Ares Investor Presentation

March 2018

1
Disclaimer
The information contained in this presentation is summary information that is intended to be considered in the context of Ares Management, L.P. (NYSE: ARES) (“ARES”) SEC filings and other public
announcements that Ares may make, by press release or otherwise, from time to time. Ares undertakes no duty or obligation to publicly update or revise the forward-looking statements or other
information contained in this presentation. These materials contain information about Ares, its affiliated funds and certain of their respective personnel and affiliates, information about their
respective historical performance and general information about the market. You should not view information related to the past performance of Ares and its affiliated funds or information about
the market, as indicative of future results, the achievement of which cannot be assured. Certain Ares Fund securities may be offered through our affiliate, Ares Investor Services LLC (“AIS”), a broker-
dealer registered with the SEC, and a member of FINRA and SIPC.

Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by Ares or as legal, accounting or tax advice. None of Ares, its affiliated funds or
any affiliate of Ares or its affiliated funds makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained
herein shall be relied upon as a promise or representation whether as to the past or future performance. Certain information set forth herein includes estimates, projections and targets and involves
significant elements of subjective judgment and analysis. Further, such information, unless otherwise stated, is before giving effect to management and incentive fees and deductions for taxes. No
representations are made as to the accuracy of such estimates, projections or targets or that all assumptions relating to such estimates, projections or targets have been considered or stated or that
such estimates, projections or targets will be realized.

These materials are not intended as an offer to sell, or the solicitation of an offer to purchase, any security, the offer and/or sale of which can only be made by definitive offering documentation. Any
offer or solicitation with respect to any securities that may be issued by Ares will be made only by means of definitive offering memoranda or prospectus, which will be provided to prospective
investors and will contain material information that is not set forth herein, including risk factors relating to any such investment.

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 Ares’ future
performance or financial condition. These statements are based on certain assumptions about future events or conditions and involve a number of risks and uncertainties. These statements are not
guarantees of future performance, condition or results. 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 SEC. Ares undertakes no duty to update any forward-looking statements made herein.

An investment in Ares will be discrete from an investment in any funds or other investment programs managed by Ares and the results or performance of such other investment programs is not
indicative of the results or performance that will be achieved by Ares or such investment programs. Moreover, neither the realized returns nor the unrealized values attributable to one Ares fund are
directly applicable to an investment in any other Ares fund.

An investment in Ares may be volatile and can suffer from adverse or unexpected market moves or other adverse events. Investors may suffer the loss of their entire investment. The information set
forth herein is as of the date of this presentation unless otherwise indicated and Ares undertakes no duty to update any of the information set forth herein.

Management uses certain non-GAAP financial performance measures to evaluate Ares’ performance and that of its business segments. Management believes that these measures provide investors
with a greater understanding of Ares’ business and that investors should review the same supplemental non-GAAP financial measures that management uses to analyze Ares’ performance. The
measures described herein represent those non-GAAP measures used by management, in each case before giving effect to the consolidation of certain funds that Ares consolidates with its results in
accordance with GAAP. These measures should be considered in addition to, and not in lieu of Ares’ financial statements prepared in accordance with GAAP. Please refer to the Appendix for
definitions and explanations of these non-GAAP measures and reconciliations to the most directly comparable GAAP measures. Amounts and percentages may reflect rounding adjustments and
consequently totals may not appear to sum.

Some funds managed by Ares or its affiliates may be unregistered private investment partnerships, funds or pools that may invest and trade in many different markets, strategies and instruments and
are not subject to the same regulatory requirements as mutual funds, including mutual fund requirements to provide certain periodic and standardized pricing and valuation information to investors.
Fees vary and may potentially be high. In addition, in light of the various investment strategies of such other investment partnerships, funds and/or pools, it is noted that such other investment
programs may have portfolio investments inconsistent with those of the strategy or investment vehicle proposed herein. For the definitions of certain terms used in this presentation, please refer to
the “Glossary” slide in the appendix.

This may contain information from BofA Merrill Lynch, used with permission. BOFA MERRILL LYNCH IS LICENSING THE ICE BOFA MERRILL LYNCH INDICES AND RELATED DATA “AS IS,” MAKES NO
WARRANTIES REGARDING SAME, DOES NOT GUARANTEE THE SUITABILITY, QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE ICE BOFA MERRILL LYNCH INDICES OR ANY DATA
INCLUDED IN, RELATED TO, OR DERIVED THEREFROM, ASSUMES NO LIABILITY IN CONNECTION WITH THEIR USE, AND DOES NOT SPONSOR, ENDORSE, OR RECOMMEND ARES MANAGEMENT, OR ANY
OF ITS PRODUCTS OR SERVICES.
REF AM-00033
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Leading Global Alternative Asset Manager
High Growth Financial Services Company with Three Complementary Market Leading Businesses

As of December 31, 2017

Founded: 1997
• Complementary businesses drive synergies and sourcing,
AUM:1 $106bn
evaluation and execution advantages
Management Fees from Permanent Capital Vehicles: 39%
Blended Management Fee Rate2: 1.10% • Platform driven by self-originated investment opportunities
Employees / Inv. Professionals (Inv. Partners): 1,000+ / ~400 (65)
Employee Ownership: 72% • Differentiated, management fee centric revenue model
Portfolio Companies: 1,450+
Structured & Real Estate Investments: ~680 • Depth, breadth and tenure of senior professionals
Direct Institutional Relationships: ~785
Global Offices: 15+ • Long track record of demonstrated performance
Market Capitalization3: $5.2bn

CREDIT PRIVATE EQUITY REAL ESTATE

Direct Lending Corporate Private Equity Real Estate Private Equity
Structured Credit U.S. Power & Energy Infrastructure Real Estate Debt
Strategies Syndicated Loans Special Situations
High Yield Bonds
$25 $10
$72

$47
$11
Assets Under
Management
$2
($ in billions)

2012 2017 2012 2017 2012 2017

# of Funds 80 139 8 21 5 42
Direct Lending Corporate Private Equity Real Estate Private Equity

Note: Past performance is not indicative of future results.

1. As of December 31, 2017, metrics include funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation and a registered investment adviser.
2. 2017 amount presented is gross of the $30 million fee waiver related to the purchase of ACAS, the net fee rate is 1.06%.
3. Market Capitalization as of 3/2/2018; calculated using $24.60 share price and 212,835,221 common shares outstanding as of February 28, 2018
(assuming exchange of all outstanding Ares Operating Group units for common shares). 3
Ares Investment Thesis
High growth financial services company well-positioned to deliver attractive shareholder returns by
executing on a straightforward business model
Leading Platform
 Global and scaled investing
presence with unique origination
capability
 Three complementary businesses
drive synergies
 Long track record of
demonstrated investment
performance
 Continuity of management and
investment professionals
 Broad, supportive and growing
investor base
Stable and Diversified Model
 Dividend supported by stable and
growing management fee earnings
 Consistent management fee
growth through cycles
 Long-lived, locked-up capital
 High-quality and diverse
revenues
 Scalable model facilitates
operating margin expansion
4
Compelling Growth Story
 Attractive industry
fundamentals
 New product offerings and
expansion of distribution
channels
 Fundraising momentum
 Strategic growth through
opportunistic M&A
 Path to shareholder value
creation through FRE growth and
retention of PRE
Our Cohesive Platform Creates Competitive Advantages
Complementary Businesses and Collaborative Culture Drive Cross-Platform Investment Sourcing, Evaluation and Execution Advantages

• Approximately 400 investment professionals

Integrated & Cohesive
across multiple markets
Investment Origination
• Cross sourcing of investment opportunities

Sourcing
• Local direct origination capacity
Robust • Cross-sourcing among investment groups
Relationship Network • Deep capital markets relationships

Differentiated • Proprietary research in ~60 industries

Market Intelligence • Insights exchanged across our platform

Evaluation
Consistent Cycle-Tested • Rigorous due diligence
Investment Approach • Maintain a disciplined, credit-oriented focus

Comprehensive • Relative value analysis

Multi-Asset Experience • Ability to evaluate the entire capital structure

Execution
Long-Lived and Flexible • Creative solutions
Capital Mandates • Active throughout market environments

Note: As of December 31, 2017.

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Long Track Record of Demonstrated Investment Performance
Consistent and Attractive Performance Across Diverse Strategies has Driven AUM Growth

Credit1 Private Equity1 Real Estate1

AUM: $71.7 billion AUM: $24.5 billion AUM: $10.2 billion

Gross Annualized Returns Since Inception except Europe Gross Gross Asset Level IRRs Since Net Annual Return Gross IRRs Based on Actual and
and U.S. Direct Lending Asset Level Realized Gross IRRs ITD Annualized IRR Inception On Equity for ACRE Projected Cash Flows
Since Inception since IPO
24%

15% 15%
17%

14% 14%

13%

10%

8% 7%

5%

Syndicated High Yield Europe U.S. Direct Structured Special Situations EIF Aggregate ACOF I-IV Aggregate Debt U.S. Equity Europe Equity
Loans Bonds Direct Lending Credit
Lending

Note: As of December 31, 2017. Past performance is not indicative of future results. Please refer to the performance notes at the end of this presentation for additional definitions, information and notes.
1. NET PERFORMANCE RETURNS: Credit: 5% for U.S. Syndicated Loan funds, 7% for U.S. High Yield funds, and 13% for Structured Credit. Private Equity: 17% for ACOF I-IV Aggregate, 9% for EIF Aggregate and 8% for
Special Situations. Real Estate: 10% for U.S. Equity, 7% for U.S. Debt and 8% for Europe Equity

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History of Growth
Growth Every Year in Number of Funds and Investors, AUM and Management Fee Revenues

# of Funds1 and Investors2 AUM3 Management Fee Revenue4

($ in billions) ($ in millions)

# Funds
$745
# Investors 202
$106

$598

150 $82

783

624 $49 $324

84

$25 $170
38
166 182

2008 2011 2014 2017 2008 2011 2014 2017 2008 2011 2014 2017

Note: Past performance is not indicative of future results. There can be no guarantee that Ares can or will sustain such growth.
1. 2014 and beyond does not include CLOs or SMAs, which is how Ares reports its number of funds publicly.
2. Represents direct institutional investors.
3. AUM amounts include funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation and a registered investment adviser.
4. Includes ARCC Part I Fees.
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Diversified & Growing Investor Base
We Believe Our Deep and Expanding Investor Relationships can be Attributed to Our Performance

AUM Mix by Investor(1) Direct AUM Mix by Geography(1)

($ in billions)

$106 billion AUM

Other, $0.4,
0%

Institutional Middle East,

Institutional Direct $5.5, 8%
Intermediaries $71.1
$13.1 ~67%
12%
Asia &
Pension Australia,
$30.3 $9.0, 13%
Public Entities
28%
and Related(1)
$22.3
21% North
Europe, America,
Insurance $13.2, 19% $43.0, 60%
$11.7
11%
Sovereign
Wealth Funds
Other $9.7
$5.9 9%
6%
Endowment
$1.7 Investment Bank/Private
2% Manager Bank
$3.3 $8.6
3% 8%

Note:
1. As of December 31, 2017. Includes funds managed or co-managed by Ares. Also includes funds managed by IHAM.
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Investors Deepening Relationship with Ares
Increasing Growth and Cross-Selling Across Platform with New and Existing Investors

Institutional Direct Investors Additional Investors Investing Across Funds

In addition to institutional direct investors, Ares has Ares has cross marketed its existing investors into new funds…
200,000+ retail investors across public funds1
CAGR 304
31
15%
783
18%

13% 273
76
30%
5
38% 71

2012 2017
25% 2-5 Funds > 5 Funds

14%
Successful Cross-Selling Across Investment Groups
AUM ($ in billions)
…and into multiple strategies across platform
37%
$36.1

211 $9.6

32% $26.5

$9.6

2012 2017 2012 2017

Pension High Net Worth Bank/Private Bank 2 Groups 3 Groups
Insurance Investment Manager Endowment/Foundation
Sovereign Wealth Fund Sub-Advisory / Other Ares

Note: Past performance is not indicative of future results. There can be no guarantee that Ares can or will sustain such growth.
1. As of March 8, 2017 for ARCC, April 12, 2017 for ACRE, October 19, 2017 for ACSF and April 28, 2017 for ARDC. 9
Diversified and Stable Business & Revenue Model
Revenue Model Supports Stability and Growth of Earnings

10
Stable and Diversified Management Fee Driven Business Model
Consistent 80%+ Fee Revenue from Stable, Cross-Platform Management Fees

Total Unconsolidated Fee Revenue Composition1

$909mm

$793mm 18%

Net Performance Fees

$693mm 17%
$669mm 7%
Mgmt. Fees: Real
$619mm 6%
Estate
11% 8%
10%
Mgmt. Fees: Private
22%
16% 13% Equity

22% 19% Mgmt. Fees:

6%
14% Credit
15%

53%
62% 56%
62% 62%

2013 2014 2015 2016 2017

84% in Mgmt. Fees 89% in Mgmt. Fees 94% in Mgmt. Fees 83% in Mgmt. Fees 82% in Mgmt. Fees

Note:
1. Total fee revenue is calculated as management fees plus net performance fees. Percentage of management fees includes the following amounts attributable to ARCC
Part I Fees: 21% in 2013, 20% in 2014, 19% in 2015, 18% in 2016 and 14% in 2017; for 2013, management fees have not been adjusted for the movement of our special
situations strategy from our Credit Group into our Private Equity Group that became effective July 1, 2016. All other periods have been adjusted to conform with the
current presentation.
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Stable Management Fee Revenue Growth Through Cycles
Ares has Experienced Consistent Management Fee Growth Regardless of Market Volatility

(Indexed at 100)1 ($ in millions)

700 $750
’07-’09 Management Fee
CAGR: 28%
600

500
$500

400

300

$250
200

100

0 $0
'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17
Management Fees MSCI World Index High Yield2 VIX3

Note: Past performance is not indicative of future results.

1. Benchmarks initial data point at 100 with changes compared to initial data point.
2. Represents High Yield yield to worst per Yieldbook.
3. Represents CBOE Volatility Index.
12
Stable, Long Duration AUM
AUM and Management Fees Supported by Long-Dated Assets

AUM Mix by Duration1 Management Fee Mix by Duration2

• Management fees supported by long duration AUM, which also

• Initial duration of ~80% of AUM was greater than 7 years at benefit from mark-to-market insulation
inception • Average duration of 5+ years and 81% of management fees with a
• 72% of AUM has a duration of > 3 years duration of > 3 years
o 39% of management fees from permanent capital vehicles

72% > 3 years

1% 81% > 3 years
3%
8%
14% 16%
10%
11% 16% 39%

18%

30% 10%
7%
17%

Permanent Capital 10 or more years 7 to 9 years 3 to 6 years Fewer than 3 years Differentiated Managed Managed Accounts
Accounts 3

Note: Past performance is not indicative of future results.

1. As of December 31, 2017.
2. Q4 ’17 Total Management Fees.
3. Differentiated Managed accounts are funds that have been with the firm for greater than three years, or are in illiquid strategies or co-investments.
13
Significant Remaining Capacity for Investment
Investment capacity leaves room for growth across market cycles

$25.1
$22.4 $23.2
$2.8
$3.6 $3.0
$18.2
$15.3 $9.4
Available Capital $4.0 As of December 31, 2017, our
$13.0 $1.9 $11.9
$9.6 Available Capital was $25.1
$bn $0.3 $4.3
$5.7
$4.9 billion
$13.0
$8.5 $9.9 $9.2 $8.3
$7.1

2012 2013 2014 2015 2016 2017

$18.0
$15.5 $0.9
$14.5
$0.9
$0.9
$9.3 $2.2 As of December 31, 2017,
$10.0 $7.2
AUM Not Yet $9.2 $14.5 billion of our total AUM
$8.1 $0.9
Earning Fees $1.4 $1.5 was Not Yet Earning
$bn $0.9
$1.9 Management Fees
$11.4
$7.2 $7.7 $7.3 $7.7
$5.8

2012 2013 2014 2015 2016 2017

Credit Private Equity Real Estate

Note: As of July 1, 2016, the special situations strategy moved out of our Credit Group and into our Private Equity Group. Historical results have been adjusted to
conform with the current presentation. No assurance can be made that such results will be achieved.

14
Stable Management Fees Well-Positioned to Grow
Clear Path to Increased Management Fees with Upside from Incentive Fees

Components of Shadow AUM Not Earning Fees Components of Incentive Eligible AUM4
Implied
Management Fees1 $44 $132 Net Performance
($ in millions) Fee Receivable $186 $259
% of LTM ($ in millions)
Management Fees1 9% 18%

($ in billions) ($ in billions)
$1.6

50% committed
$21.7 to funds
$25.1 billion of currently above
total Available performance
Capital hurdles
$10.9
= 24% of AUM3
$1.0
$10.8

$22.7
$5.7 $19.9

2013 2017
2013 2017
Shadow AUM for Shadow AUM for Deployment
Incentive Generating AUM Uninvested
Future Deployment for Follow-on Investments2

Note: Past performance is not indicative of future results. There can be no guarantee that Ares can or will sustain such growth.
1. Incremental management fee related to AUM available for future deployment and for deployment on follow-on investments. No assurance can be made that
such results will be achieved. Assumes the AUM not yet paying fees is invested as of the beginning of the year and such fees are paid on an annual basis. Does
not reflect any associated reductions in management fees from certain funds, some of which may be material. Excludes any potential ARCC Part I Fees.
2. Shadow AUM for deployment for follow-on investments represents capital committed to funds that are past their investment periods but for which capital is
available to be called for follow-on investments in existing portfolio companies. There is no assurance such capital will be invested.
3. 2017 total available capital for investment of $13.0 billion (52%) in Credit, $9.4 billion (37%) in Private Equity, and $2.8 billion in Real Estate (11%). Shadow AUM
Not Earning Fees is a component of total Available Capital.
4. Total incentive eligible AUM was $36.1 billion in 2013 and $62.2 billion in 2017 15
including $12.0 billion from ARCC Part I fees in 2017.
Multiple Growth Opportunities in Attractive Industry
Leveraging the Ares Platform to Capitalize on Industry Tailwinds for Further Growth

Growth Accelerators

Industry Trends
Platform Attributes • Rotation from liquid to
illiquid assets
• Global, scaled investment
platform • Banks leaving void for
private capital to fill
• Diverse product offerings
and unique investment • Retailization of alternatives
sourcing capabilities
• Growing pension liability
• Attractive track record of gap and insurance yield
investment performance demand
• Experienced and cohesive • Consolidation of LP
team relationships
Levers to Drive
Organic Growth • Future acquisitions
facilitated by more liquid
stock currency
• Fundraising growth and
increased cross-selling • Opportunistically expand
during market dislocations
• New product offerings and
investment solutions • Strategic acquisitions and
portfolio purchases
• New distribution channels
• Team lift-outs and strategic
• Geographic expansion joint ventures and
partnerships
• Deployment of dry powder
• Realization of returns from
incentive eligible AUM

16
Growing Global Demand for Alternatives
Recognized by Institutional and Retail Investors as an Attractive Complement to Traditional Portfolio Allocations

Retail Investors are Increasing Alternative Allocations,

Increasing Allocation to Alternatives
as Liquid Alternative Products Improve Accessibility3
% Institutional Funds Planning to Global liquid alternative assets
% Asset Allocation to Alternatives1 Increase Allocation in Long-Term2 ($ in trillions)

25%
Real Estate 36% $1.5

20%

Private Equity 39%

15%

9% $0.6
Infrastructure 50%

4%
$0.2
Private Debt 62%

1997 2002 2007 2012 2017E 2004 2012 2018E

1. Thinking Ahead Institute Global Pension Assets Study 2018.

2. Preqin Investor Outlook: Alternative Assets H2 2017. Represents feedback to survey of 540 global institutional investors on Long-Term allocation plans.
3. Strategy& (PwC) Alternative Investments 2015.
17
 Increasing Demand for Private Debt
Investors continue to increase allocations to private debt across most key investor types

Fund Manager Views on How Institutional Investor Appetite for

Rotation from Liquid to Illiquid Assets(2)
Private Debt Has Changed over the Past 12 Months(1)

As banks leave void for private capital to fill

$352 ($ in billions)
5% $290
$269
$246
19%
Increased $191
$170
No Change $134
$108 $97
Decreased

76%
'09 '10 '11 '12 '13 '14 '15 '16 '17 YTD
Bank Level III Assets at FV

Growing Pension Liability Gap Drives Demand for Yield(3)

Family Office
Public Pension Fund
$14
Private Sector Pension Fund US pensions, 2005–17 ($ in trillions)
Foundation Liabilities
Insurance Company $12
Endowment Plan Increased 3.8
Wealth Manager $10
No Change
Asset Manager
Sovereign Wealth Fund Decreased $8 1.8 Assets
Fund of Funds Manager 3.5
Government Agency
$6
Superannuation Scheme
Bank/Investment Bank
$4
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

1. Preqin Special Report: Private Debt Fund Manager Outlook H1 2018. Represents feedback to survey of 94 private debt fund managers.
2. SNL, FFEIC Call Reports. Includes all active national (OCC) and state (FDIC) chartered U.S. commercial banks at each point in time; excludes federal and state savings banks and savings and
loan associations.
3. McKinsey Global Private Markets Review 2018: The rise and rise of private markets. 18
Ares is Significantly Growing AUM in Large Institutional Segments
Ares is Growing its Client AUM Meaningfully Faster than the Underlying Assets in Institutional Segments

Global Institutional Investment Assets by Segment1 Ares Direct AUM for Global Institutional Segments
($ in trillions) ($ in billions)
Ares
2.8bps
CAGR
Penetration Rate: 6.1bps
Market Ares Market
CAGR
$75.1
$45.8
9x
$63.2 $9.2
45% 5%
5%
$29.4
1x
$24.1 $9.9 10% 9%

$7.4 9%

$5.2
$17.4
$2.1 11x

3% $26.7 33% 3%
$38.3 $6.7
$33.9

$8.6

2012 2016 2012 2016

Pension Sovereign Wealth Funds Insurance

Ares has experienced a 27% CAGR by increasing penetration in these segments with growth rates of 9-11x faster than the
market in the large pension and insurance segments

Note: Past performance is not indicative of future results. There can be no guarantee that Ares can or will sustain such growth.
1. PWC Report - Asset & Wealth Management Revolution: Embracing Exponential Change. Data excludes High Net Worth (2016 total assets of ~$72 trillion) and Mass
Affluent (2016 total assets of ~$67 trillion) segments.
19
Ares is Significantly Growing AUM Across the Globe
Ares is Growing its AUM 2x-6x Faster Than the Overall Industry in its Key Focus Areas

Global AUM by Region1 Ares Global Direct AUM by Client Geography

($ in trillions) ($ in billions)
Industry Ares CAGR
CAGR Industry Share: 4.5bps 7.4bps Ares Industry
$84.9 $62.6 N/A 6%
6%
$3.3 $0.2
$0.7 2x
4% $4.5
7% 4%
$12.1
12% $8.2
$63.9 1x
16% 12%
$2.6
$0.6
$7.7 $21.9 3% $12.7 6x
17% 3%

$19.7 $29.0
$3.4
$4.5
$46.9 $6.9 $36.9 3x
9%
27% 9%
$33.2

$14.2

2012 2016 2012 2016

North Middle East Latin

Europe Asia Pacific
America / Africa America

With a historical focus on North American, European and Middle East markets, Ares has grown 2-6x faster than the industry
Ares is increasingly focusing on the large Asia Pacific region and growth is outpacing the industry

Note: Past performance is not indicative of future results. There can be no guarantee that Ares can or will sustain such growth.
1. PWC Report - Asset & Wealth Management Revolution: Embracing Exponential Change. Data includes High Net Worth (2016 total assets of ~$72 trillion) and Mass
Affluent (2016 total assets of ~$67 trillion) segments.
20
Strong Growth in Fund Families
Performance has Driven Strong Investor Demand for Larger Subsequent Funds and New Strategies

Private Equity: Ares Corporate Opportunities Funds Credit: Ares Capital Europe Funds
($ in millions) ($ in millions)

$7,850 $4,840

$3,510
$1,750

$751 $481

1
Fund: ACOF I ACOF III ACOF V Fund: ACE I ACE II ACE III
Vintage: Aug '02 Feb '08 Dec '15 Vintage: Jun '07 Aug '12 Jul '15

Real Estate: Ares US Real Estate Funds Credit: ARCC Fair Value of Investments Credit: Ares Private Credit Solutions Fund
($ in millions) ($ in millions) Permanent Capital Vehicle ($ in millions)
$11,841 Raised $3.4Bn for Inaugural Fund, ~$1Bn in
$824 Excess of Target, with 60% new clients

$3,365

$450

$256

$183 $0

Fund: Fund I Fund III Fund VIII As of: Dec '04 Dec '17 Fund: - PCS
Vintage: 1993 1997 Jul '13 Vintage: - Jan '17

Note: As of December 31, 2017, AUM amounts include funds managed by Ivy Hill Asset Management, L.P. Past performance is not indicative of future results. There can be no
guarantee that Ares can or will sustain such growth. Funds shown represent final fund close amounts.
1. Reflects both debt and equity commitments.
21
Multiple Avenues for Growth
Ares is Making Substantial Investments in Strategies to Offer More Client Solutions and is Expanding Into New Channels
to Reach New Investors

• Larger subsequent funds

• Cross-market our strategies to existing clients
• Growth of business development and investor
relations groups
Organic
1 • Enter adjacent asset classes
• Continue to develop differentiated solutions
New Products
2 • Insurance
• Sub-advisory partners
New Channels • Traded and non-traded retail
3 • Intermediary relationships
• Family offices and high-net-worth

4 New Geographies • Continued expansion in Europe and Asia

• New international markets

5
New Partnerships
• Strategic partnerships
• Joint ventures

Opportunistic
• Strategic acquisitions
• Portfolio purchases

22
Strategic M&A Initiatives
Highly Selective and Disciplined Approach to Inorganic Growth, Executing on Less than 5% of the Opportunities Reviewed

Comprehensive M&A Review Process

• Reviewed 150+ targets representing over $2 trillion of AUM • Team proactively and opportunistically pursues various
over the past 2 years transactions for Ares and its vehicles including:
• Dedicated Corporate Strategy Group focused on ongoing global
o Acquisitions of scale o Tuck-in opportunities
expansion through new product development, strategic
partnerships, investments and acquisitions o Cross platform investment o Opportunistic portfolio
partnerships purchases
• To be considered strategic, an opportunity must be:
o Management team lift-outs o Non-core asset divestitures
1. Complementary to Ares’ existing expertise
o Strategic balance sheet o Joint ventures
2. Accretive and stand on its own investment merit
investments
3. Strong cultural fit
o Tactical capital raises
4. Able to increase growth through Ares Platform

Strong Acquisition History Diversity of Opportunities Reviewed (2016-2017)

(# of opportunities)
Cementing Market Position Enhancing Existing Capabilities Infrastructure
10
Corp. Equities
11

Real Estate
Distribution 45
15

Expansion into Complementary Space Credit

Insurance
32
37

23
Growth in Key Financial Metrics
Well Positioned for Future Opportunities
History of Increased Performance Strong Balance Sheet Enables Growth
($ in millions)
2014 2017
Management Fees1 Balance Sheet Investments
($ in millions) $745 by Strategy
Assets 12/31/17

$598 Cash $119 $81

$91

Investments 823 $375

Fee Related Earnings
($ in millions)
$217 $277
Net Performance
$147 259
Fee Receivable

Credit Real Estate

Private Equity Other

Net Performance Fees
($ in millions)
$164

Debt Capitalization Maturity 12/31/17

$71
Credit Facility ($1,065) 2022 $210

Senior Notes 2024 245

Economic Net Income
($ in millions)
$468 Term Loans 2026-2029 161

$289
Total Debt Obligations $616

Note: Past performance is not indicative of future results. There can be no guarantee that Ares can or will sustain such growth.
1. Management fees include ARCC Part I fees.
2. Excludes performance fee receivable. 24
Path to Shareholder Value Creation
Shareholder Value Driven by Growth in Fee Related Earnings plus Reinvestment of Realized Performance Related Earnings

Fee Related Earnings Realized Performance Related Earnings

14% CAGR since 2014 $463 million Realized Performance Related Earnings since 2014 1

• Diversity and composition of AUM drive stable earnings • Realize accrued net performance fees

• Increased sizes of successor funds drive earnings growth • Realize income from balance sheet investments2

• Readily-deployable shadow AUM • Increase in new performance fees and investment

income from investment appreciation/income2
• Adjacent fund strategies creating new AUM
• Convert incentive eligible AUM into incentive
• Scale efficiencies to drive margin expansion generating AUM through deployment

• Increased fee opportunities from ARCC • New fundraising of incentive eligible AUM

$1.12 per share (annualized) qualified dividend with Retained earnings to invest in organic & inorganic
potential growth pegged to Fee Related Earnings3 growth and other value creation activities

Note: Past performance is not indicative of future results. There can be no guarantee that Ares can or will sustain such growth.
1. For four years ending 12/31/2017.
2. For the one- and three-year periods ending December 31, 2017, Ares balance sheet investments have generated IRRs of approximately 13%.
3. The declaration, payment, and determination of the amount of future dividends, if any, is at the sole discretion of our Board of Directors, which may change our
dividend policy at any time.
25
Appendix

Confidential – Not for Publication or Distribution 26

Ares Credit Group
Integrated scaled global platform combines direct origination, deep fundamental credit research
and broad perspective of relative value

$71.7 billion AUM(1) Advantages

25+ Partners averaging 24 years of experience

Access to Differentiated
Deep Investment Ability to Express
~235 dedicated investment professionals Information to Inform
Opportunity Set Relative Value
Credit Decisions

Origination, Research & Investment Management Leading Platform of Liquid and Direct Lending Strategies

14 portfolio managers Middle

Syndicated Structured Market Cash Private Mezz/
~55 industry research and structured credit professionals Loans Credit / CMBS Opportunistic
Flow Loans
~120 direct origination professionals
11 distressed and restructuring specialists
Asset Based Project
High Yield Lending Finance
Syndication, Trading & Servicing

6 traders in the U.S. and Europe Liquid Credit Illiquid Credit

6 dedicated capital markets professionals
~30 direct lending professionals focused solely on asset management
Accolades(2)

Investor Relations & Business Operations

Established investor relations and client service across the Americas, ARCC Received Most Honored
Designation & Highest
Europe, Asia, Australia and the Middle East Rankings for Best CEO, CFO, IR Top Quartile Lender of the Year Global Sponsored
Professional and Investor Rankings for North America Deal of the Year -
Relations Program Several Funds 2014, 2015 & 2016 2016

We have experienced teams across the platform that are positioned for excellence in investing and client service
Note: As of December 31, 2017, unless otherwise noted.
1. As of December 31, 2017 AUM amounts include funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation and a registered
investment adviser.
2. The performance, awards/ratings noted herein related only to selected funds/strategies and my not be representative of any given client’s experience and should not be viewed as indicative
of Ares’ past performance or its funds’ future performance.
Please see page 37 for additional information on accolades
Confidential – Not for Publication or Distribution 27
 Ares Private Equity Group
We have $24.5 billion(1) of assets under management and have three dedicated investment teams
 We have a demonstrated ability to deploy flexible capital which enables us to stay both active and disciplined across various market environments
 Our three dedicated investment teams are led by senior professionals with decades of investing experience in their respective asset classes
 We are able to leverage our broad network of relationships to generate differentiated deal flow that presents attractive risk-adjusted returns

Advantages

Multi-Asset Class Experience Proprietary

Flexible Capital Mandates Deal Flow

Leading Platform of Private Equity Strategies

Corporate Private Equity U.S. Power & Energy Infrastructure Special Situations

Assets Under
$18.6 billion AUM $4.4 billion AUM $1.5 billion AUM
Management(1)
Majority/Shared Control Investments, Power Generation, Transmission and Stressed, Distressed and Special Situations
Investment Focus
Minority Growth Capital (China) Midstream Investments Investments

Stressed/Distressed Debt, Post-Reorg Equity,

Buyout, Growth Equity , Rescue Capital,
Types of Investments Distressed Buyouts / Discounted Debt
Accumulation, Growth Equity
Acquisition of Cash Flowing Projects and
Rescue Capital, Special Situations
Development of New Power Infrastructure
Opportunistic, CLO Debt and Equity, Other
Asset
Specialty Finance Opportunities

Investment Professionals(2) ~65 ~20 ~10

Los Angeles, Chicago, London, Shanghai, Boston, Los Angeles, New York, San
Offices Los Angeles
Chengdu, Hong Kong Francisco

1. AUM amounts are as of December 31, 2017.

2. As of December 31, 2017.

Confidential – Not for Publication or Distribution 28

Ares Real Estate Group
We have $10.2 billion(1) of assets under management and have invested over $15 billion of equity in
700+ deals since 1993

 Extensive U.S. and European footprint combines a broad view of opportunities with deep local networks, leading to off-market deal flow
 Led by a global senior team of highly tenured and cycle-tested real estate professionals with access to real-time market and corporate trends
 Demonstrated performance in both public and private investment vehicles, delivering attractive risk-adjusted returns across property types
and geographies

Advantages Accolades(2)

Proprietary Access to Real-Time Investment track records of 15+

Cycle-Tested
Relationship Market and years in both U.S. and European real
Results estate private equity
Deal Flow Corporate Trends Top 15 Real Estate Rated Special
Manager Based on Servicing Platform
2012-17 Equity Raised 2015, 2016, 2017

Leading Platform of Real Estate Strategies

REAL ESTATE PRIVATE EQUITY REAL ESTATE DEBT
U.S. Europe U.S.
$4.6 billion $2.7 billion $2.9 billion
Repositioning, Lease-up, Redevelopment, Repositioning, Lease-up, Redevelopment, Senior Debt
Development, Distress Development, Distress Mezzanine Debt
65 investments 43 investments 64 investments
Multifamily, Industrial, Hospitality, Multifamily, Industrial, Hospitality, Office, Retail
Retail, Office, Industrial and Residential
Office and Retail and Healthcare

Please see page 37 for additional information on accolades.

1. AUM amounts are as of December 31, 2017. Ares Real Estate Group’s history described herein includes the history of AREA Property Partners (“AREA”) and its key principals prior to the Ares acquisition of AREA in
July 2013.
2. The performance, awards/ratings noted herein related only to selected funds/strategies and my not be representative of any given client’s experience and should not be viewed as indicative of
Ares’ past performance or its funds’ future performance.

Confidential – Not for Publication or Distribution 29

GAAP Statements of Operations
$ in thousands, except share data Year Ended December 31,
2017 2016 2015 2014
Revenues
Management fees (includes ARCC Part I Fees of $105,467, $121,181, $121,491 and $118,537
for the twelve months ended December 31, 2017, 2016, 2015 and 2014, respectively) $722,419 $642,068 $634,399 $486,477
Performance fees 636,674 517,852 150,615 91,412
Administrative and other fees 56,406 39,285 29,428 26,000
Total revenues 1,415,499 1,199,205 814,442 603,889
Expenses
Compensation and benefits 514,109 447,725 $414,454 $456,372
Performance fee compensation 479,722 387,846 111,683 170,028
General, administrative and other expenses 196,730 159,776 224,798 166,839
Transaction support expense 275,177 — — —
Consolidated Funds' expenses 39,020 21,073 18,105 66,800
Total expenses 1,504,758 1,016,420 769,040 860,039
Other income (expense)
Net realized and unrealized gain on investments 67,034 28,251 17,009 32,128
Interest and dividend income 12,715 23,781 14,045 7,244
Interest expense (21,219) (17,981) (18,949) (8,617)
Debt extinguishment expense — — (11,641) —
Other income, net 19,470 35,650 21,680 (2,422)
Net realized and unrealized gain (loss) on investments of Consolidated Funds 100,124 (2,057) (24,616) 513,270
Interest and other income of Consolidated Funds 187,721 138,943 117,373 937,835
Interest expense of Consolidated Funds (126,727) (91,452) (78,819) (666,373)
Total other income 239,118 115,135 36,082 813,065
Income before taxes 149,859 297,920 81,484 556,915
Income tax expense (benefit) (23,052) 11,019 19,064 11,253
Net income 172,911 286,901 62,420 545,662
Less: Net income attributable to non-controlling interests in Consolidated Funds 60,818 3,386 (5,686) 417,793
Less: Net income (loss) attributable to redeemable interests in Consolidated Funds — — — 2,565
Less: Net income attributable to redeemable interests in Ares Operating Group entities — 456 338 731
Less: Net income attributable to non-controlling interests in Ares Operating Group entities 35,915 171,251 48,390 89,585
Net income attributable to Ares Management, L.P. 76,178 111,808 19,378 $34,988
Preferred equity distributions paid 21,700 12,176 — —
Net income attributable to Ares Management, L.P. common unitholders $54,478 $99,632 $19,378 $34,988
Net income attributable to Ares Management, L.P. per common unit
Basic $0.62 $1.22 $0.23 $0.43
Diluted $0.62 $1.20 $0.23 $0.43
Weighted-average common units
Basic 81,838,007 80,749,671 80,673,360 80,358,036
Diluted 81,838,007 82,937,030 80,673,360 80,358,036
Distribution declared and paid per common unit $1.13 $0.83 $0.88 $0.42

30
RI, ENI and Other Measures Financial Summary
$ in thousands, except share data (unless otherwise noted) Year Ended December 31,
2017 2016 2015 2014
Management fees(1) $744,825 $659,451 $650,918 $598,046
Other fees 22,431 12,351 4,599 6,300
Compensation and benefits expenses(2) (413,735) (384,715) (360,622) (354,362)
General, administrative and other expenses(3) (136,531) (114,737) (117,903) (102,720)
Fee Related Earnings $216,990 $172,350 $176,992 $147,264
Realized net performance fees $75,457 $94,734 $56,757 $65,895
Realized net investment income 32,993 33,244 24,836 59,660
Realized Income $325,440 $300,328 $258,585 $272,819
Unrealized net performance fees $88,523 $38,890 ($14,845) 5,454
Unrealized net investment income 53,744 17,765 (27,362) 10,933
Economic Net Income $467,707 $356,983 $216,378 $289,206
(-) Unrealized net performance fees $88,523 $38,890 ($14,845) 5,454
(-) Unrealized net investment income (loss) 53,744 17,765 (27,362) 10,933
(-) Non-core/non-recurring other cash uses(4) 53,805 36,022 27,996 40,063
Distributable Earnings $271,635 $264,306 $230,589 $232,756
(-) Preferred unit distribution $21,700 $12,176 $0 $0
Distributable Earnings, net of preferred unit distribution $249,935 $252,130 $230,589 $232,756

After-tax Distributable Earnings per common unit, net of preferred unit distribution(5) $1.18 $1.00 $0.91 $0.92
After-tax Realized Income, net of preferred unit distribution $273,624 $248,686 $224,417 $242,849
After-tax Realized Income per common unit, net of preferred unit distribution $1.08 $0.98 $0.83 $0.93
After-tax Economic Net Income, net of preferred unit distribution $415,742 $303,560 $185,235 $266,537
After-tax Economic Net Income per unit, net of preferred unit distribution(6) $1.93 $1.42 $0.87 $1.26

Net performance fees $163,980 $133,624 $41,912 71,349

Net investment income 86,737 51,009 (2,526) 70,593
Performance Related Earnings $250,717 $184,633 $39,386 $141,942

Total fee revenue(7) $908,805 $793,075 $692,830 $669,395

Effective management fee rate(8) 1.05% 1.09% 1.15% 1.19%

1. Includes ARCC Part I Fees of $105.5 million, $121.2 million, $121.5 million and $118.5 million for the year ended December 31, 2017, 2016, 2015 and 2014, respectively.
2. Includes compensation and benefits expenses attributable to OMG of $113.6 million, $99.4 million, $86.9 million and $90.3 million for the year ended December 31, 2017, 2016, 2015 and 2014, respectively.
3. Includes G&A expenses attributable to OMG of $75.1 million, $60.9 million, $56.2 million and $52.8 million for the year ended December 31, 2017, 2016, 2015 and 2014, respectively, which are not allocated to an operating segment.
4. Non-core/non-recurring other items includes one-time acquisition costs, non-cash depreciation and amortization and placement fees and underwriting costs associated with selected strategies.
5. After income tax Distributable Earnings attributable to common unitholders per unit calculation uses total common units outstanding, assuming no exchange of Ares Operating Group Units.
6. Units of 216,682,844 for the year ended December 31, 2017 includes the sum of common units, Ares Operating Group Units that are exchangeable for common units on a one-for-one basis and the dilutive effects of the Company’s equity-
based awards.
7. Total fee revenue is calculated as management fees plus net performance fees.
8. Effective management fee rate represents the quotient of management fees and the aggregate fee bases for the periods presented. The effective rate shown excludes the effect of one-time
catch-up fees.

31
GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis
$ in thousands Year Ended December 31,
2017 2016 2015 2014
Economic Net Income. Realized Income and Fee Related Earnings:
Income before taxes $149,859 $297,920 $81,484 $556,915
Adjustments:
Amortization of intangibles 17,850 26,638 46,227 27,610
Depreciation expense 12,631 8,215 6,942 7,346
Equity compensation expenses 69,711 39,065 32,244 83,230
Acquisition and merger-related expenses 259,899 (16,902) 34,864 11,043
Placement fees and underwriting costs 19,765 6,424 8,825 14,753
Offering costs 688 — — —
Other non-cash income (1,730) (1,728) 110 3,384
Expense of non-controlling interests in consolidated subsidiaries 1,739 — — —
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations (62,705) (2,649) 5,682 (415,075)
Economic Net Income 467,707 356,983 216,378 289,206
Unconsolidated performance fee income - unrealized (325,915) (228,472) (31,647) (94,883)
Unconsolidated performance fee compensation expense - unrealized 237,392 189,582 46,492 89,429
Unconsolidated net investment income - unrealized (53,744) (17,765) 27,362 (10,933)
Realized Income 325,440 300,328 258,585 272,819
Unconsolidated performance fee income - realized (317,787) (292,998) (121,948) (146,494)
Unconsolidated performance fee compensation expense - realized 242,330 198,264 65,191 80,599
Unconsolidated net investment income - realized (32,993) (33,244) (24,836) (59,660)
Fee Related Earnings 216,990 172,350 176,992 147,264
Unconsolidated performance fee – realized 317,787 292,998 121,948 146,494
Unconsolidated performance fee compensation expense – realized (242,330) (198,264) (65,191) (80,599)
Unconsolidated investment and other income realized, net 32,987 33,244 24,836 59,660
Less:
One-time acquisition costs (4,878) (841) (2,916) (11,043)
Dividend equivalent (14,997) (5,323) (3,337) —
Non-cash items 576 870 (758) (1,525)
Income tax expense (4,857) (16,089) (5,208) (2,333)
Placement fees and underwriting costs (16,324) (6,424) (8,825) (14,753)
Depreciation (12,631) (8,215) (6,952) (10,409)
Offering costs (688) — — —
Distributable Earnings $271,635 $264,306 $230,589 $232,756

Performance Related Earnings

Economic Net Income $467,707 $356,983 $216,378 $289,206
Less: Fee Related Earnings (216,990) (172,350) (176,992) (147,264)
Performance Related Earnings $250,717 $184,633 $39,386 $141,942

Note: This table is a reconciliation of income (loss) before provision for income taxes on a consolidated basis to RI, ENI, FRE, PRE and DE on unconsolidated basis, which shows the results of
the reportable segments on a combined basis together with the Operations Management Group. Management believes that this presentation is more meaningful than a reconciliation to the
reportable segments on a segment basis because such reconciliation would exclude the Operations Management Group. Differences may arise due to rounding.

32
GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont.)

$ in thousands Year Ended December 31,

2017 2016 2015 2014
Performance fee and net investment income reconciliation:
Unconsolidated performance fee income - realized $317,787 $292,998 $121,948 $146,494
Performance fee income - realized earned from Consolidated Funds (8,089) — (1,769) (95,308)
Performance fee - realized reclass(1) (2,721) (7,367) (6,472) (1,856)
Performance fee income - realized $306,977 $285,631 $113,707 $49,330
Unconsolidated performance fee income - unrealized $325,915 $228,472 $31,647 94,883
Performance fee income - unrealized earned from Consolidated Funds 2,997 (1,139) 6,187 (40,070)
Performance fee - unrealized reclass(1) 785 4,888 (926) (12,731)
Performance fee income - unrealized $329,697 $232,221 $36,908 $42,082
Unconsolidated net investment income $86,737 $51,009 ($2,526) 70,593
Net investment income from Consolidated Funds 129,223 42,244 25,702 731,269
Performance fee - reclass(1) 1,936 2,479 7,398 14,587
Change in value of contingent consideration 20,156 17,675 21,064 —
Other non-cash income 1,730 1,728 (110) (3,384)
Merger-related expenses — — (15,446) —
Offering costs (688) — — —
Other income of non-controlling interests in consolidated subsidiaries 24 — — —
GAAP total other income $239,118 $115,135 $36,082 $813,065

Note: These tables are a reconciliation of consolidated performance fee income, realized and unrealized performance fee income and net investment income to unconsolidated basis, which assist in the reconciliation of GAAP Net
Income to fee related earnings and distributable earnings. These reconciliations show the results of the reportable segments on a combined basis together with the Operations Management Group. Management believes that this
presentation is more meaningful than a reconciliation to the reportable segments on a segment basis because such reconciliation would exclude the Operations Management Group. Differences may arise due to rounding.

1. Related to performance fees for AREA Sponsor Holdings LLC. Changes in value of this investment are reflected within other income in the Company’s Consolidated Statements of Operations.

33
Performance Notes to Long Track Record of Demonstrated Investment Performance Slide
Information respecting prior performance whether of a particular fund or investment strategy is not and should not be interpreted as a guaranty of future performance. Moreover, no assurance
can be given that unrealized, targeted or projected valuations or returns will be achieved. Future results are subject to any number of risks and factors, many of which are beyond the control of
Ares. As with any investment, there is always the potential for gains as well as the possibility of losses.
Performance returns are as of December 31, 2017. Gross and net returns are rounded to the nearest whole number. Returns include the reinvestment of income and other earnings. Gross returns
do not reflect the deduction of management fees, performance fees and carried interest, as applicable, or any other expenses that may be incurred in the management of the account. Net returns
for the U.S. Bank Loan Aggregate and U.S. High Yield Composites are reduced by management fees; all other net returns are after giving effect to management fees, performance fees and carried
interest, as applicable, and other expenses. The performance represented on this slide is considered representative of strategies currently available for investment. We believe aggregated
performance returns reflect our overall performance returns in a strategy, but are not necessarily investable funds or products themselves. The performance does not represent all assets managed
by Ares. The return earned by investors may vary materially from those presented. There can be no assurance that unrealized values or projected returns will be achieved.

Credit
• Performance for U.S. Syndicated Loans is represented by the U.S. Bank Loan Aggregate Composite which includes all actual, fully discretionary, fee-paying, portfolios that are benchmarked to
the Credit Suisse Leveraged Loan Index and primarily invested in U.S. Dollar denominated banks loans. Portfolios may have limited allocations to high yield and structured securities. Portfolios
in the U.S. Bank Loan Aggregate Composite have an emphasis on capital appreciation and income. For periods prior to January 1, 2010 the U.S. Bank Loan Aggregate Composite included the
bank loan segments of multi-asset class portfolios. The inception date of the U.S. Bank Loan Aggregate Composite is November 1997. From January 1, 2000 through January 1, 2010, cash was
allocated on a monthly basis to the bank loan segments based on relative assets. For periods prior to January 1, 2000 cash was not allocated to the bank loan segments. As of January 1, 2010
the U.S. Bank Loan Aggregate Composite no longer includes bank loan segments of multi-asset class portfolios. The benchmark for the U.S. Bank Loan Aggregate Composite is the Credit Suisse
Leveraged Loan Index. The index is designed to mirror the investable universe of the U.S. Dollar-denominated leveraged loan market. Investment track record of 15+ years dates prior to
composite inception when Ares managed syndicated loans and high yield assets as part of its CLO strategy.
• Performance for U.S. High Yield is represented by the U.S. High Yield Composite, which includes all actual, fully discretionary, fee-paying, separately managed portfolios that primarily invest in
U.S. high yield fixed income securities and are benchmarked to the ICE BofAML US High Yield Master II Constrained Index. Portfolios in the U.S. High Yield Composite have an emphasis on
capital appreciation and income. The benchmark for the U.S. High Yield Composite is the ICE BofAML US High Yield Master II Constrained Index, which tracks the performance of U.S. Dollar-
denominated below investment grade corporate debt publicly issued in the U.S. domestic market with a maximum issuer exposure of 2%. The inception date of the U.S. High Yield Composite is
May 2007. Investment track record of 15+ years dates prior to composite inception when Ares managed syndicated loans and high yield assets as part of its CLO strategy.
• Gross performance for the Structured Product Core Composite is an annualized gross internal rate of return (“IRR”) that is calculated using the combined capital draw dates from the fee-
paying limited partners in each fund for the composite and a combined fund valuation for the composite as of the period end date. The inception date of the IRRs for the Structured Product
Core Composite is August 11, 2008, which is the date of the first capital calls in the composite. IRRs include the reinvestment of income and other earnings and reflect the deduction of all
trading expenses. IRRs are presented as annualized returns. The gross IRR does not reflect the deduction of management fees, performance fees and carried interest, as applicable, and
operating and administrative expenses. Returns include the reinvestment of income and other earnings and reflect the deduction of all trading expenses. The net IRR reflects the deduction of
management fees, performance fees and carried interest as if the composite was liquidated, and operating and administrative expenses. Actual expenses allocated to fee-paying limited
partners are used in the net IRR calculation.
• Benchmark returns are provided to represent the investment environment existing during the time period shown. The returns for the ICE BofAML US High Yield Master II Constrained Index and
the Credit Suisse Leveraged Loan Index include the reinvestment of income and other earnings, but do not include transaction costs, management fees or other costs. Returns for the HFRI
Fund Weighted Composite Index are calculated using a time-weighted rate of return and are net of all fees.
• Gross performance for the U.S. Bank Loan Aggregate Composite and U.S. High Yield Composite does not reflect the deduction of investment advisory fees or any other expenses that may be
incurred in the management of the account. Returns include the reinvestment of income and other earnings and reflect the deduction of all trading expenses. Net returns for the U.S. Bank
Loan Aggregate Composite and U.S. High Yield Composite are net of model investment advisory fees and are derived by subtracting 1/12th of the highest applicable fee on a monthly basis
from the gross returns. Net returns for the Credit Opportunities Composite are net of actual management fees, performance fees and carried interest, as applicable, and other expenses
allocated to investors. Performance fees and carried interest, as applicable, are accrued monthly.
• Gross performance for the Structured Product Core Composite is an annualized gross internal rate of return (“IRR”) that is calculated using the combined capital draw dates from the fee-
paying limited partners in each fund for the composite and a combined fund valuation for the composite as of the period end date. The inception date of the IRRs for the Structured Product
Core Composite is August 11, 2008, which is the date of the first capital calls in the composite. IRRs include the reinvestment of income and other earnings and reflect the deduction of all
trading expenses. IRRs are presented as annualized returns. The gross IRR does not reflect the deduction of management fees, performance fees and carried interest, as applicable, and
operating and administrative expenses. Returns include the reinvestment of income and other earnings and reflect the deduction of all trading expenses. The net IRR reflects the deduction of
management fees, performance fees and carried interest as if the composite was liquidated, and operating and administrative expenses. Actual expenses allocated to fee-paying limited
partners are used in the net IRR calculation.
• Actual fees of the portfolios in each composite may vary depending on, among other things, the applicable fee schedule and portfolio size. Composites may contain accounts with performance
based fees. Investment management fees are described in Part 2 of the adviser’s Form ADV. All returns are expressed in U.S. Dollars.

34
Performance Notes to Long Track Record of Demonstrated Investment Performance Slide
Credit (continued)
• Performance footnote for Europe Direct Lending Aggregate IRR: As of December 31, 2017. Represents the performance of all realized investments made by the Ares European Direct Lending
Team in its commingled middle market direct lending funds (ACE I, ACE II and ACE III) since inception in July 2007, including all Separately Managed Accounts (“SMAs”) managed within the
European Direct Lending strategy. This includes investments in the ESSLP, a joint venture to which Ares and GE Commercial Bank SAS are parties, which are calculated based on capital
contributed to the joint venture and do not reflect returns to the ESSLP from investments made by the joint venture. Realized gross asset level Internal Rate of Return is to the fund and not to
the fund's investors. IRR is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. Internal Rate of Return is shown on an asset
level and represents the cash flows to and from investments and is gross of management fees, performance fees and carried interest, as applicable, and expenses related to investments as
these fees and expenses are not allocable to specific investments and may differ among funds. The effect of such management and other expenses may reduce, maybe materially, the IRR's
shown herein. IRR includes realized returns and excludes the impact of fund / SMA‐level leverage where applicable. Investments are considered to be exited when the original investment
objective has been achieved through the receipt of cash and/or non‐cash consideration upon the repayment or sale of an investment, or through the determination that no further
consideration was collectible and, thus, a loss may have been realized.
• ACE I fund level returns are not shown for ACE I due to its internally managed structure from 2007-2013.
• ACE II and ACE III are made up of two feeder funds, one denominated in U.S. Dollars and one denominated in Euros. For ACE II, the gross and net IRRs for the Euro denominated feeder fund are
12.5% and 9.5%, respectively. For ACE III, the gross and net IRR for the U.S. dollar denominated feeder fund are 17.5% and 12.8%, respectively. The IRR is an annualized since inception internal
rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. The cash flow dates used in the IRR calculations are based on the actual
dates of the cash flows. The gross IRRs reflect returns to all partners and are calculated before giving effect to management fees, performance fees as applicable, and other expenses. The net
IRRs reflect returns to the fee-paying limited partners and if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner who does not pay
management fees or performance fees. The net IRRs are calculated after giving effect to management fees, performance fees as applicable, and other expenses. We are not showing the U.S.
dollar denominated ACE II feeder fund gross and net IRRs here due to the U.S. GAAP mark-to-market reporting of the foreign currency hedging program in this feeder fund. It will be holding
the foreign currency hedges until maturity, and therefore is expected to ultimately recognize a gain while mitigating the currency risk associated with the initial principle investments.
• Performance footnote for U.S. Direct Lending: As of December 31, 2017, Ares Capital Corporation (“ARCC”) performance statistics are shown as representative of the Ares U.S. Direct Lending
Group’s long term performance track record. Based on original cash invested, net of syndications, of approximately $20.6 billion and total proceeds from such exited investments of
approximately $26.4 billion. Internal rate of return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. Internal rate of
return is gross of management fees, performance fees and carried interest, as applicable, and expenses related to investments as these fees and expenses are not allocable to specific
investments. The effect of such management and other expenses may reduce, maybe materially, the IRR’s shown herein. Investments are considered to be exited when the original investment
objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of ARCC’s debt investment or sale of an investment, or through the determination
that no further consideration was collectible and, thus, a loss may have been realized.

Private Equity
• ACOF I-IV Aggregate, as of December 31, 2017, refers to the gross performance for the Ares Corporate Opportunities Funds Aggregate, comprised of ACOF I, ACOF II, ACOF III and ACOF IV (each
defined below). The ACOF I-IV Aggregate is an annualized gross internal rate of return (“IRR”) that is calculated on the basis of monthly inflows and outflows of cash to and from investments
and Unrealized Values, assuming such inflows and outflows occurred as of month end and all remaining investments were sold at the values shown through the end of March 2017. The
inception date of the IRRs for the ACOF I-IV Aggregate is May 2003 and is the date of the first investment. The net and gross returns reflect reinvestment of certain gains and other proceeds to
the extent permitted under the applicable governing documents. IRRs are presented as annualized returns and do not take into consideration the timing of contributions and distributions to
and from the funds. The “Unrealized Value” includes Ares’ valuations of unrealized investments and accrued and unpaid cash interest as of December 31, 2017. The gross IRR does not reflect
the deduction of management fees, carried interest and operating and administrative expenses, and is calculated using cash flows and investment valuations attributable to all partners. The
net IRR for the same period was 17%. Net IRR reflects the deduction of management fees, carried interest as if the ACOF I-IV Aggregate was liquidated, and operating and administrative
expenses, and is calculated using cash flows and investment valuations attributable to the fee-paying limited partners. Actual expenses allocated to fee-paying limited partners are used in the
net IRR calculation. Performance for Ares Corporate Opportunities Fund V (“ACOF V”) is not included in the ACOF I-IV Aggregate, as ACOF V is early in its investment period and has not yet
reached two years from its first investment. ACOF I refers to Ares Corporate Opportunities Fund, L.P. (vintage 2003). ACOF II refers to Ares Corporate Opportunities Fund II, L.P. (vintage
2006). ACOF III refers to Ares Corporate Opportunities Fund III, L.P. (vintage 2008). ACOF IV refers to Ares Corporate Opportunities Fund IV, L.P. (vintage 2012). Gross IRRs for the period are
20% for ACOF I, 19% for ACOF II, 31% for ACOF III and 24% for ACOF IV. Net IRRs for the period are 14% for ACOF I, 14% for ACOF II, 23% for ACOF III and 16% for ACOF IV.
• Performance for U.S. power and energy infrastructure is represented by the EIF Aggregate, as of December 31, 2017, which includes the Early Funds and the USPF Funds, each as defined
below. The Gross IRR for the EIF Aggregate is 14.1% and is calculated based on aggregate monthly cash flows to/from each investment, including the equity that was funded to the investment,
cash flows attributable to any reinvestment of proceeds, and the unrealized value for all unrealized investments as of December 31, 2017. Gross IRR does not reflect the effect of management
fees, carried interest, fund-level expenses or, in some cases, project-level expenses. The Net IRR for the EIF Aggregate is 9% and is calculated based on aggregate monthly cash flows to/from
each fund’s limited partners, plus each fund’s net asset value as of December 31, 2017. Net IRR reflects the return to limited partners after giving effect to management fees, carried interest
and other fund expenses, including the impact of the use of subscription financing. The Early Funds include Energy Investors Fund L.P., Energy Investors Fund II, L.P., and Project Finance Fund
III, L.P., vintage years 1989, 1992, and 1995, respectively. Certain funds utilize a credit facility during the capital raising and investment period and for general cash management purposes
during the investment period. Net IRRs would be lower had the funds called capital from limited partners instead of utilizing the credit facility. The USPF Funds include United States Power
Fund, L.P. (“USPF”), United States Power Fund II, L.P. and USPF II Institutional Fund, L.P. (together, the “USPF II Funds”), United States Power Fund III, L.P. (“USPF III”) and EIF United States
Power Fund IV, L.P. (“USPF IV”), vintage years 2002, 2005, 2007, and 2010, respectively. As of December 31, 2017, (i) Gross IRRs for the Early Funds, USPF, the USPF II Funds, USPF III and USPF
IV are 18.2%, 29.4%, 6.9%, 7.7% and 10.1%, respectively, and (ii) Net IRRs for the Early Funds, USPF, the USPF II Funds, USPF III and USPF IV are 15.4%, 25.0%, 4%, 5.1% and 6.6%, respectively.
Gross and Net IRRs for the Early Funds are presented on a pro forma basis and exclude twenty investments (representing 22.7% of the total equity invested by the Early Funds) of a type that
Ares EIF no longer focuses on, and has not focused on since 2002 (i.e., investments in companies whose principal assets or operations were outside of the U.S. and Canada, as well as a waste
water treatment facility). If such investments were included, the Gross and Net IRR for the Early Funds would be 16.6% and 10.5%, respectively.

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Performance Notes to Long Track Record of Demonstrated Investment Performance Slide
Private Equity (continued)
• SSF I-IV Aggregate, as of December 31, 2017, refers to the gross performance for the Special Situations Funds Aggregate, comprised of SSF I, SSF I-b, SSF III and SSF IV (each defined below),
which includes all closed-end commingled, fully discretionary, fee-paying portfolios that invest primarily in distressed debt, post-reorganization equities and other special situations
instruments. Portfolios in the SSF I-IV Aggregate may invest in currency forwards to hedge currency risk and credit default swaps or options contracts to hedge industry or issuer risk. The SSF I-
IV Aggregate is an annualized gross internal rate of return (“IRR”) that is calculated using the combined capital draw dates from the fee-paying limited partners in each fund and a combined
fund valuation as of the period end date. The inception date of the IRRs for the SSF I-IV Aggregate is September 2007, which is the date of the first capital calls. IRRs include the reinvestment
of income and other earnings and reflect the deduction of all trading expenses. IRRs are presented as annualized returns. The gross IRR does not reflect the deduction of management fees,
performance fees and carried interest, as applicable, and operating and administrative expenses. The net IRR reflects the deduction of management fees, performance fees and carried
interest, as applicable, as if the SSF I-IV Aggregate was liquidated, and operating and administrative expenses. Actual expenses allocated to fee-paying limited partners are used in the net IRR
calculation. Past performance is not indicative of future results. SSF I refers to Ares Special Situations Fund, L.P. (vintage 2007). SSF I-b refers to Ares Special Situations Fund I-B, L.P. (vintage
2009). SSF III refers to Ares Special Situations Fund III, L.P. (vintage 2010). SSF IV refers to Ares Special Situations Fund IV, L.P. (vintage 2015).

Real Estate
• Performance returns presented herein are as of December 31, 2017 unless otherwise more specifically noted. The U.S. Equity aggregate and Europe Equity aggregate performance returns
reflect real estate investment strategies that are focused on income and appreciation (for value-add) and primarily appreciation (for opportunistic). Performance returns are based on actual
cash activities through December 31, 2017, with all remaining assets and liabilities of each respective fund or investment existing as of December 31, 2017 assumed to be liquidated at the
estimated values indicated in the respective financial statements with proceeds therefrom assumed to be distributed accordingly. Performance returns presented do not include funds where
the initial investment was made less than two years prior to December 31, 2017.
• Performance for Debt is represented by Ares Commercial Real Estate Corporation (“ACRE”) performance statistics. Performance for U.S. Equity is represented by an aggregate of our U.S. real
estate equity strategies, comprised of VEF I, VEF II, VEF III, VEF IV, VEF V, VEF VI, US Fund VII, US Fund VIII, AREIF I, AREIF II, AREIF III, AREIF IV, AREIF V and AREOF. Performance for Europe
Equity is represented by an aggregate of our European real estate equity strategies, comprised of IF, EF II, EF III, EF IV, EPEP I and co-investments by third party investors alongside investments
made by these funds.
• Gross IRR is an internal rate of return generally based on aggregate periodic cash flow activities between a specific fund and its respective investments (or portfolio of investments, as
applicable), including cash flows attributable to any sales, dispositions, reinvestment of proceeds, financing and/or refinancing and operating activities. Gross IRRs do not reflect or include the
impact of applicable management fees, performance fees or carried interest, fund level expenses, working capital, use of subscription financing and other expenses. Net IRR is an internal rate
of return generally based on aggregate periodic cash flow activities and generally reflects and includes the impact of applicable management fees, performance fees or carried interest as if the
funds or investments in existence as of December 31, 2017 were liquidated at estimated fair values and proceeds distributed accordingly, fund level expenses, working capital, use of
subscription financing and other expenses. The General Partner and any of its affiliates that do not bear management fee or carried interest are excluded for purposes of calculating the net
IRR. Certain funds utilize a credit facility during the capital raising and investment period and for general cash management purposes during the investment period. Net IRRs would be lower
had the funds called capital from limited partners instead of utilizing the credit facility.
• As of the period indicated, the U.S. Equity aggregate gross IRR is 15% and the net IRR is 10%. The U.S. Equity aggregate reflects the U.S. real estate equity strategies and includes investments in
and the results of the following funds: (a) U.S. Equity Value-Add Funds: Value Enhancement Fund I, L.P. (“VEF I,” vintage 1993), Value Enhancement Fund II, L.L.C. (“VEF II,” vintage 1995),
Value Enhancement Fund III, L.L.C. (“VEF III,” vintage 1997), Value Enhancement Fund IV, L.P. (“VEF IV,” vintage 1999), Value Enhancement Fund V, L.P. (“VEF V,” vintage 2001), Value
Enhancement Fund VI, L.P. (“VEF VI,” vintage 2005), Ares US Real Estate Fund VII, L.P. and Ares US Real Estate Fund VII 892, L.P. (collectively, "US Fund VII," vintage 2007), and Ares US Real
Estate Fund VIII, L.P. ("US Fund VIII," vintage 2013); and (b) U.S. Equity Opportunistic Funds: Apollo Real Estate Investment Fund I, L.P. (“AREIF I,” vintage 1993), Apollo Real Estate Investment
Fund II, L.P. (“AREIF II,” vintage 1995), Apollo Real Estate Investment Fund III, L.P. (“AREIF III,” vintage 1997), Apollo Real Estate Investment Fund IV, L.P. (“AREIF IV,” vintage 1999), Apollo Real
Estate Investment Fund V, L.P. (“AREIF V,” vintage 2004) and Ares US Real Estate Opportunity Fund, L.P. (“AREOF,” vintage 2008). Please note that AREIF I-IV were global funds, with the ability
to invest both within and outside of the U.S. AREIF I and II had no geographic investment limitations; AREIF III and IV were permitted to invest up to 30% of their aggregate commitments to
deals outside of the U.S. The cash flow activities of AREIF I-IV (including investments made outside of the U.S.) are included in the gross and net IRRs of the U.S. real estate equity strategies.
The gross and net IRRs of the U.S. real estate equity strategies presented herein do not include the investments in or the performance results of (a) funds with strategies other than value add
and opportunistic, (b) single-investor investment accounts, and (c) co-investments made by third party investors alongside the U.S. Equity Value-Add and U.S. Opportunistic funds.
• As of the period indicated, the Europe Equity aggregate gross IRR is 15% and the net IRR is 8%. The Europe Equity aggregate reflects the European real estate equity strategies and includes
investments in and the results of the following funds and co-investments: (a) European Equity Opportunistic Funds: Ares European Real Estate Fund I (EU), L.P. and Ares European Real Estate
Fund I (IF), L.P. (collectively, “IF,” vintage 2001), Ares European Real Estate Fund II, L.P. and Ares European Real Estate Fund II (Euro), L.P. (collectively, “EF II,” vintage 2004), Ares European Real
Estate Fund III, L.P. and Ares European Real Estate Fund III (Euro), L.P. (collectively, “EF III,” vintage 2007) and Ares European Real Estate Fund IV, L.P. and Ares European Real Estate IV (Euro),
L.P. (collectively, “EF IV,” vintage 2013); (b) European Equity Value-Add Funds: AREA European Property Enhancement Program, L.P. (“EPEP I,” vintage 2012); and (c) co-investments made by
third party investors alongside investments made by IF, EF II, EF III, EF IV and EPEP I. For purposes of calculating aggregate gross IRRs and net IRRs for the European real estate equity
strategies, the periodic cash flows for funds and co-investments that were denominated in currencies other than United States Dollars (USD) were converted to USD using a constant exchange
rate based on the respective average spot rate over the life-to-date of such funds and co-investments.
• The performance data for Ares Commercial Real Estate Corporation (“ACRE”) shown herein does not include all debt-related assets and strategies managed by the Ares Real Estate Group. The
return shown for ACRE is the average annualized return on equity for the period since IPO of the company through December 31, 2017 and is calculated as the average of net income divided
by common equity (excluding minority interests) at the end of each fiscal quarter for the applicable period on an annualized basis. The return on equity reflects the implicit costs of un-
invested capital, as well as the leverage utilized by ACRE, management fees, administrative fees reimbursed to manager as well as other expenses and costs incurred by ACRE or shareholders
of the company.

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Performance Notes to Ares Credit Group Slide
• ARCC received the 2018 All- America Executive Team award alongside 43 other companies. Various Ares personnel received first place awards in the following categories: CEO, CFO, IR
Professional and IR program. 248 other institutions also received a first-, second-, or third-place ranking in one or more of those four categories. Institutional Investor based these awards on
the opinions of 1,940 portfolio managers and buy-side analysts, and 826 sell-side analysts who participated in this survey.
• Institutional Investor logo from Institutional Investor, November 7, 2017 ©2017 Institutional Investor, LLC. All rights reserved. Used by permission and protected by the Copyright Laws of the
United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.
• Lipper Rankings reported in Lipper Marketplace Best Money Managers, September 30, 2017. Lipper Marketplace is the source of the long-only and multi-strategy credit rankings. Lipper’s Best
Money Managers rankings consider only those funds that meet the following qualification: performance must be calculated “net” of all fees and commissions; must include cash; performance
must be calculated in U.S. dollars; asset base must be at least $10 million in size for “traditional” U.S. asset classes (equity, fixed income, and balanced accounts); and, the classification of the
product must fall into one of the categories which they rank. Lipper defines Short Duration as 1-5 years. Lipper’s Active Duration definition does not specify a time period but rather refers to
an Active rather than Passive strategy. Ares Institutional Loan Fund was ranked 11 out of 58 for the 20 quarters ended September 30, 2017. Composites for Ares U.S. Bank Loan Aggregate and
Ares U.S. High Yield additionally received rankings of 9 of 58 and 3 of 40, respectively, for the 20 quarters ended September 30, 2017.
• Private Equity International selected Ares Management as Mid-Cap Lender of the Year – North America for 2014 and Ares Capital Corporation as Lender of the Year – North America for 2015
and 2016– Awards based on an industry wide global survey across 60 categories conducted by Private Equity International. In the Mid-Cap Lender of the Year in North America category
(renamed to Lender of the Year in 2015), Ares was listed as one of three shortlisted firms as suggested by the editorial board of PEI Media. Survey participants voted independently. In addition,
survey participants could nominate another firm not listed in the category.
• Private Debt Investor selected Ares Capital Corporation as Global Sponsored Deal of the Year (Qlik Technologies) for 2016. Awards based on an industry wide global survey across 43 categories
conducted by Private Debt Investor. In the Global Sponsored Deal of the Year category Ares was listed as one of four shortlisted firms as suggested by the editorial board of PEI Media. Survey
participants voted independently. In addition, survey participants could nominate another firm not listed in the category.

Performance Notes to Ares Real Estate Group Slide

• The commercial special servicer rating from S&P previously held by Ares Commercial Real Estate Servicer, LLC, a subsidiary of Ares Commercial Real Estate Management, LLC, the external
manager for ACRE, was voluntarily withdrawn by Ares in July 2017.
• PERE 50: Ranking applies to the Ares Real Estate Group related to selected funds managed therein, some of which were previously managed by AREA Property Partners (“AREA”) prior to
Ares Management LLC’s acquisition of AREA in July 2013. The PERE 50 measures equity raised between January 1, 2012 and the end of March 2017 for direct real estate investment through
closed-ended, commingled real estate funds and co-investment vehicles that invest alongside those funds. The vehicles must give the general partner discretion over capital and investment
decisions and excludes club funds, separate accounts and joint ventures where the general partner does not have discretion over capital and investments. Also excluded are funds with
strategies other than real estate value-added and opportunistic (such as core and core-plus), funds not directly investing in real estate (such as fund of funds and debt funds) and funds
where the primary strategy is not real estate focused (such as general private equity funds).
• 2017 Global PERE Awards: Ares was selected to be on a short list of nominees, identified by the publication’s editorial team, for the award referenced above and was selected as the winner
of the award through a voting process by readers of PERE (Private Equity Real Estate). The selection of Ares to receive the award was based in part on subjective criteria and a limited
universe of candidates. Ranking applies to the Ares European Real Estate Group Funds. The 2017 Global PERE Awards measures the deal volume, including the acquisitions and disposals
across property types in the country between January 1, 2017 and the end of December 2017 for direct real estate investment through closed-ended, commingled real estate funds and co-
investment vehicles that invest alongside these funds. Ares did not pay a participation fee in order to be considered for the 2017 Global PERE Awards ranking, however, Ares has paid a
licensing fee for the ability to distribute the PERE award write-up. The performance, awards/ratings noted herein relate only to selected funds/strategies and may not be representative of
any given client’s experience and should not be viewed as indicative of Ares’ past performance or its funds’ future performance.

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