results assuming Ares IPO and reorganization had taken place on January 1, 2014. Total units of 212,285,744 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 for the nine months ending September 30, 2014 as if Ares’ IPO occurred on January 1,
			2014. The per unit calculation uses total common units outstanding. See “Exhibit G. Per Unit Calculations For the Three Months Ended September 30, 2014” for more detail.
(5)			Total fee revenue is calculated as management fees plus net performance fees.
(6)			Management fees includes $13.9 million and $15.0 million in one-time deferred fees for the three months and nine months ended September 30, 2013.

Management Fee Revenue. Management fee revenue declined 0.6% to $153.7 million for the three months ended September 30, 2014 compared to the same period in 2013. Excluding the one-time recognition of previously deferred management fees of $13.9 million in the third quarter of 2013, management fee revenue increased 9.2% for the three months ended September 30, 2014 compared to the same period in 2013. This comparative growth in management fees was partially attributable to the expansion of the Real Estate Group equity platform, additional capital raises by ARCC and $3.2 million from new Tradable Credit Group alternative credit funds that were launched subsequent to the third quarter of 2013.

Compensation and Benefits. Compensation and benefits increased by $9.6 million for the three months ended September 30, 2014 compared to the same period in 2013. The increase was attributable to merit-based increases and increased headcount, including additional professionals from the Keltic acquisition.

General and Administrative Expenses. General and administrative expenses increased by $0.7 million to $25.6 million for the three months ended September 30, 2014 compared to the three months ended September 30, 2013, attributable to higher overhead costs related to an increase in headcount.

Fee Related Earnings. FRE decreased $10.9 million, or 20.8%, to $41.2 million for the three months ended September 30, 2014 compared to the same period in 2013. Excluding the one-time recognition of previously deferred management fees of $13.9 million in the third quarter of 2013, FRE increased $3.0 million, or 7.9%, for the three months ended September 30, 2014 compared to the same period in 2013. The growth in FRE was partially attributable to an increase in FRE in the Real Estate Group of $6.6 million and was partially offset by higher compensation and benefits expenses.

Performance Related Earnings. PRE was $30.8 million for the three months ended September 30, 2014 compared to $64.6 million for the same period in 2013. The decrease in PRE was primarily attributable to the decrease in net performance fees of $32.3 million and in net investment income of $1.5 million, due to the impact of a decline in market values for certain alternative credit funds in the Tradable Credit Group. The decline was partially offset by an increase in ARCC Part II Fees within the Direct Lending Group during the three months ended September 30, 2014.

Economic Net Income. ENI was $72.1 million for the three months ended September 30, 2014 compared to $116.7 million for the same period in 2013. The decrease in ENI was driven by declines in net performance fees of $32.3 million, in net investment income of $1.5 million and in FRE of $10.9 million, described above. ENI after provision for taxes was $67.4 million, or $0.32 per unit, for the third quarter of 2014. The blended effective tax rate on total ENI was 5.7% for the three months ended September 30, 2014.

Distributable Earnings. Total distributable earnings decreased by $21.4 million to $65.3 million for the three months ended September 30, 2014 compared to the same period in 2013. This decrease was primarily due to the $10.9 million decrease in FRE described above and a $7.1 million decrease in realized investment income.

Accrued Incentives Fees. Net accrued incentive fees as of September 30, 2014 decreased by $36.4 million to $166.5 million compared to $202.9 million as of September 30, 2013. The decrease in net accrued incentive fees was attributable to higher realization of previously accrued incentive fees in the Tradable Credit Group. The decrease was also due to a reversal of unrealized incentive fees for certain Tradable Credit funds due to a decline in market values during the third quarter of 2014.

	Assets Under Management
			AUM
	($ in millions)		For the three months ended September 30, 2014		For the twelve months ended September 30, 2014
	Beginning of Period AUM		$79,238		$69,822
	Acquisitions		(216)		(179)
	Commitments (1)		3,585		19,142
	Capital Reduction (2)		(1,023)		(6,345)
	Distribution (3)		(1,370)		(5,683)
	Change in Fund Value (4)		(599)		2,859
	End of Period AUM		$79,616		$79,616
	Average AUM		$79,427		$74,719

(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 $79.6 billion as of September 30, 2014, an increase of $378 million, or 0.5%, compared to total AUM of $79.2 billion as of June 30, 2014. The increase in AUM was primarily due to $3.6 billion in net new commitments raised, which primarily consisted of (i) $1.2 billion in debt commitments to the Tradable Credit Group’s leveraged loan funds, (ii) $182 million in equity commitments to the Tradable Credit Group’s high yield funds, (iii) $782 million in equity commitments to the Tradable Credit Group’s Alternative Credit funds, (iv) $186 million in equity commitments to the Direct Lending Group’s funds and (v) $754 million in equity commitments to the Real Estate Group’s funds. The increase in AUM was partially offset by a capital reduction of $1.0 billion primarily in the Tradable Credit Group. Distributions for the three months ended September 30, 2014 totaled $1.4 billion, of which $385 million was attributable to the Tradable Credit Group, $233 million was attributable to the Direct Lending Group, $20 million was attributable to the Private Equity Group and $729 million was attributable to the Real Estate Group. Change in Fund Value for the three months ended September 30, 2014 decreased $599 million, of which $542 million was attributable to the Tradable Credit Group’s European long-only loan funds and $276 million to the Direct Lending Group’s European funds due to foreign currency fluctuations. The decline was partially offset by an increase in fund value of $212 million attributed to ACOF III and ACOF IV within the Private Equity Group.

For the twelve months ended September 30, 2014, AUM increased $9.8 billion to $79.6 billion, an increase of 14.0% compared to total AUM of $69.8 billion as of September 30, 2013. The increase in AUM was primarily due to $19.1 billion of new commitments, which primarily consisted of (i) $8.3 billion to the Tradable Credit Group’s leveraged loan funds ($1.7 billion in equity commitments and $6.6 billion in debt commitments), (ii) $1.3 billion in equity commitments to the Tradable Credit Group’s high yield funds, (iii) $2.6 billion in equity commitments to the Tradable Credit Group’s Alternative Credit funds, (iv) $4.3 billion to the Direct Lending Group’s funds ($1.8 billion in equity commitments and $2.5 billion in debt commitments) and (v) $2.5 billion to the Real Estate Group’s funds ($1.1 billion in equity commitments and $1.3 billion in debt commitments). The increase in AUM was partially offset by capital reductions of $6.3 billion, of which $4.8 billion was attributable to the Tradable Credit Group. Distributions for the twelve months ended September 30, 2014 totaled $5.7 billion, of which $1.9 billion was attributable to the Tradable Credit Group, $832 million was attributable to the Private Equity Group, $946 million was attributable to the Direct Lending Group and $2.1 billion was attributable to the Real Estate Group. Change in Fund Value for the twelve months ended September 30, 2014 increased $2.9 billion, of which $1.0 billion was attributable to the Real Estate Group, $893 million to the Private Equity Group, $888 million to the Direct Lending Group and $40 million to the Tradable Credit Group.

	Fee-Earning Assets Under Management
			FEAUM
	($ in millions)		For the three months ended September 30, 2014		For the twelve months ended September 30, 2014
	Beginning of Period FEAUM		$59,244		$56,327
	Acquisitions		(165)		(165)
	Commitments (1)		2,723		5,691
	Subscriptions / Deployment / Increase in Leverage (2)		1,384		8,746
	Redemptions / Distributions / Decrease in Leverage (3)		(2,684)		(11,859)
	Market Appreciation (Depreciation) (4)		(191)		2,299
	Change in Fee Basis (5)		(391)		(1,119)
	End of Period FEAUM		$59,920		$59,920
	Average FEAUM		$59,582		$58,123

(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 $59.9 billion as of September 30, 2014, an increase of $676 million, or 1.1%, compared to total FEAUM of $59.2 billion as of June 30, 2014. The increase in FEAUM was primarily due to subscriptions / deployment / increase in leverage, which was mainly comprised of $582 million and $788 million in the Tradable Credit Group and the Direct Lending Group, respectively. New commitments of $2.7 billion, primarily comprised of $1.7 billion in the Tradable Credit Group and $786 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 $2.7 billion, primarily driven by $1.5 billion and $595 million in the Tradable Credit Group and Direct Lending Group, respectively.

For the twelve months ended September 30, 2014, FEAUM increased $3.6 billion, or 6.4%, to $59.9 billion compared to total FEAUM of $56.3 billion as of September 30, 2013. The increase in FEAUM was primarily due to: (i) subscriptions / deployment / increase in leverage of $8.7 billion, which was mainly comprised of $4.3 billion in the Tradable Credit Group and $4.0 billion in the Direct Lending Group; and (ii) commitments of $5.7 billion, which was mainly comprised of $2.9 billion in the Tradable Credit Group, $1.5 billion in the Real Estate Group and $1.2 billion in the Direct Lending Group. The increase in FEAUM was partially offset by redemptions / distributions / decrease in leverage of $11.9 billion, of which $7.7 billion was attributable to the Tradable Credit Group, $456 million was attributable to the Private Equity Group, $2.1 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 September 30, 2014				As of June 30, 2014
		Incentive Generating AUM		Incentive Eligible AUM		Incentive Generating AUM		Incentive Eligible AUM
Tradable Credit Group		$3,297		$8,242		$4,594		$7,448
Direct Lending Group(1)		10,388		13,854		9,513		13,668
Private Equity Group		6,020		9,465		4,058		9,296
Real Estate Group		1,816		5,859		1,993		5,829
Total		$21,521		$37,419		$20,158		$36,241

(1)

Includes the applicable IGAUM and IEAUM of ARCC (which totaled $8,758 and $10,235 as of September 30, 2014, respectively, and $8,067, and $7,804 as of June 30, 2014, respectively, as a result of ARCC Part II Fees).

Total Incentive Generating AUM (“IGAUM”) was $21.5 billion as of September 30, 2014, an increase of $1.4 billion, or 6.8%, compared to total IGAUM of $20.2 billion as of June 30, 2014. The increase was primarily driven by the IGAUM within the Private Equity Group, which increased $2.0 billion due to ACOF IV exceeding its hurdle rate in the third quarter of 2014, as well as an increase within the Direct Lending Group driven by the growth of the ARCC portfolio which generated ARCC Part II Fees.

Total Incentive Eligible AUM (“IEAUM”) was $37.4 billion as of September 30, 2014, compared to $36.2 billion as of June 30, 2014. Funds not yet contributing incentive fees as of September 30, 2014 primarily include Ares European Real Estate Fund III, Ares European Real Estate Fund IV, Ares Commercial Real Estate Corporation, Ares Special Situations Fund IV and Ares European Loan Opportunities Fund.

IGAUM represented approximately 57.5% of Incentive Eligible AUM and incentive generating funds represented 53.8% of total incentive eligible funds, as of September 30, 2014.

Available Capital and Assets Under Management Not Yet Earning Fees ($ in millions)
		As of September 30, 2014				As of June 30, 2014
		Available Capital		AUM Not Yet Earning Fees		Available Capital		AUM Not Yet Earning Fees
Tradable Credit Group		$5,731		$1,953		$5,418		$2,061
Direct Lending Group		6,102		6,016		7,098		6,784
Private Equity Group		3,623		679		4,369		727
Real Estate Group		3,050		739		2,083		620
Total		$18,507		$9,386		$18,969		$10,191

Total available capital was $18.5 billion as of September 30, 2014, a decrease of $0.5 billion, or 2.5%, compared to $19.0 billion as of June 30, 2014, as $3.6 billion of new capital raised was offset by $3.7 billion of capital invested and $0.5 billion of market value adjustments, primarily due to negative foreign currency translation. Additionally, $1.8 billion of capital raised during the third quarter was invested during the third quarter and $1.9 billion of capital was deployed, reducing available capital.

Total AUM Not Yet Earnings Fees was $9.4 billion, a decrease of $0.8 billion, or 7.9%, compared to $10.2 billion as of June 30, 2014. The decline was due to a portion of new capital becoming fee-earning ($1.9 billion) and deployment of available capital. AUM Not Yet Earning Fees of $9.4 billion as of September 30, 2014 represents approximately $85.0 million in annual potential management fee revenue.⁽¹⁾

⁽¹⁾ No assurance can be made that such results will be achieved.

Results Excluding Consolidated Funds

Net income of the Company excluding the effect of the Consolidated Funds for the three months ended September 30, 2014 was $41.1 million.

Investment Capacity and Liquidity

As of September 30, 2014, our cash and cash equivalents were $75.1 million, investments at fair value were $603.4 million, and net performance fees receivable were $166.5 million. As of September 30, 2014, the Company had a $1.03 billion revolving credit facility with approximately $880.0 million in available capital.

($ in thousands)		September 30, 2014		December 31, 2013
Cash and cash equivalents		$75,087		$89,802
Investments, at fair value		603,358		504,291
Debt obligations		163,912		153,119
Net performance fees receivable		166,533		185,773

Distribution

On November 12, 2014, the board of directors of our general partner declared a quarterly distribution of $0.24 per common unit to common unitholders of record at the close of business on November 24, 2014, payable on December 4, 2014.

Recent Developments

• On October 8, 2014, our subsidiary, Ares Finance Co. LLC, issued $250.0 million aggregate principal amount of 4.0% Senior Notes due 2024. A portion of the net proceeds from this issuance were used to pay down the outstanding balance of $150.0 million under our credit facility and $13.9 million of certain promissory notes. Pro forma for the offering and application of the proceeds, cash balances would have been $157.7 million as of September 30, 2014.
• On October 30, 2014, a subsidiary of the Company executed a definitive agreement to acquire Energy Investors Funds (“EIF”), an asset manager in the energy infrastructure industry with approximately $4 billion of AUM and FEAUM across EIF’s four commingled funds and related co-investment vehicles. The acquisition is being financed primarily with cash, including a portion of the proceeds from the above-mentioned 4.0% senior notes offering, and with equity interests exchangeable for up to an aggregate of 1.6 million common units in the Company (before factoring any potential contingent consideration which is based solely on future performance). The transaction is expected to close by the end of 2014, subject to regulatory approval, investor consent and other customary closing conditions.

Conference Call and Webcast Information

On Wednesday November 12, 2014, the Company invites all interested persons to attend its webcast/conference call at 12:00 p.m. (Eastern Time) to discuss its third 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 page of 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 4777249 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 November 25, 2014 at 5:00 p.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 10053309. An archived replay will also be available through November 25, 2014 on a webcast link located on the Home page of the Investor Resources section of our website.

About Ares Management, L.P.

Ares is a leading global alternative asset manager with approximately $80 billion of assets under management and approximately 700 employees in more than 15 offices in the United States, Europe and Asia as of September 30, 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

	Exhibit A. Operating Segments as of September 30, 2014 ($ in millions)
			Available Capital			Fair Value of Capital			AUM
	Tradable Credit Group		$5,731			$26,845			$32,576
	Direct Lending Group		6,102			21,877			27,980
	Private Equity Group		3,623			6,328			9,951
	Real Estate Group		3,050			6,059			9,109
	Total		$18,507			$61,109			$79,616

	Exhibit B. Segment Results ($ in thousands)   As of and for the three months ended September 30, 2014:
			Private Equity Group		Direct Lending Group		Tradable Credit Group		Real Estate Group		Total Segments		OMG		Total Stand Alone
	Management fees
	Recurring fees (includes, in the case of the Direct Lending    Group, $31,156 of ARCC Part I Fees)		$22,386		$68,953		$37,038		$25,299		$153,676		$—		$153,676
	Previously deferred fees		—		—		—		—		—		—		—
	Total management fees		22,386		68,953		37,038		25,299		153,676		—		153,676
	Administrative fees and other income		(137)		108		3		1,333		1,307		5,261		6,568
	Compensation and benefits		(8,638)		(34,815)		(10,813)		(12,092)		(66,358)		(27,050)		(93,408)
	General, administrative and other expenses		(1,872)		(3,684)		(2,741)		(3,311)		(11,608)		(14,005)		(25,613)
	Fee related earnings (loss)		11,739		30,562		23,487		11,229		77,017		(35,794)		41,223
	Performance fees—realized		5,075		—		31,599		799		37,473		—		37,473
	Performance fees—unrealized		35,106		14,148		(44,526)		477		5,205		—		5,205
	Performance fee compensation — realized		(4,058)		(10)		(6,973)		—		(11,041)		—		(11,041)
	Performance fee compensation — unrealized		(27,307)		(8,349)		13,476		(42)		(22,222)		—		(22,222)
	Net performance fees		8,816		5,789		(6,424)		1,234		9,415		—		9,415
	Investment income (loss) — realized		1,269		430		6,868		413		8,980		—		8,980
	Investment income (loss) — unrealized		9,081		3,888		(3,225)		460		10,204		—		10,204
	Interest, dividend and other investment income		1,312		175		2,222		89		3,798		—		3,798
	Interest expense		(630)		(221)		(447)		(267)		(1,565)		—		(1,565)
	Net investment income (loss)		11,032		4,272		5,418		695		21,417		—		21,417
	Performance related earnings (loss)		19,848		10,061		(1,006)		1,929		30,832		—		30,832
	Economic net income (loss)		$31,587		$40,623		$22,481		$13,158		$107,849		$(35,794)		$72,055
	Distributable earnings (loss)		$14,145		$30,288		$54,185		$3,773		$102,391		$(37,067)		$65,324
	Total assets		$594,350		$260,060		$531,158		$192,772		$1,578,340		$9,629		$1,587,969

	Exhibit B. Segment Results (continued) ($ in thousands)   As of and for the three months ended September 30, 2013:
			Private Equity Group		Direct Lending Group		Tradable Credit Group		Real Estate Group		Total Segments		OMG		Total Stand Alone
	Management fees
	Recurring fees (includes, in the case of the Direct Lending   Group, $32,014 of ARCC Part I Fees)		$24,089		$65,596		$33,463		$17,578		$140,726		$—		$140,726
	Previously deferred fees		—		—		13,893		—		13,893		—		13,893
	Total management fees		24,089		65,596		47,356		17,578		154,619		—		154,619
	Administrative fees and other income		229		83		25		1,522		1,859		4,388		6,246
	Compensation and benefits		(7,489)		(34,050)		(9,475)		(10,050)		(61,064)		(22,788)		(83,852)
	General, administrative and other expenses		(3,213)		(2,710)		(3,229)		(4,435)		(13,587)		(11,351)		(24,938)
	Fee related earnings (loss)		13,616		28,919		34,677		4,615		81,827		(29,751)		52,076
	Performance fees — realized		17,361		—		22,130		—		39,492		—		39,492
	Performance fees — unrealized		38,752		10,258		14,580		2,784		66,374		—		66,374
	Performance fee compensation — realized		(13,844)		—		(2,194)		—		(16,037)		—		(16,037)
	Performance fee compensation — unrealized		(30,324)		(6,071)		(11,698)		—		(48,093)		—		(48,093)
	Net performance fees		11,945		4,187		22,818		2,784		41,734		—		41,734
	Investment income (loss) — realized		163		(357)		16,341		(27)		16,120		—		16,120
	Investment income (loss) — unrealized		5,880		2,677		(6,438)		1,574		3,693		—		3,693
	Interest, dividend and other investment income		1,930		1,092		2,093		534		5,649		—		5,649
	Interest expense		(867)		(682)		(512)		(514)		(2,575)		—		(2,575)
	Net investment income (loss)		7,106		2,730		11,484		1,567		22,887		—		22,887
	Performance related earnings (loss)		19,051		6,917		34,302		4,351		64,621		—		64,621
	Economic net income (loss)		$32,667		$35,836		$68,979		$8,966		$146,448		$(29,751)		$116,697
	Distributable earnings (loss)		$17,760		$28,735		$71,449		$(1,146)		$116,798		$(30,113)		$86,685
	Total assets		$446,958		$267,780		$697,305		$220,176		$1,632,219		$9,363		$1,641,582

	Exhibit B. Segment Results (continued) ($ in thousands)   As of and for the nine months ended September 30, 2014:
			Private Equity Group		Direct Lending Group		Tradable Credit Group		Real Estate Group		Total Segments		OMG		Total Stand Alone
	Management fees
	Recurring fees (includes, in the case of the Direct Lending   Group, $85,140 of ARCC Part I Fees)		$68,192		$199,963		$106,802		$61,983		$436,940		$—		$436,940
	Previously deferred fees		—		—		—		—		—		—		—
	Total management fees		68,192		199,963		106,802		61,983		436,940		—		436,940
	Administrative fees and other income		33		474		53		4,119		4,679		15,326		20,009
	Compensation and benefits		(24,720)		(99,780)		(32,071)		(35,265)		(191,836)		(80,668)		(272,504)
	General, administrative and other expenses		(6,609)		(7,843)		(10,333)		(11,911)		(36,696)		(40,524)		(77,220)
	Fee related earnings (loss)		36,896		92,814		64,451		18,926		213,087		(105,866)		107,225
	Performance fees — realized		22,775		39		66,094		799		89,707		—		89,707
	Performance fees — unrealized		98,450		20,040		(42,635)		11,152		87,007		—		87,007
	Performance fee compensation — realized		(18,220)		(38)		(28,465)		—		(46,723)		—		(46,723)
	Performance fee compensation — unrealized		(77,044)		(11,874)		10,301		(608)		(79,225)		—		(79,225)
	Net performance fees		25,961		8,167		5,295		11,343		50,766		—		50,766
	Investment income (loss) — realized		5,048		(1,102)		31,453		842		36,241		—		36,241
	Investment income (loss) — unrealized		36,096		5,627		(18,625)		233		23,331		—		23,331
	Interest, dividend and other investment income		4,679		418		6,801		286		12,184		—		12,184
	Interest expense		(2,037)		(857)		(1,377)		(970)		(5,241)		—		(5,241)
	Net investment income (loss)		43,786		4,086		18,252		391		66,515		—		66,515
	Performance related earnings (loss)		69,747		12,253		23,547		11,734		117,281		—		117,281
	Economic net income (loss)		$106,643		$105,067		$87,998		$30,660		$330,372		$(105,866)		$224,506
	Distributable earnings (loss)		$47,780		$89,501		$133,741		$7,615		$278,637		$(110,419)		$168,218
	Total assets		$594,350		$260,060		$531,158		$192,772		$1,578,340		$9,629		$1,587,969

	Exhibit B. Segment Results (continued) ($ in thousands)   As of and for the nine months ended September 30, 2013:
			Private Equity Group		Direct Lending Group		Tradable Credit Group		Real Estate Group		Total Segments		OMG		Total Stand Alone
	Management fees
	Recurring fees (includes, in the case of the Direct Lending   Group, $81,511 of ARCC Part I Fees)		$70,719		$173,297		$94,887		$22,534		$361,437		$—		$361,437
	Previously deferred fees		—		—		15,032		—		15,032		—		15,032
	Total management fees		70,719		173,297		109,919		22,534		376,469		—		376,469
	Administrative fees and other income		502		248		79		1,536		2,365		12,865		15,228
	Compensation and benefits		(21,091)		(90,568)		(26,829)		(17,251)		(155,739)		(61,475)		(217,214)
	General, administrative and other expenses		(8,467)		(6,771)		(9,192)		(6,860)		(31,290)		(25,519)		(56,809)
	Fee related earnings (loss)		41,663		76,206		73,977		(41)		191,805		(74,129)		117,676
	Performance fees — realized		66,127		—		53,816		—		119,943		—		119,943
	Performance fees — unrealized		16,200		10,657		44,365		2,784		74,006		—		74,006
	Performance fee compensation — realized		(52,901)		37		(13,502)		—		(66,366)		—		(66,366)
	Performance fee compensation — unrealized		(12,052)		(6,368)		(38,302)		—		(56,721)		—		(56,721)
	Net performance fees		17,374		4,326		46,377		2,784		70,861		—		70,861
	Investment income (loss)—realized		4,665		1,122		49,331		(107)		55,011		—		55,011
	Investment income (loss)—unrealized		2,046		1,794		(18,346)		(5,520)		(20,026)		—		(20,026)
	Interest, dividend and other investment income		4,570		3,447		2,914		1,631		12,559		—		12,559
	Interest expense		(2,686)		(1,947)		(1,797)		(936)		(7,365)		—		(7,365)
	Net investment income (loss)		8,595		4,416		32,102		(4,932)		40,181		—		40,181
	Performance related earnings (loss)		25,969		8,742		$78,479		(2,148)		111,042		—		111,042
	Economic net income (loss)		$67,632		$84,948		$152,456		$(2,189)		$302,847		$(74,129)		$228,718
	Distributable earnings (loss)		$59,832		$76,781		$162,400		$(6,563)		$292,450		$(75,206)		$217,244
	Total assets		$446,959		$267,780		$697,305		$220,176		$1,632,219		$9,363		$1,641,582

	Exhibit C. Condensed Consolidated Statements of Financial Condition and Statements of Operations (GAAP Financials) ($ in thousands, except share data)
			As of September 30,		As of December 31,
			2014		2013
			(unaudited)		(Predecessor)
	Assets
	Cash and cash equivalents		$75,087		$89,802
	Restricted cash and cash equivalents		18,525		13,344
	Investments, at fair value		155,568		89,438
	Performance fees receivable		180,791		137,682
	Derivative assets, at fair value		7,789		1,164
	Due from affiliates		133,486		108,920
	Intangible assets, net		46,993		68,742
	Goodwill		85,679		58,159
	Other assets		70,784		73,600
	Assets of Consolidated Funds:
	Cash and cash equivalents		1,368,144		1,638,003
	Investments, at fair value		19,417,334		20,823,338
	Loans held for investment, net		77,308		—
	Due from affiliates		11,104		2,010
	Dividends and interest receivable		82,202		133,158
	Receivable for securities sold		265,334		427,871
	Derivative assets, at fair value		5,514		14,625
	Other assets		13,593		25,528
	Total assets		$22,015,235		$23,705,384
	Liabilities
	Debt obligations		$163,912		$153,119
	Accounts payable, accrued expenses and other liabilities		85,289		67,486
	Deferred tax liabilities, net		22,689		21,002
	Performance fee compensation payable		360,230		295,978
	Equity compensation put option liability		20,000		—
	Derivative liabilities, at fair value		858		2,907
	Accrued compensation		118,461		132,917
	Due to affiliates		16,893		32,690
	Liabilities of Consolidated Funds:
	Accounts payable, accrued expenses and other liabilities		76,297		95,839
	Payable for securities purchased		1,158,321		945,115
	Derivative liabilities, at fair value		49,009		75,115
	Due to affiliates		2,514		2,695
	Securities sold short, at fair value		—		1,633
	Deferred tax liabilities, net		23,761		35,904
	CLO loan obligations		12,004,424		11,774,157
	Fund borrowings		829,644		2,070,598
	Mezzanine debt		329,698		323,164
	Total liabilities		15,262,000		16,030,319
	Commitments and contingencies
	Redeemable interest in Consolidated Funds		1,063,221		1,093,770
	Redeemable interest in Ares Operating Group entities		24,985		40,751
	Non-controlling interest in Consolidated Funds:
	Non-controlling interest in Consolidated Funds		4,943,859		5,691,874
	Equity appropriated for Consolidated Funds		(49,527)		155,261
	Non-controlling interest in Consolidated Funds		4,894,332		5,847,135
	Non-controlling interest in Ares Operating Group Entities		476,608		167,731
	Members’ equity and common stock of Predecessor		—		525,678
	Controlling interest in Ares Management, L.P.:
	Partners’ Capital (80,667,664 and 0 units, issued and outstanding at   September 30, 2014 and December 31, 2013, respectively)		295,271		—
	Accumulated other comprehensive gain (loss)		(1,182)		—
	Total controlling interest in Ares Management, L.P		294,089		—
	Total equity		5,665,029		6,540,544
	Total liabilities, redeemable interests, non-controlling interests and equity		$22,015,235		$23,705,384

	Exhibit C. Condensed Consolidated Statements of Financial Condition and Statements of Operations (GAAP Financials) (continued) ($ in thousands, except share data)
			For the Three Months Ended September 30,				For the Nine Months Ended September 30,
			2014		2013		2014		2013
					(Predecessor)				(Predecessor)
	Revenues
	Management fees (includes ARCC Part I Fees of $31,156,  $85,140 and   $32,014, $81,511 for the three and nine months ended September 30, 2014 and 2013, respectively)		$127,464		$108,851		$352,439		$269,057
	Performance fees		41,885		20,544		69,274		48,867
	Other fees		5,812		6,482		18,694		14,792
	Total revenues		175,161		135,877		440,407		332,716
	Expenses
	Compensation and benefits		100,928		93,307		347,591		240,841
	Performance fee compensation		33,263		64,130		125,948		123,087
	General, administrative and other expenses		41,737		56,492		119,972		99,138
	Consolidated Funds expenses		27,409		23,108		53,058		96,831
	Total expenses		203,337		237,037		646,569		559,897
	Other income (expense)
	Interest, dividend and other investment income		652		2,714		7,673		5,463
	Interest expense		(1,565)		(2,575)		(5,241)		(7,365)
	Other income (expense), net		(1,609)		(202)		(4,847)		(55)
	Net realized gain (loss) on investments		1,725		(529)		474		232
	Net change in unrealized appreciation (depreciation) on investments		11,113		1,859		24,962		(996)
	Interest, dividend and other investment income of Consolidated Funds		189,600		331,488		738,283		945,018
	Interest expense of Consolidated Funds		(215,524)		(103,814)		(564,307)		(336,786)
	Net realized gain (loss) on investments of Consolidated Funds		(30,972)		22,125		71,833		88,996
	Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds		(2,129)		261,081		326,611		60,823
	Total other income (expense)		(48,709)		512,147		595,441		755,330
	Income (loss) before taxes		(76,885)		410,987		389,279		528,149
	Income tax expense (benefit)		2,399		4,790		971		35,552
	Net income (loss)		(79,284)		406,197		388,308		492,597
	Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds		(96,675)		292,925		261,597		239,661
	Less: Net income (loss) attributable to redeemable interests in Consolidated Funds		(23,694)		44,657		26,767		106,954
	Less: Net income (loss) attributable to non-controlling interests in Ares Operating Group Entities		26,923		12,895		67,556		28,011
	Less: Net income (loss) attributable to controlling interests in Predecessor		—		55,758		—		117,149
	Less: Net income (loss) attributable to redeemable interests in Ares Operating Group Entities		191		(38)		573		822
	Net income (loss) attributable to Ares Management, L.P.		$13,971		$—		$31,815		$—
	Net income (loss) attributable to Ares Management, L.P. per common unit
	Basic		$0.17				$0.40
	Diluted		$0.17				$0.39
	Weighted-average common units
	Basic		80,667,664				80,171,855
	Diluted		81,363,978				80,818,072

	Exhibit D. Supplemental Financial Information Consolidating Schedules ($ in thousands, except share data)
			As of September 30, 2014
			Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
	Assets
	Cash and cash equivalents		$75,087		$—		$—		$75,087
	Restricted cash and cash equivalents		18,525		—		—		18,525
	Investments, at fair value		603,358		—		(447,790)		155,568
	Performance fees receivable		526,763		—		(345,972)		180,791
	Derivative assets, at fair value		7,789		—		—		7,789
	Due from affiliates		152,894		—		(19,408)		133,486
	Intangible assets, net		46,993		—		—		46,993
	Goodwill		85,679		—		—		85,679
	Other assets		70,881		—		(97)		70,784
	Assets of Consolidated Funds
	Cash and cash equivalents		—		1,368,144		—		1,368,144
	Investments, at fair value		—		19,417,334		—		19,417,334
	Loans held for investment, net		—		77,308		—		77,308
	Due from affiliates		—		12,116		(1,012)		11,104
	Dividends and interest receivable		—		82,202		—		82,202
	Receivable for securities sold		—		265,334		—		265,334
	Derivative assets, at fair value		—		5,514		—		5,514
	Other assets		—		13,593		—		13,593
	Total assets		1,587,969		21,241,545		$(814,279)		22,015,235
	Liabilities
	Debt obligations		$163,912		$—		$—		$163,912
	Accounts payable, accrued expenses and other liabilities		86,783		—		(1,494)		85,289
	Deferred tax liability, net		22,689		—		—		22,689
	Performance fee compensation payable		360,230		—		—		360,230
	Equity compensation put option liability		20,000		—		—		20,000
	Derivative liabilities, at fair value		858		—		—		858
	Accrued compensation		118,461		—		—		118,461
	Due to affiliates		19,358		—		(2,465)		16,893
	Liabilities of Consolidated Funds
	Accounts payable, accrued expenses and other liabilities		—		76,550		(253)		76,297
	Payable for securities purchased		—		1,158,321		—		1,158,321
	Derivative liabilities, at fair value		—		49,009		—		49,009
	Due to affiliates		—		63,625		(61,111)		2,514
	Deferred tax liability, net		—		23,761		—		23,761
	CLO loan obligations		—		12,074,426		(70,002)		12,004,424
	Fund borrowings		—		829,644		—		829,644
	Mezzanine debt		—		329,698		—		329,698
	Total liabilities		792,291		14,605,034		(135,325)		15,262,000
	Commitments and contingencies
	Redeemable interest in Consolidated Funds		—		1,063,221		—		1,063,221
	Redeemable interest in Ares Operating Group entities		24,985		—		—		24,985
	Non-controlling interest in Consolidated Funds:		—		—		—		—
	Non-controlling interest in Consolidated Funds		—		5,622,810		(678,951)		4,943,859
	Equity appropriated for Consolidated Funds		—		(49,527)		—		(49,527)
	Non-controlling interest in Consolidated Funds		—		5,573,283		(678,951)		4,894,332
	Non-controlling interest in Ares Operating Group Entities		476,608		—		—		476,608
	Controlling interest in Ares Management, L.P.:
	Partners’ Capital (80,667,664 units issued and outstanding)		295,271		—		—		295,271
	Accumulated other comprehensive gain		(1,182)		—		—		(1,182)
	Total controlling interest in Ares Management, L.P		294,089		—		—		294,089
	Total equity		770,697		5,573,283		(678,951)		5,665,029
	Total liabilities, redeemable interests, non-controlling interests and equity		$1,587,973		$21,241,538		$(814,276)		$22,015,235

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

	Exhibit D. Supplemental Financial Information Consolidating Schedules (continued) ($ in thousands)
			For the Three Months Ended September 30, 2014
			Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
	Revenues
	Management fees (includes ARCC Part I Fees of $31,156)		$153,676		$—		$(26,212)		$127,464
	Performance fees		41,472		—		413		41,885
	Other fees		6,568		—		(756)		5,812
	Total revenues		201,716		—		(26,555)		175,161
	Expenses
	Compensation and benefits		100,928		—		—		100,928
	Performance fee compensation		33,263		—		—		33,263
	General, administrative and other expense		41,737		—		—		41,737
	Consolidated Fund expenses				53,685		(26,276)		27,409
	Total expenses		175,928		53,685		(26,276)		203,337
	Other income (expense)
	Interest, dividend and other investment income		2,365		—		(1,713)		652
	Interest expense		(1,565)		—		—		(1,565)
	Other income (expense), net		(1,609)		—		—		(1,609)
	Net realized gain (loss) on investments		9,560		—		(7,835)		1,725
	Net change in unrealized appreciation (depreciation) on investments		10,607		—		506		11,113
	Interest, dividend and other investment income of Consolidated Funds		—		191,112		(1,512)		189,600
	Interest expense of Consolidated Funds		—		(216,904)		1,380		(215,524)
	Net realized gain (loss) on investments of Consolidated Funds		—		(30,972)		—		(30,972)
	Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds		—		1,342		(3,471)		(2,129)
	Total other income (expense)		19,358		(55,422)		(12,645)		(48,709)
	Income (loss) before taxes		45,146		(109,107)		(12,924)		(76,885)
	Income tax expense (benefit)		4,061		(1,662)		—		2,399
	Net income (loss)		41,085		(107,445)		(12,924)		(79,284)
	Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds		—		(79,285)		(17,390)		(96,675)
	Less: Net income (loss) attributable to redeemable interests in Consolidated Funds		—		(28,160)		4,466		(23,694)
	Less: Net income (loss) attributable to non-controlling interests in Ares Operating Group Entities		26,923		—		—		26,923
	Less: Net income (loss) attributable to redeemable interests in Ares Operating Group Entities		191		—		—		191
	Net income (loss) attributable to Ares Management, L.P.		$13,971		$—		$—		$13,971

	Exhibit D. Supplemental Financial Information Consolidating Schedules (continued) ($ in thousands)
			For the Three Months Ended September 30, 2013
			Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
	Revenues
	Management fees (includes ARCC Part I Fees of $32,014)		$154,619		$—		$(45,768)		$108,851
	Performance fees		103,081		—		(82,537)		20,544
	Other fees		6,246		—		236		6,482
	Total revenues		263,946		—		(128,069)		135,877
	Expenses
	Compensation and benefits		93,307		—		—		93,307
	Performance fee compensation		64,130		—		—		64,130
	General, administrative and other expense		56,492		—		—		56,492
	Consolidated Fund expenses		—		85,803		(62,695)		23,108
	Total expenses		213,929		85,803		(62,695)		237,037
	Other income (expense)
	Interest, dividend and other investment income		5,847		—		(3,133)		2,714
	Interest expense		(2,575)		—				(2,575)
	Other income (expense), net		(202)		—		—		(202)
	Net realized gain (loss) on investments		16,120		—		(16,649)		(529)
	Net change in unrealized appreciation (depreciation) on investments		6,477		—		(4,618)		1,859
	Interest, dividend and other investment income of Consolidated Funds		—		331,657		(169)		331,488
	Interest expense of Consolidated Funds		—		(103,569)		(245)		(103,814)
	Net realized gain (loss) on investments of Consolidated Funds		—		22,125		—		22,125
	Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds		—		253,888		7,193		261,081
	Total other income (expense)		25,667		504,101		(17,621)		512,147
	Income (loss) before taxes		75,684		418,298		(82,995)		410,987
	Income tax expense (benefit)		7,068		(2,278)		—		4,790
	Net income (loss)		68,616		420,576		(82,995)		406,197
	Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds		—		373,836		(80,911)		292,925
	Less: Net income (loss) attributable to redeemable interests in Consolidated Funds		—		46,741		(2,084)		44,657
	Less: Net income (loss) attributable to non-controlling interests in Ares Operating Group Entities		12,895		—		—		12,895
	Less: Net income (loss) attributable to controlling interests in Predecessor		55,758		—		—		55,758
	Less: Net income (loss) attributable to redeemable interests in Ares Operating Group Entities		(38)		—		—		(38)
	Net income (loss) attributable to Ares Management, L.P.		$—		$—		$—		$—

	Exhibit D. Supplemental Financial Information Consolidating Schedules (continued) ($ in thousands)
			For the Nine Months Ended September 30, 2014
			Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
	Revenues
	Management fees (includes ARCC Part I Fees of $85,140)		$436,940		$—		$(84,501)		$352,439
	Performance fees		165,777		—		(96,503)		69,274
	Other fees		20,009		—		(1,315)		18,694
	Total revenues		622,726		—		(182,319)		440,407
	Expenses
	Compensation and benefits		347,591		—		—		347,591
	Performance fee compensation		125,948		—		—		125,948
	General, administrative and other expense		119,972		—		—		119,972
	Consolidated Fund expenses		—		144,014		(90,956)		53,058
	Total expenses		593,511		144,014		(90,956)		646,569
	Other income (expense)
	Interest, dividend and other investment income		13,771		—		(6,098)		7,673
	Interest expense		(5,241)		—		—		(5,241)
	Other income (expense), net		(4,847)		—		—		(4,847)
	Net realized gain (loss) on investments		37,039		—		(36,565)		474
	Net change in unrealized appreciation (depreciation) on investments		33,469		—		(8,507)		24,962
	Interest, dividend and other investment income of Consolidated Funds		—		740,052		(1,769)		738,283
	Interest expense of Consolidated Funds		—		(568,407)		4,100		(564,307)
	Net realized gain (loss) on investments of Consolidated Funds		—		71,833		—		71,833
	Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds		—		329,012		(2,401)		326,611
	Total other income (expense)		74,191		572,490		(51,240)		595,441
	Income (loss) before taxes		103,406		428,476		(142,603)		389,279
	Income tax expense (benefit)		3,463		(2,492)		—		971
	Net income (loss)		99,943		430,968		(142,603)		388,308
	Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds		—		402,901		(141,304)		261,597
	Less: Net income (loss) attributable to redeemable interests in Consolidated Funds		—		28,066		(1,299)		26,767
	Less: Net income (loss) attributable to non-controlling interests in Ares Operating Group Entities		67,556		—		—		67,556
	Less: Net income (loss) attributable to redeemable interests in Ares Operating Group Entities		573		—		—		573
	Net income (loss) attributable to Ares Management, L.P.		$31,815		$—		$—		$31,815

	Exhibit D. Supplemental Financial Information Consolidating Schedules (continued) ($ in thousands)
			For the Nine Months Ended September 30, 2013
			Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
	Revenues
	Management fees (includes ARCC Part I Fees of $81,511		$376,469		$—		$(107,412)		$269,057
	Performance fees		191,165		—		(142,298)		48,867
	Other fees		15,228		—		(436)		14,792
	Total revenues		582,862		—		(250,146)		332,716
	Expenses
	Compensation and benefits		240,841		—		—		240,841
	Performance fee compensation		123,087		—		—		123,087
	General, administrative and other expense		99,138		—		—		99,138
	Consolidated Fund expenses				242,461		(145,630)		96,831
	Total expenses		463,066		242,461		(145,630)		559,897
	Other income (expense)
	Interest, dividend and other investment income		12,614		—		(7,151)		5,463
	Interest expense		(7,365)		—		—		(7,365)
	Other income (expense), net		(55)		—		—		(55)
	Net realized gain (loss) on investments		55,011		—		(54,779)		232
	Net change in unrealized appreciation (depreciation) on investments		(17,243)		—		16,247		(996)
	Interest, dividend and other investment income of Consolidated Funds		—		945,560		(542)		945,018
	Interest expense of Consolidated Funds		—		(343,736)		6,950		(336,786)
	Net realized gain (loss) on investments of Consolidated Funds		—		88,996		—		88,996
	Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds		—		55,461		5,362		60,823
	Total other income (expense)		42,962		746,281		(33,913)		755,330
	Income (loss) before taxes		162,758		503,820		(138,429)		528,149
	Income tax expense (benefit)		16,776		18,776		—		35,552
	Net income (loss)		145,982		485,044		(138,429)		492,597
	Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds		—		375,900		(136,239)		239,661
	Less: Net income (loss) attributable to redeemable interests in Consolidated Funds		—		109,144		(2,190)		106,954
	Less: Net income (loss) attributable to non-controlling interests in Ares Operating Group Entities		28,011		—		—		28,011
	Less: Net income (loss) attributable to controlling interests in Predecessor		117,149		—		—		117,149
	Less: Net income (loss) attributable to redeemable interests in Ares Operating Group Entities		822		—		—		822
	Net income (loss) attributable to Ares Management, L.P.		$—		$—		$—		$—

	Exhibit E. Reconciliation from Segments to GAAP Financials ($ in thousands)
			For the Three Months Ended September 30, 2014		For the Three Months Ended September 30, 2013		For the Nine Months Ended September 30, 2014		For the Nine Months Ended September 30, 2013
	Economic Net Income and Fee Related Earnings
	Income (loss) before taxes		$(76,885)		$410,987		$389,279		$528,149
	Adjustments
	Amortization of intangibles		6,143		23,515		21,692		28,113
	Depreciation expense		1,844		1,622		5,651		4,569
	Equity compensation expenses		7,521		8,705		75,088		21,377
	Income tax expense		—		120		—		461
	Acquisition related expenses		4,871		6,019		7,584		8,836
	Placement fees and underwriting costs		3,267		1,027		7,825		2,600
	Operating Management Group expenses, net		35,794		29,751		105,866		74,129
	Loss on fixed asset disposal		2,937		—		2,937		—
	Non-cash other expense		324		—		324		—
	Income of non-controlling interests in Consolidated Funds		120,369		(337,582)		(288,364)		(346,615)
	Income tax expense (benefit) of non-controlling interests in Consolidated Funds		1,662		2,278		2,492		(18,776)
	Total consolidation adjustments and reconciling items		184,734		(264,539)		(58,907)		(225,302)
	Economic net income		$107,849		$146,448		$330,372		$302,847
	Total performance fees income—realized		(37,473)		(39,492)		(89,707)		(119,943)
	Total performance fees income—unrealized		(5,205)		(66,374)		(87,007)		(74,006)
	Total performance fee compensation—realized		11,041		16,037		46,723		66,366
	Total performance fee compensation—unrealized		22,222		48,093		79,225		56,721
	Net investment income		(21,417)		(22,887)		(66,515)		(40,181)
	Fee related earnings		$77,017		$81,827		$213,087		$191,805
	Management fees		$153,676		$154,619		$436,940		$376,469
	Administrative fees and other income		1,307		1,859		4,679		2,365
	Compensation and benefits		(66,358)		(61,064)		(191,836)		(155,739)
	General, administrative and other expenses		(11,608)		(13,587)		(36,696)		(31,290)
	Fee related earnings		$77,017		$81,827		$213,087		$191,805

	Distributable Earnings
	Income before taxes		$(76,885)		$410,987		$389,279		$528,149
	Adjustments
	Amortization of intangibles		6,143		23,515		21,692		28,113
	Equity compensation expenses		7,521		8,705		75,088		21,377
	Operating Management distributable loss(1)		37,067		30,113		110,419		75,206
	Non-cash acquisition-related expenses		—		750		—		2,250
	Taxes paid(2)		(625)		—		(1,180)		—
	Non-cash other expense		324		—		324		—
	Income (loss) of non-controlling interests in Consolidated Funds		120,369		(337,582)		(288,364)		(346,615)
	Income tax (expense) benefit of non-controlling interests in Consolidated Funds		1,662		2,278		2,492		(18,776)
	Unrealized performance fees		(5,205)		(66,374)		(87,007)		(74,006)
	Unrealized performance fee compensation		22,222		48,093		79,225		56,721
	Unrealized investment and other loss		(10,204)		(3,693)		(23,331)		20,026
	Distributable Earnings		$102,391		$116,798		278,637		$292,450
	Fee related earnings		$77,017		$81,827		$213,087		$191,805
	Performance fees—realized		37,473		39,492		89,707		119,943
	Performance fee compensation—realized		(11,041)		(16,037)		(46,723)		(66,366)
	Investment and other income realized, net		11,215		19,194		43,184		60,207
	Performance related earnings—realized		37,647		42,647		86,168		113,784
	Less:
	One-time acquisition costs(3)		(4,871)		(5,269)		(5,507)		(6,586)
	Income tax expense(4)		(228)		(120)		(572)		(461)
	Placement fees and underwriting costs		(3,267)		(1,027)		(7,825)		(2,600)
	Non-cash depreciation and amortization(5)		(3,904)		(1,260)		(6,715)		(3,492)
	Distributable earnings		$102,391		$116,798		$278,637		$292,450

(1)			Represents OMG distributable earnings which includes depreciation expense.
(2)			Represents current tax expense of subsidiary operating entities.
(3)			One-time acquisition costs are reduced by the amounts attributable to OMG, equal to $2,077 for the nine months ended September 30, 2014.
(4)			Represents current tax expense of subsidiary operating entities. Taxes attributable to OMG equal to $399 and $608 for the three and nine months ended September 30, 2014, respectively.
(5)			Depreciation and amortization includes loss on disposal of assets, and is reduced by the amounts attributed to OMG equal to $874 and $362 for the three months ended September 30, 2014 and 2013, respectively and $1,872 and $1,077 for the nine month ended September 30, 2014 and 2013, respectively.

	Exhibit F. Units Outstanding As of September 30, 2014
			Units Outstanding		Adjusted Common Units Outstanding
	Ares Management, L.P. Common Units Outstanding		80,667,664		80,667,664
	Ares Operating Group Units exchangeable into Common Units		130,921,766		-
	Dilutive Effect of Unvested Restricted Common Units(1)		696,314		265,435(2)
	Dilutive Effect of Unvested Options		-		-
	Total		212,285,744		80,933,099

(1)

We apply the treasury stock method to determine the dilutive weighted-average common units represented by our restricted units to be settled in common units and options to acquire common units. Under the treasury stock method, compensation expense attributed to future services and not yet recognized is presumed to be used to acquire outstanding common units, thus reducing the weighted-average number of units and the dilutive effect of these awards.

(2)

Represent proportional dilutive impact based upon the percentage of the Ares Operating Group owned by Ares Management, L.P. (38.12%).

	Exhibit G. Per Unit Calculations For the Three Months Ended September 30, 2014 ($ in thousands, except per unit data)
	After Tax Economic Net Income per Unit
	Economic Net Income Before Taxes		$72,055
	Less: Entity Level Foreign, State and Local Taxes		626
	Economic Net Income After Entity Level, Foreign, State and Local Taxes		$71,429
	x Tax Rate		5.69%
	Less: Provision for Income Taxes (1)		4,061
	After Tax Economic Net Income		$67,368
	After Tax Economic Net Income per Unit Outstanding		$0.32
	After Tax Economic Net Income per Common Unit
	Economic Net Income After Entity Level, Foreign, State and Local Taxes		$71,429
	x Common Ownership Percentage		38.12%
	Economic Net Income Attributable to Common Unitholders		$27,229
	x Tax Rate		14.91%
	Less: Provision for Income Taxes (1)		4,061
	After Tax Economic Net Income Attributable to Common Unitholders		$23,168
	After Tax Economic Net Income per Adjusted Common Unit		$0.29
	Distributable Earnings per Unit
	Distributable Earnings		$65,950
	Less: Entity Level Foreign, State and Local Tax		626
	Distributable Earnings After Entity Level Foreign, State and Local Tax		$65,324
	x Common Ownership Percentage		38.12%
	Distributable Earnings Attributable to Common Unitholders		$24,902
	Less: Current Provision for Income Taxes(2)		3,788
	Distributable Earnings After Tax Attributable to Common Unitholders		$21,113
	Distributable Earnings per Common Unit Outstanding		$0.26
	Actual Distribution per Common Unit Outstanding		$0.24

(1)			The provision for income taxes on ENI was calculated by multiplying (1) Ares Management, L.P.’s share of ENI that is subject to corporate level taxes (reduced by the interest expense attributable to an intercompany loan between Ares Management, L.P. and a corporate subsidiary and its share of other deductible items) by (2) the Company’s assumed corporate tax rate.
(2)			The provision for income taxes on DE represents the current provision for income taxes on pre-tax net income or loss (reduced by the interest expense attributable to an intercompany loan between Ares Management, L.P. and a corporate subsidiary), adjusted to reflect Ares Management, L.P.’s current ownership percentage of the Company’s tax paying corporate subsidiaries.

Exhibit H. Glossary of Terms

ARCC Part I Fees		ARCC Part I Fees refers to fees based on ARCC’s net investment income (before ARCC Part I Fees and fees based on ARCC’s net capital gains, which are paid annually (‘‘ARCC Part II Fees’’)), which are paid quarterly.
Ares Operating Group Units		Ares Operating Group Units refer, collectively, to a partnership unit in each of the Ares Operating Group entities, which include Ares Holdings L.P., Ares Domestic Holdings L.P., Ares Offshore Holdings L.P., Ares Investments L.P. and Ares Real Estate Holdings L.P.
Assets Under Management		Assets Under Management (or “AUM”) refers to the assets of our funds. For our funds other than CLOs, our AUM represents the sum of the net asset value of such funds, the drawn and undrawn debt (at the fund-level including amounts subject to restrictions) and uncalled committed capital (including commitments to funds that have yet to commence their investment periods). For our funds that are CLOs, our AUM represents subordinated notes (equity) plus all drawn and undrawn debt tranches.
Consolidated Funds		Consolidated Funds refers collectively to certain Ares-affiliated funds, related co-investment entities and certain CLOs that are required under GAAP to be consolidated in our combined and consolidated financial statements.
Economic Net Income		Economic net income (or “ENI”) represents net income excluding (a) income tax expense, (b) operating results of our Consolidated Funds, (c) depreciation expense, (d) the effects of changes arising from corporate actions, and (e) certain other items that we believe are not indicative of our core performance. Changes arising from corporate actions include equity-based compensation expenses, the amortization of intangible assets, transaction costs associated with acquisitions and capital transactions, placement fees and underwriting costs and expenses incurred in connection with corporate reorganization.
Distributable Earnings		Distributable earnings (or “DE”) is a pre-income tax measure that is used to assess amounts potentially available for distributions to stakeholders. Distributable earnings is calculated as the sum of Fee Related Earnings, realized performance fees, realized performance fee compensation expense, realized net investment and other income, and is reduced for expenses arising from transaction costs associated with acquisitions, placement fees and underwriting costs, expenses incurred in connection with corporate reorganization and depreciation. Distributable earnings differs from income before taxes computed in accordance with GAAP as it is presented before giving effect to unrealized performance fee income, unrealized performance fee compensation, unrealized net investment income, amortization of intangibles, equity compensation expense and is further adjusted by certain items described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Certain Non-GAAP Measures to Consolidated GAAP Financial Measures.”
Fee Earning Assets Under Management		Fee earning AUM (or “FEAUM”) refers to the AUM of our funds on which we directly or indirectly earn management fees. Fee earning AUM is equal to the sum of all the individual fee bases of our funds that contribute directly or indirectly to our management fees.

Fee Related Earnings		Fee related earnings (or “FRE”) is a component of ENI and is used to assess the ability of our business to cover direct base compensation and operating expenses from management fees. FRE differs from income before taxes computed in accordance with GAAP as it adjusts for the items included in the calculation of ENI and excludes performance fees, performance fee compensation, investment income from our Consolidated Funds and certain other items.
Incentive Generating Assets Under Management		Incentive generating AUM (or “IGAUM”) refers to the AUM of our funds that are currently generating, on a realized or unrealized basis, performance fee revenue. It generally represents the NAV of our funds for which we are entitled to receive a performance fee, excluding capital committed by us and our professionals (which generally is not subject to a performance fee).
Incentive Eligible Assets Under Management		Incentive eligible AUM (or “IEAUM”) refers to the AUM of our funds that are eligible to produce performance fee revenue, regardless of whether or not they are currently generating performance fees. It generally represents the NAV plus uncalled equity of our funds for which we are entitled to receive a performance fee, excluding capital committed by us and our professionals (which generally is not subject to a performance fee).
Operations Management Group		In addition to our four segments, we have an Operations Management Group (the “OMG”) that consists of five independent, shared resource groups to support our reportable segments by providing infrastructure and administrative support in the areas of accounting/finance, operations/information technology, business development, legal/compliance and human resources. The OMG’s expenses are not allocated to our four reportable segments but we consider the cost structure of the OMG when evaluating our financial performance. This information constitutes non-GAAP financial information within the meaning of Regulation G, as promulgated by the SEC. Our management uses this information to assess the performance of our reportable segments and our Operations Management Group, and we believe that this information enhances the ability of unitholders to analyze our performance.
Our Funds		Our funds refers to the funds, alternative asset companies and other entities and accounts that are managed or co-managed by Ares. It also includes funds managed by Ivy Hill Asset Management, L.P. (“IHAM”), a wholly owned portfolio company of ARCC, and a registered investment adviser.
Performance Related Earnings		Performance related earnings (or “PRE”) is a measure used to assess our investment performance. PRE differs from income (loss) before taxes computed in accordance with GAAP as it only includes performance fees, performance fee compensation and investment income earned from our Consolidated Funds and non-consolidated Funds.
Permanent Capital		Permanent capital refers to capital of funds that do not have redemption provisions or a requirement to return capital to investors upon exiting the investments made with such capital, except as required by applicable law, which funds currently consist of Ares Capital Corporation (“ARCC”), Ares Commercial Real Estate Corporation (“ACRE”), Ares Dynamic Credit Allocation Fund, Inc. (“ARDC”) and Ares Multi-Strategy Credit Fund, Inc. (“ARMF”); such funds may be required, or elect, to return all or a portion of capital gains and investment income.
Total Fee Revenue		Total fee revenue refers to the sum of segment management fees and net performance fees.