1

Ares Investor Presentation March 2018

2

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

Disclaimer

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CREDIT

$47

$72

2012 2017

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).

High Growth Financial Services Company with Three Complementary Market Leading Businesses

REAL ESTATE

$2

$10

2012 2017

PRIVATE EQUITY

$11

$25

2012 2017

Direct Lending Structured Credit Syndicated Loans High Yield Bonds

Corporate Private Equity U.S. Power & Energy Infrastructure

Special Situations

Real Estate Private Equity Real Estate Debt

Strategies

Assets Under Management ($ in billions)

# of Funds 80 139 8 21 5 42

Leading Global Alternative Asset Manager

As of December 31, 2017

Founded: 1997

AUM:1 $106bn

Management Fees from Permanent Capital Vehicles: 39%

Blended Management Fee Rate2: 1.10%

Employees / Inv. Professionals (Inv. Partners): 1,000+ / ~400 (65)

Employee Ownership: 72%

Portfolio Companies: 1,450+

Structured & Real Estate Investments: ~680

Direct Institutional Relationships: ~785

Global Offices: 15+

Market Capitalization3: $5.2bn

• Complementary businesses drive synergies and sourcing, evaluation and execution advantages

• Platform driven by self-originated investment opportunities

• Differentiated, management fee centric revenue model

• Depth, breadth and tenure of senior professionals

• Long track record of demonstrated performance

Direct Lending Corporate Private Equity Real Estate Private Equity

4

Strategic growth through opportunistic M&A

Leading Platform

Long track record of demonstrated investment performance

Broad, supportive and growing investor base

Continuity of management and investment professionals

Global and scaled investing presence with unique origination capability

Three complementary businesses drive synergies

Compelling Growth Story

Attractive industry fundamentals

Fundraising momentum

New product offerings and expansion of distribution channels

Path to shareholder value creation through FRE growth and retention of PRE

Stable and Diversified Model

Dividend supported by stable and growing management fee earnings

Long-lived, locked-up capital

Consistent management fee growth through cycles

Scalable model facilitates operating margin expansion

High-quality and diverse revenues

Ares Investment Thesis High growth financial services company well-positioned to deliver attractive shareholder returns by executing on a straightforward business model

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Our Cohesive Platform Creates Competitive Advantages

Complementary Businesses and Collaborative Culture Drive Cross-Platform Investment Sourcing, Evaluation and Execution Advantages

Integrated & Cohesive Investment Origination

Robust Relationship Network

Differentiated Market Intelligence

Consistent Cycle-Tested Investment Approach

Comprehensive Multi-Asset Experience

Long-Lived and Flexible Capital Mandates

Sourcing

Evaluation

Execution

• Approximately 400 investment professionals across multiple markets

• Cross sourcing of investment opportunities

• Local direct origination capacity • Cross-sourcing among investment groups • Deep capital markets relationships

• Proprietary research in ~60 industries • Insights exchanged across our platform

• Rigorous due diligence • Maintain a disciplined, credit-oriented focus

• Creative solutions • Active throughout market environments

• Relative value analysis • Ability to evaluate the entire capital structure

Note: As of December 31, 2017.

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Credit1

AUM: $71.7 billion

Private Equity1

AUM: $24.5 billion

Real Estate1

AUM: $10.2 billion

5%

8%

10%

14%

17%

SyndicatedLoans

High YieldBonds

EuropeDirect

Lending

U.S. DirectLending

StructuredCredit

Gross Annualized Returns Since Inception except Europe and U.S. Direct Lending Asset Level Realized Gross IRRs ITD

13%

14%

24%

Special Situations EIF Aggregate ACOF I-IV Aggregate

Gross Asset Level IRRs Since Inception

Gross Annualized IRR Since Inception

7%

15% 15%

Debt U.S. Equity Europe Equity

Net Annual Return On Equity for ACRE since IPO

Gross IRRs Based on Actual and Projected Cash Flows

Long Track Record of Demonstrated Investment Performance

Consistent and Attractive Performance Across Diverse Strategies has Driven AUM Growth

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

$170

$324

$598

$745

2008 2011 2014 2017

$25

$49

$82

$106

2008 2011 2014 2017

Management Fee Revenue4

($ in millions)

AUM3 # of Funds1 and Investors2

($ in billions)

38

84

150

202

166 182

624

783

2008 2011 2014 2017

# Funds

# Investors

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

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

Note: 1. As of December 31, 2017. Includes funds managed or co-managed by Ares. Also includes funds managed by IHAM.

We Believe Our Deep and Expanding Investor Relationships can be Attributed to Our Performance

Diversified & Growing Investor Base

Pension $30.3 28%

Insurance $11.7 11%

Sovereign Wealth Funds

$9.7 9%

Bank/Private Bank $8.6 8%

Investment Manager

$3.3 3%

Endowment $1.7 2%

Other $5.9 6%

Public Entities and Related(1)

$22.3 21%

Institutional Intermediaries

$13.1 12%

Institutional Direct $71.1 ~67%

($ in billions)

$106 billion AUM

29,991

71,109

2012 2017

Pension High Net Worth Bank/Private Bank

Insurance Investment Manager Endowment/Foundation

Sovereign Wealth Fund Sub-Advisory / Other Ares

27%

25%

41%

2%

70%

29%

CAGR

8%

6%

10%

North America,

$43.0, 60% Europe,

$13.2, 19%

Asia & Australia, $9.0, 13%

Middle East, $5.5, 8%

Other, $0.4, 0%

9

211

783

2012 2017

Pension High Net Worth Bank/Private Bank

Insurance Investment Manager Endowment/Foundation

Sovereign Wealth Fund Sub-Advisory / Other Ares

Institutional Direct Investors Additional Investors Investing Across Funds

30%

38%

25%

14%

37%

32%

CAGR

13%

In addition to institutional direct investors, Ares has 200,000+ retail investors across public funds1

71

273

5

31

76

304

2012 2017

2-5 Funds > 5 Funds

Successful Cross-Selling Across Investment Groups

$9.6

$26.5

$9.6

$36.1

2012 2017

2 Groups 3 Groups

Ares has cross marketed its existing investors into new funds…

AUM ($ in billions)

Investors Deepening Relationship with Ares

Increasing Growth and Cross-Selling Across Platform with New and Existing Investors

18%

15%

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.

…and into multiple strategies across platform

10

Diversified and Stable Business & Revenue Model

Revenue Model Supports Stability and Growth of Earnings

11

2013 2014 2015 2016 2017

$619mm Mgmt. Fees: Real Estate

Mgmt. Fees: Private Equity

Mgmt. Fees: Credit

Net Performance Fees

$693mm $669mm

$793mm

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

$909mm

Stable and Diversified Management Fee Driven Business Model

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.

Total Unconsolidated Fee Revenue Composition1

Consistent 80%+ Fee Revenue from Stable, Cross-Platform Management Fees

62% 62% 62% 56% 53%

15% 14%

22% 19%

22%

6%

13%

10% 8%

7%

16%

11%

6%

17%

18%

12

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

$0

$250

$500

$750

0

100

200

300

400

500

600

700

($ in millions)

Management Fees MSCI World Index High Yield2 VIX3

Stable Management Fee Revenue Growth Through Cycles

Ares has Experienced Consistent Management Fee Growth Regardless of Market Volatility

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.

(Indexed at 100)1

’07-’09 Management Fee CAGR: 28%

13

39%

17% 7%

18%

10%

8% 1%

16%

16%

10% 30%

11%

14%

3%

Management Fee Mix by Duration2 AUM Mix by Duration1

• Management fees supported by long duration AUM, which also benefit from mark-to-market insulation

• Average duration of 5+ years and 81% of management fees with a duration of > 3 years o 39% of management fees from permanent capital vehicles

• Initial duration of ~80% of AUM was greater than 7 years at inception

• 72% of AUM has a duration of > 3 years

Stable, Long Duration AUM

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.

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

Managed Accounts

72% > 3 years 81% > 3 years

AUM and Management Fees Supported by Long-Dated Assets

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Available Capital $bn

AUM Not Yet Earning Fees

$bn

$7.1 $8.5 $9.9 $9.2 $8.3 $13.0

$5.7 $4.9

$4.3 $9.6 $11.9

$9.4

$0.3 $1.9

$4.0

$3.6 $3.0 $2.8

$13.0 $15.3

$18.2

$22.4 $23.2 $25.1

2012 2013 2014 2015 2016 2017

Credit Private Equity Real Estate

$7.2 $7.7 $5.8

$7.3 $7.7

$11.4

$0.9 $1.4

$1.9

$7.2 $9.3 $2.2

$0.9 $1.5

$0.9

$0.9

$0.9

$8.1

$10.0 $9.2

$15.5

$18.0

$14.5

2012 2013 2014 2015 2016 2017

As of December 31, 2017, our Available Capital was $25.1 billion

As of December 31, 2017, $14.5 billion of our total AUM was Not Yet Earning Management Fees

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.

Significant Remaining Capacity for Investment

Investment capacity leaves room for growth across market cycles

15

$5.7

$10.8

$1.0

$1.6

2013 2017

$19.9 $22.7

$10.9

$21.7

2013 2017

Components of Incentive Eligible AUM4 Components of Shadow AUM Not Earning Fees

($ in billions)

Incentive Generating AUM Uninvested Shadow AUM for Future Deployment

Shadow AUM for Deployment for Follow-on Investments2

Net Performance Fee Receivable ($ in millions)

$186 $259

Implied Management Fees1 ($ in millions)

$44 $132

Stable Management Fees Well-Positioned to Grow

Clear Path to Increased Management Fees with Upside from Incentive Fees

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 including $12.0 billion from ARCC Part I fees in 2017.

% of LTM Management Fees1 9% 18%

50% committed to funds currently above performance hurdles

($ in billions)

$25.1 billion of total Available

Capital = 24% of AUM3

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Platform Attributes

• Global, scaled investment platform

• Diverse product offerings and unique investment sourcing capabilities

• Attractive track record of investment performance

• Experienced and cohesive team

Industry Trends

Levers to Drive Organic Growth

Growth Accelerators

• Rotation from liquid to illiquid assets

• Banks leaving void for private capital to fill

• Retailization of alternatives

• Growing pension liability gap and insurance yield demand

• Consolidation of LP relationships

• Fundraising growth and increased cross-selling

• New product offerings and investment solutions

• New distribution channels

• Geographic expansion

• Deployment of dry powder

• Realization of returns from incentive eligible AUM

• Future acquisitions facilitated by more liquid stock currency

• Opportunistically expand during market dislocations

• Strategic acquisitions and portfolio purchases

• Team lift-outs and strategic joint ventures and partnerships

Multiple Growth Opportunities in Attractive Industry

Leveraging the Ares Platform to Capitalize on Industry Tailwinds for Further Growth

17

Increasing Allocation to Alternatives

% Asset Allocation to Alternatives1

4%

9%

15%

20%

25%

1997 2002 2007 2012 2017E

% Institutional Funds Planning to Increase Allocation in Long-Term2

62%

50%

39%

36%

Private Debt

Infrastructure

Private Equity

Real Estate

$0.2

$0.6

$1.5

2004 2012 2018E

Retail Investors are Increasing Alternative Allocations, as Liquid Alternative Products Improve Accessibility3

Global liquid alternative assets ($ in trillions)

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.

Growing Global Demand for Alternatives

Recognized by Institutional and Retail Investors as an Attractive Complement to Traditional Portfolio Allocations

18

Rotation from Liquid to Illiquid Assets(2)

US pensions, 2005–17 ($ in trillions)

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.

Increasing Demand for Private Debt

Investors continue to increase allocations to private debt across most key investor types

76%

19%

5%

Increased

No Change

Decreased

Fund Manager Views on How Institutional Investor Appetite for Private Debt Has Changed over the Past 12 Months(1)

Bank/Investment Bank

Superannuation Scheme

Government Agency

Fund of Funds Manager

Sovereign Wealth Fund

Asset Manager

Wealth Manager

Endowment Plan

Insurance Company

Foundation

Private Sector Pension Fund

Public Pension Fund

Family Office

Increased

No Change

Decreased

$4

$6

$8

$10

$12

$14

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

3.5 1.8

3.8

Liabilities

Assets

$352

$290 $269

$246

$191 $170

$134 $108 $97

'09 '10 '11 '12 '13 '14 '15 '16 '17 YTD

Bank Level III Assets at FV

As banks leave void for private capital to fill ($ in billions)

Growing Pension Liability Gap Drives Demand for Yield(3)

19

$33.9 $38.3

$5.2

$7.4

$24.1

$29.4

$63.2

$75.1

2012 2016

Global Institutional Investment Assets by Segment1 Ares Direct AUM for Global Institutional Segments

Market CAGR

Pension Sovereign Wealth Funds Insurance

($ in trillions)

3%

9%

5%

Ares is Significantly Growing AUM in Large Institutional Segments

Ares is Growing its Client AUM Meaningfully Faster than the Underlying Assets in Institutional 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.

CAGR

33%

10%

45%

Ares Market

3%

9%

5%

($ in billions)

Ares Penetration Rate: 2.8bps 6.1bps

11x

9x

1x

$8.6

$26.7 $6.7

$9.9

$2.1

$9.2

$17.4

$45.8

2012 2016

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

20

$14.2

$36.9 $6.9

$12.7

$4.5

$8.2

$3.4

$4.5 $0.2

$29.0

$62.6

2012 2016

$33.2

$46.9

$19.7

$21.9 $7.7

$12.1

$0.6

$0.7

$2.6

$3.3

$63.9

$84.9

2012 2016

Global AUM by Region1 Ares Global Direct AUM by Client Geography

($ in trillions)

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

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.

CAGR

Ares Industry

($ in billions)

Industry CAGR

9%

3%

12%

4%

6%

North America

Europe Asia Pacific Middle East / Africa

Latin America

27%

17%

16%

7%

N/A

9%

3%

12%

4%

6%

Ares Industry Share: 4.5bps 7.4bps

3x

1x

6x

2x

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

21

Private Equity: Ares Corporate Opportunities Funds

$751

$3,510

$7,850

ACOF IAug '02

ACOF IIIFeb '08

ACOF VDec '15

Credit: Ares Capital Europe Funds

$481

$1,750

$4,840

ACE IJun '07

ACE IIAug '12

ACE IIIJul '15

Real Estate: Ares US Real Estate Funds

$256

$450

$824

Fund I1993

Fund III1997

Fund VIIIJul '13

Credit: Ares Private Credit Solutions Fund

$0

$3,365

--

PCSJan '17

Raised $3.4Bn for Inaugural Fund, ~$1Bn in Excess of Target, with 60% new clients

Credit: ARCC Fair Value of Investments

$183

$11,841

Dec '04 Dec '17

1

Strong Growth in Fund Families

Performance has Driven Strong Investor Demand for Larger Subsequent Funds and New Strategies

($ in millions)

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.

($ in millions)

($ in millions) ($ in millions) ($ in millions) Permanent Capital Vehicle

Fund: Vintage:

Fund: Vintage:

Fund: Vintage:

Fund: Vintage:

As of:

22

Multiple Avenues for Growth

Opportunistic

New Partnerships

New Geographies

New Channels

Organic

New Products

• Larger subsequent funds

• Cross-market our strategies to existing clients

• Growth of business development and investor relations groups

• Enter adjacent asset classes

• Continue to develop differentiated solutions

• Insurance • Sub-advisory partners • Traded and non-traded retail • Intermediary relationships • Family offices and high-net-worth

• Continued expansion in Europe and Asia

• New international markets

• Strategic partnerships

• Joint ventures

• Strategic acquisitions

• Portfolio purchases

1

2

3

4

5

Ares is Making Substantial Investments in Strategies to Offer More Client Solutions and is Expanding Into New Channels to Reach New Investors

23

Comprehensive M&A Review Process

Diversity of Opportunities Reviewed (2016-2017)

• Reviewed 150+ targets representing over $2 trillion of AUM over the past 2 years

• Dedicated Corporate Strategy Group focused on ongoing global expansion through new product development, strategic partnerships, investments and acquisitions

• To be considered strategic, an opportunity must be:

1. Complementary to Ares’ existing expertise

2. Accretive and stand on its own investment merit

3. Strong cultural fit

4. Able to increase growth through Ares Platform

Real Estate 45

Insurance 37

Credit 32

Distribution 15

Corp. Equities 11

Infrastructure 10

(# of opportunities)

Cementing Market Position Enhancing Existing Capabilities

Expansion into Complementary Space

Strategic M&A Initiatives

Highly Selective and Disciplined Approach to Inorganic Growth, Executing on Less than 5% of the Opportunities Reviewed

Strong Acquisition History

• Team proactively and opportunistically pursues various transactions for Ares and its vehicles including:

o Acquisitions of scale

o Cross platform investment partnerships

o Management team lift-outs

o Strategic balance sheet investments

o Tactical capital raises

o Tuck-in opportunities

o Opportunistic portfolio purchases

o Non-core asset divestitures

o Joint ventures

24

History of Increased Performance Strong Balance Sheet Enables Growth

2014 2017

Management Fees1

($ in millions)

$598

$745

Net Performance Fees ($ in millions)

$71

$164

Economic Net Income ($ in millions)

$289

$468

$375

$277

$91

$81

Balance Sheet Investments by Strategy

Assets 12/31/17

Cash $119

Investments 823

Net Performance Fee Receivable

259

Credit

Private Equity

Real Estate

Other

Debt Capitalization Maturity 12/31/17

Credit Facility ($1,065) 2022 $210

Senior Notes 2024 245

Term Loans 2026-2029 161

Total Debt Obligations $616

($ in millions)

Growth in Key Financial Metrics

Well Positioned for Future Opportunities

$147

$217

Fee Related Earnings ($ in millions)

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.

25

Fee Related Earnings Realized Performance Related Earnings

• Diversity and composition of AUM drive stable earnings

• Increased sizes of successor funds drive earnings growth

• Readily-deployable shadow AUM

• Adjacent fund strategies creating new AUM

• Scale efficiencies to drive margin expansion

• Increased fee opportunities from ARCC

• Realize accrued net performance fees

• Realize income from balance sheet investments2

• Increase in new performance fees and investment income from investment appreciation/income2

• Convert incentive eligible AUM into incentive generating AUM through deployment

• New fundraising of incentive eligible AUM

Path to Shareholder Value Creation

Shareholder Value Driven by Growth in Fee Related Earnings plus Reinvestment of Realized Performance Related Earnings

14% CAGR since 2014 $463 million Realized Performance Related Earnings since 20141

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.

$1.12 per share (annualized) qualified dividend with potential growth pegged to Fee Related Earnings3

Retained earnings to invest in organic & inorganic growth and other value creation activities

Confidential – Not for Publication or Distribution 26

Appendix

Confidential – Not for Publication or Distribution 27

We have experienced teams across the platform that are positioned for excellence in investing and client service

Advantages

Syndication, Trading & Servicing

6 traders in the U.S. and Europe

6 dedicated capital markets professionals ~30 direct lending professionals focused solely on asset management

Origination, Research & Investment Management

14 portfolio managers ~55 industry research and structured credit professionals

~120 direct origination professionals 11 distressed and restructuring specialists

$71.7 billion AUM(1)

25+ Partners averaging 24 years of experience

~235 dedicated investment professionals

Investor Relations & Business Operations

Established investor relations and client service across the Americas, Europe, Asia, Australia and the Middle East

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

Deep Investment Opportunity Set

Leading Platform of Liquid and Direct Lending Strategies

Ares Credit Group

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

Access to Differentiated Information to Inform

Credit Decisions

Ability to Express Relative Value

Accolades(2)

Global Sponsored Deal of the Year -

2016

Lender of the Year North America

2014, 2015 & 2016

ARCC Received Most Honored Designation & Highest

Rankings for Best CEO, CFO, IR Professional and Investor

Relations Program

Top Quartile Rankings for Several Funds

Syndicated Loans

High Yield

Structured Credit / CMBS

Asset Based Lending

Middle Market Cash Flow Loans

Liquid Credit Illiquid Credit

Project Finance

Private Mezz/ Opportunistic

Confidential – Not for Publication or Distribution 28

Advantages

Flexible Capital Mandates Multi-Asset Class Experience Proprietary Deal Flow

1. AUM amounts are as of December 31, 2017. 2. As of December 31, 2017.

Ares Private Equity Group We have $24.5 billion(1) of assets under management and have three dedicated investment teams

Corporate Private Equity Power Infrastructure Special Situations China Growth Capital

$18.3 billion AUM $4.0 billion AUM $1.6 billion AUM $0.2 billion AUM

Majority/Shared Control Investments Power Generation, Transmission and

Midstream Investments Stressed, Distressed and Special

Situations Investments Minority Growth Capital

Buyout, Growth Equity , Rescue Capital, Distressed Buyouts /

Discounted Debt Accumulation

Acquisition of Cash Flowing Projects and Development of New Power

Infrastructure Asset

Stressed/Distressed Debt, Post-Reorg Equity, Rescue Capital, Special Situations

Opportunistic, CLO Debt and Equity, Other Specialty Finance Opportunities

Growth Equity

Leading Platform of Private Equity Strategies

Corporate Private Equity Power Infrastructure Special Situations China Growth Capital

$18.3 billion AUM $4.0 billion AUM $1.6 billion AUM $0.2 billion AUM

Majority/Shared Control Investments

Power Generation, Transmission and Midstream Investments

Stressed, Distressed and Special Situations Investments

Minority Growth Capital

Buyout, Growth Equity , Rescue Capital, Distressed Buyouts /

Discounted Debt Accumulation

Acquisition of Cash Flowing Projects and Development of

New Power Infrastructure Asset

Stressed/Distressed Debt, Post-Reorg Equity, Rescue Capital,

Special Situations Opportunistic, CLO Debt and Equity, Other

Specialty Finance Opportunities

Growth Equity

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

Assets Under Management(1) $18.6 billion AUM $4.4 billion AUM $1.5 billion AUM

Investment Focus Majority/Shared Control Investments, Minority Growth Capital (China)

Power Generation, Transmission and Midstream Investments

Stressed, Distressed and Special Situations Investments

Types of Investments Buyout, Growth Equity , Rescue Capital, Distressed Buyouts / Discounted Debt

Accumulation, Growth Equity

Acquisition of Cash Flowing Projects and Development of New Power Infrastructure

Asset

Stressed/Distressed Debt, Post-Reorg Equity, Rescue Capital, Special Situations

Opportunistic, CLO Debt and Equity, Other Specialty Finance Opportunities

Investment Professionals(2) ~65 ~20 ~10

Offices Los Angeles, Chicago, London, Shanghai,

Chengdu, Hong Kong Boston, Los Angeles, New York, San

Francisco Los Angeles

Assets Under Management(1) $18.3 billion AUM $4.0 billion AUM $1.6 billion AUM $0.2 billion AUM

Investment Focus Majority/Shared Control Investments

Power Generation, Transmission and Midstream Investments

Stressed, Distressed and Special Situations Investments

Minority Growth Capital

Types of Investments

Buyout, Growth Equity , Rescue Capital, Distressed Buyouts /

Discounted Debt Accumulation

Acquisition of Cash Flowing Projects and Development of

New Power Infrastructure Asset

Stressed/Distressed Debt, Post-Reorg Equity, Rescue Capital,

Special Situations Opportunistic, CLO Debt and Equity, Other

Specialty Finance Opportunities

Growth Equity

Investment Professionals(3) 63 19 11 11

Offices Los Angeles, London, Chicago Boston, Los Angeles, New York,

San Francisco Los Angeles Shanghai, Chengdu, Hong Kong

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

Confidential – Not for Publication or Distribution 29

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

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, Development, Distress

Repositioning, Lease-up, Redevelopment, Development, Distress

Senior Debt Mezzanine Debt

65 investments 43 investments 64 investments

Multifamily, Industrial, Hospitality, Office and Retail

Retail, Office, Industrial and Residential Multifamily, Industrial, Hospitality, Office, 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.

Advantages

Cycle-Tested Results

Proprietary Relationship

Deal Flow

Access to Real-Time Market and

Corporate Trends Top 15 Real Estate Manager Based on

2012-17 Equity Raised

Investment track records of 15+ years in both U.S. and European real

estate private equity Rated Special Servicing Platform 2015, 2016, 2017

Accolades(2)

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

30

$ 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

GAAP Statements of Operations

31

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.

$ 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%

RI, ENI and Other Measures Financial Summary

32

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.

$ 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

GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis

33

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.

$ 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

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

34

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.

35

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.

Performance Notes to Long Track Record of Demonstrated Investment Performance Slide

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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.

Performance Notes to Long Track Record of Demonstrated Investment Performance Slide

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• 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 Credit Group Slide

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.