Morgan Stanley Financials Conference

Morgan Stanley Financials Conference

June 2015

Not for Publication or Distribution 2

DisclaimerThe information contained in this presentation is summary information that is intended to be considered in the context of Ares’ SEC filings and other public announcements that Ares may make, by pressrelease 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. Thesematerials contain information about Ares, its affiliated funds and certain of their respective personnel and affiliates, information about their respective historical performance and general informationabout 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 whichcannot be assured.

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 anyaffiliate 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 shallbe 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 significantelements 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 aremade 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, projectionsor 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 offeror 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 willcontain 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’ futureperformance 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 notguarantees 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 fromtime 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 indicativeof 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 directlyapplicable 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 forthherein 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 agreater understanding of Ares’ business and that investors should review the same supplemental non‐GAAP financial measures that management uses to analyze Ares’ performance. The measuresdescribed 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 withGAAP. 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 ofthese 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 tosum.


Table of Contents

I. Overview

II. Market Opportunity

III. Investment & Growth Strategy

IV. Financial Performance & Position

V. Conclusion

VI. Appendix

Segment Review

Financial Information

Additional Corporate Information

Performance Appendix

Overview

Confidential – Not for Publication or Distribution 5

Ares Management Overview• Ares Management, L.P. (NYSE: ARES) is a leading global alternative asset manager with approximately $87 billion of assets

under management(1)

◦ Since our inception in 1997, we have adhered to a disciplined investment philosophy that focuses on delivering compelling risk‐adjusted investment returns throughout market cycles

• We have four distinct but complementary investment groups that have the ability to invest across the capital structure◦ We believe each group is a market leader that has demonstrated a consistent investment track record

Tradable Credit Direct Lending Private Equity Real Estate

A leading participant in the tradable, non‐investment grade

corporate credit markets

One of the largest self‐originating direct lenders to the U.S. and European middle markets

One of the most consistent private equity managers in the U.S. with a growing international presence

A leading participant in the real estate private equity markets and a growing direct lender

Assets Under Management $33 billion $29 billion $15 billion $10 billion

StrategiesLong‐Only CreditAlternative Credit

U.S. Direct LendingEuropean Direct Lending

U.S. / European Flexible CapitalU.S. Power and Energy Assets

China Growth Capital

Real Estate DebtReal Estate Equity

1. As of March 31, 2015, AUM amounts include capital available to vehicles managed or co‐managed by Ares, including funds managed by Ivy Hill Asset Management, L.P.


Differentiated Business Model

TRADITIONAL ASSET MANAGERS

ALTERNATIVE ASSET MANAGERS LONG-LIVED, LOCKED-

UP CAPITAL UPSIDE THROUGH

PERFORMANCE FEES STRONG GROWTH

FOCUS

BROAD ARRAY OF FUNDS

MANAGEMENT FEE DRIVEN BUSINESS

STABLE, LESS VOLATILE EARNINGS

We believe Ares has a differentiated business model benefitting from high growth and consistent historical performance


The Power of our Platform

Positioned for Consistent

Performance & Growth

Scale & Experience

Multi‐Asset Capabilities with Flexible Capital

Collaborative Culture Cross group daily interaction Deep team of talented

professionals sharing ideas and best practices

Flexibility to pursue attractive risk adjusted return opportunities

Demonstrated track record of favorable returns in a wide range of market conditions

Insight from over 1,500+ investments

In‐house research ~800 employees across

U.S., Europe and Asia

Distinguishing features that together propel our investment performance and growth



Track Record of PerformanceThe power of our platform has led to attractive risk-adjusted returns across asset classes

5%

9%

14%

19%

U.S. BankLoans

U.S. HighYield

CreditOpportunities

SpecialSituations

13% 12%

ARCC Ares Capital Europe

Gross Annualized Returns Since Inception and Outperformance Versus Indices

Asset Level Realized Gross IRRs Since Inception Gross Internal Rates of Return Since Inception

+47bps +78bps +673bps +1525bps

6%

15% 16%

ACRE U.S. Equity Europe Equity

#6 of 68 funds for 5‐year

Performance in U.S. Short Duration

Top 15 Real Estate Manager Based on 2010‐15 Equity Raised

2013, 2014Mid‐MarketLender of the Year

Rated Servicing Platform with Above Average Distinction from S&P

Investment track recordsof 15+ years in both bankloans and high yield bonds

Largest BDC by market capitalization & total assetsGenerated a 13% annualized total shareholder return since its 2004 IPO – outperforming S&P 500, bank loans and high yield by 500‐850bps

#30 of 955 funds for 5‐year

Performance in U.S. Fixed Income

2012 North American Special Situations /

Turnaround Firm of the Year

Manager of a Top 10 Buyout Fund for Vintages 2006 through 2010 (2013 Performance Monitor)

One of Most Consistent Performing Buyout Fund Managers in North America (2013 Performance Monitor)

2013 Best Acquirer of Power Assets

20% 19%

32%

25%

16%

ACOF I2003

Vintage

ACOF II2006

Vintage

ACOF III2008

Vintage

ACOF IV2012

Vintage

U.S. Power& EnergyAssets

Note: Please refer to the end of this presentation for additional information and performance notes. Performance returns as of March 31, 2015. There can be no assurance that unrealized values will be achieved. Tradable Credit: Annualized returns over the same period, net of fees, were 4.8% for U.S. Bank Loan funds, 8.0% for U.S. High Yield funds, 10.9% for Credit Opportunities funds and 14.7% for Special Situations funds. Private Equity: Net IRRs for the period are 14% for ACOF I, 14% for ACOF II, 23% for ACOF III, and 12% for ACOF IV. Net IRR is 11% for U.S. Power & Energy Assets and is calculated based on the actual cash inflows and outflows, plus the applicable funds’ net asset value as of March 31, 2015. Net numbers are after giving effect to management fees, incentive fees and other expenses and for ACOF funds exclude commitments by the General Partner and Schedule I investors who do not pay management fees. Real Estate: Net IRRs are approximately 11% for U.S. Equity Value‐Add and Opportunistic Strategies and 11% for Europe Equity Value‐Add and Opportunistic Strategies and are based on actual and projected cash flows as of the period indicated. Net amounts are after giving effect to management and incentive fees and other expenses. The performance, awards/ratings noted herein relate only to selected funds and may not be representative of any given client’s experience and should not be viewed as indicative of Ares’ or its funds’ future performance. Past performance is not indicative of future results.

Unleveraged Effective Yield for ACRE

Gross Internal Rates of Return Based on Actual and Projected Cash Flows

Value‐Add and Opportunistic Strategies

2013 3rd Place CEO Ranking in Brokers, Asset Managers & Exchanges

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

Mid‐Cap Lender of the Year

ARCC: BDC of the Year

EMEA Unitranche Lenderof the Year, Co‐Winner


Consistent Growth Across Market Cycles(1)

$ in m

illions

The dynamic nature of our strategies and structures allows us the opportunity to capitalize on various market cycles

Assets Under Management

1) Past performance is not indicative of future results. Asset growth involves a combination of new fund formation, asset appreciation as well as asset acquisition. 2) Management fees shown for the last twelve months ending 3/31/15.

Our attractive investment performance has contributed to robust AUM growth over the past ten years

$0

$100

$200

$300

$400

$500

$600

$700

$800

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1‐15

$ in billions

Tradable Credit

Direct Lending

Private Equity

Real Estate

Management Fees 2

Market Opportunity

10


10.6x

9.1x

‐1%

1%

3%

5%

7%

9%

11%

13%

15%

8.5x

9.0x

9.5x

10.0x

10.5x

11.0x

11.5x

Assets to Equity of KBW Bank Index(4)

Annual Return on Equity of KBW Bank Index(4)

De-leveraging of the Global Banking System(1)

…which has resulted in lower ROEs, leverage and risk tolerance

ROE and Leverage

1. SNL, June 2015. 2. Tier 1 Common Capital ratios for BAC, C, JPM, UBS and WFC. 3. ROE shown for the last twelve months ended March 31, 20154. Calculated as the equally weighted average of the KBW Regional Bank Composite, which includes 50 regional banks with market capitalization ranging from $0.7 billion to $5.9 billion.

The banks now hold 40-50% more capital than pre-recession…

Top 5 Banks: Average Tier 1Common Capital Ratio(2)

Basel III

Dodd Frank/Volcker Rule

Leverage Lending Guidance

1. Increasing Bank Capital Requirements

2. Reducing Bank Liquidity

3. Constraining Bank Leverage

4. Decreased Risk Taking

Bank Regulations

4%5%6%7%8%9%

10%11%

Q1‐06

Q3‐06

Q1‐07

Q3‐07

Q1‐08

Q3‐08

Q1‐09

Q3‐09

Q1‐10

Q3‐10

Q1‐11

Q3‐11

Q1‐12

Q3‐13

Q1‐13

Q3‐13

Q1‐14

Q3‐14

Q1‐15


Increasing Benefits of Scale in the Asset Management SpaceWe believe fund investors are allocating a greater share of their assets to established and diversified platforms

Capabilities of a Scaled Manager Advantages Provided to Investors

Broad Multi‐Asset Class Product Offering Greater opportunity to meet investor needs across the risk return spectrum

Deep Industry Experience Improving Due Diligence Greater visibility into market and company specific trends

Sophisticated Risk Management Processes Ensuring proper fund diversity and mitigation of counterparty risk

Robust Legal and Compliance Functions Ability to address legal and compliance risks in a complex regulatory environment

Established Accounting and Reporting Procedures Significant transparency


5%

11%

Non‐alternatives Alternatives

1. Source: McKinsey & Company, The $64 Trillion Question: Convergence in Asset Management, February 2015. 2. Source: McKinsey & Company, The New Imperatives: Gaining an Edge in North American Asset Management, December 2014.3. Excludes performance fees (i.e., carried interest).4. Excludes retail alternatives and funds of funds. 5. Source: Preqin Investor Outlook Alternative Assets H1 2015, February 2015.

Accelerated Growth of Alternative Asset Allocations • From 2005‐2013, growth in alternative investments more

than doubled the growth rate of non‐alternatives

• By 2020, McKinsey & Company projects that alternatives could account for ~40% of revenues in the global asset management industry (1)

• According to Preqin, between a third and two‐thirds of institutional investors are seeking to increase allocations into alternative asset classes we manage

2005 – 2013 AUM CAGR(1)

33% 40%

11%14%12%9%

35% 30%

8% 7%

0%

20%

40%

60%

80%

100%

120%

2013 2020E

Cash and passive

Active equities

Active fixedincome

Balanced/multi‐asset

Alternatives

Global Asset Manager Market: Estimated Revenue Pool(2)(3)(4)

~$270B ~$420B

Investor Intentions for Allocations to Alternatives Long Term(5)

16% 19% 5% 8%

49%60%

60%

33% 27%

36%21%

35%

67% 65%

0%

20%

40%

60%

80%

100%

Decrease Allocation Maintain Allocation Increase Allocation

Private Equity

Hedge Funds

RealEstate Infrastructure Private

Debt

Investment & Growth Strategy


Spectrum of Alternatives Strategies

1. Comprised of investment vehicles with and without leverage.2. Target returns are shown for illustrative purposes after the deduction of any management and incentive fees and other expenses. No assurance can be made

that targeted returns will be achieved and actual returns may differ materially. An investment in any of the mandates is subject to the execution of definitive subscription and investment documentation for the applicable funds.

Wide range of alternatives strategies across the risk-reward spectrum

Credit Strategies

Private Equity Strategies

Net Target Returns(2)

Long Only: High Yield /Bank Loans

Long Only: Structured Credit

U.S./EuropeDynamic Credit

U.S. Direct Lending(1)

EuropeDirect Lending(1)

U.S./EuropeCredit Opportunities(1)

U.S./EuropeReal Estate Debt

U.S./EuropeReal Estate Equity

U.S./EuropeSpecial Situations

U.S./Europe Corporate Private Equity

AsiaPrivate Equity

Risk and Reward

5% 10% 15% 20% 25%

U.S. Power and Energy Assets


Tradable Credit Group Direct Lending Group

Private Equity Group Real Estate Group

0%

20%

40%

60%

80%

100%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q12015

“Traditional” Sponsorship Situations Stressed / Distressed Balance Sheet Situations

Flexible Strategies Provide Investment Opportunities Across Market Cycles

ARCC Average Annual Total Shareholder Return of ~13% since October 2004

Ares Strategy Defensive / Recession Recovery / Expansion Performance Record

Opportunistic • Recapitalizations• Distressed for Control• NPLs

• New Development

Value Add • Cash flow assets • Undermanaged / repositions

Global Debt • Rotate to more senior credit investments

• Rotate to more junior credit investments

Market Environment

Ares Credit Ops – Since Inception Gross Annualized Return of 14%

Note: All performance shown on a gross basis. Please refer to the Performance Appendix at the end of the presentation for important information. Performance returns as of March 31, 2015. Past performance is not necessarily indicative of future results. An investment in ARES is discrete from investments in underlying funds. Private Equity Group: Net IRRs for the period are 14% for ACOF I, 14% for ACOF II, 23% for ACOF III, and 12% for ACOF IV. Net numbers are after giving effect to management fees, incentive fees and other expenses and for ACOF funds exclude commitments by the General Partner and Schedule I investors who do not pay management fees. Tradable Credit Group: Ares Credit Opportunities Aggregate Composite net return since inception is 10.9%. Portfolio allocations shown for ASIP I, representative account. Each account is individually managed and account characteristics may vary. Direct Lending Group: Ares Capital Corporation’s stock price‐based total return is calculated assuming dividends are reinvested at the end of day stock price on the relevant quarterly ex‐dividend date. Real Estate Group: Net IRRs are approximately 11% for U.S. Equity Value‐Add and Opportunistic Strategies and 11% for Europe Equity Value‐Add and Opportunistic Strategies and are based on actual and projected cash flows as of the period indicated. Net amounts are after giving effect to management and incentive fees and other expenses. The performance noted herein relate only to selected funds and may not be representative of any given client’s experience and should not be viewed as indicative of Ares’ or its funds’ future performance.

Investors invest with us across market cycles given our adaptable strategies and our history of capitalizing on market volatility

0%

20%

40%

60%

80%

100%

Q4‐08

Q1‐09

Q2‐09

Q3‐09

Q4‐09

Q1‐10

Q2‐10

Q3‐10

Q4‐10

Q1‐11

Q2‐11

Q3‐11

Q4‐11

Q1‐12

Q2‐12

Q3‐12

Q4‐12

Q1‐13

Q2‐13

Q3‐13

Q4‐13

Q1‐14

Q2‐14

Q3‐14

Q4‐14

Q1‐15

Opportunistic Secured Opportunistic Unsecured Special Situations Structured Credit Hedges

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1‐15

% of T

otal Portfolio (at fair v

alue

)

Senior Secured Loans SSLP Senior Subordinated DebtCLO/CDO & Senior Notes Equity & Other

U.S. Equity15% Gross

IRR

Europe Equity

16% Gross IRR

ACRE6% Unlevered

YieldTotal 3‐Year Deployment $2.2bn invested

Invested Capital$mm

$95 $292 $252 $310 $951 $1.471 $381 $856 $935 $999 $1,205 $1,234 $432

$3.4bn invested

ACOF I20% Gross IRR

ACOF II19% Gross IRR

ACOF III32% Gross IRR

ACOF IV25% Gross IRR


Focus on Long-Lived, Locked-Up Capital

Permanent Capital

10 or more years

7 to 9years

3 to 6years

Fewer than 3 years

Managed Accounts

Management Fee Visibility

Performance Fee Creation

Lower Redemptions

~55% Long‐Lived Capital

As a percentage of March 31, 2015 AUM

18% 15%

20%

33%

7%7%

~55% of Ares’ capital base has a tenor of 7 years or more


Pension, 20%

Bank/Private Bank, 10%

SWF, 10%

Insurance, 8%Investment

Manager, 2%Endowment, 2%

Other, 5%

15%

28%

Diversified & Growing Investor Base

187

626

2011 3/31/2015

PensionSWFBank/Private BanksInvestment ManagerInsuranceEndowmentOther

As a percentage of March 31, 2015 AUM

Institutional Direct

Institutional Intermediated

Public Vehicles & Related(1)

~57% Institutional Direct

Number of Institutional Direct Investors Has Increased Significantly

Successful Cross Selling Effort Across the Ares Platform

77%

21%

2%2011

61%34%

5%

3/31/15

1 Fund 2‐5 Funds > 5 Funds

% of investors invested across multiple funds

Aided by favorable performance, Ares has cross marketed its existing investors into new funds over the past few years

Our deep and expanding investor relationships are founded on our demonstrated performance

1. Includes AUM managed or co‐managed by Ares, and the AUM of Ivy Hill Asset Management, L.P., a wholly owned portfolio company of ARCC and a registered investment adviser.


1

2

3

4

5

6Opportunistic

New Partnerships

New Geographies

New Channels

Organic

New Products

• Larger subsequent funds

• Cross‐market our strategies to existing clients

• Growth of business development group

• Enter adjacent asset classes • Continue to develop differentiated solutions and regulatory friendly products

• Insurance• Sub‐advisory partners• Retail• Intermediary relationships

• Continued expansion in Europe and Asia• New international markets

• Strategic partnerships• Joint ventures

• Strategic acquisitions• Portfolio purchases

Multiple Avenues for Growth

Financial Performance & Position


Credit Facility

Facility Size ~$1.0bn

Pricing L + 1.50%

Maturity 4/30/19

Cash $69

Performance Fees Receivable 590

Due from Affiliates 151

Goodwill & Intangibles 264

Investments at Fair Value 607

Other Assets 64

Total Assets $1,745

Debt Obligations $299

Performance Fee Compensation Payable 421

Other Liabilities 235

Total Liabilities $955

Total Equity and Redeemable Interest $790

Total Liabilities, Redeemable Interest and Equity $1,745

Combined Balance Sheet (1)March 31, 2015 ‐ $mm

Low DebtLow Debt

Strong PortfolioStrong Portfolio

Leveragable FacilityLeveragable Facility

Net debt of $230 million

Well-Capitalized Balance Sheet

High Quality UnitholdersHigh Quality Unitholders

Private Equity $253mm

Tradable Credit 198mm

Direct Lending 97mm

Real Estate 58mm

Total Investments $607mm

1. Reflects the balance sheet of Ares Management, L.P. and its consolidated subsidiaries, excluding the effect of consolidated funds. 2. As of March 31, 2015. Ownership assumes the exchange of Ares Operating Group Units for common units.

Ownership (2)

Ares Employees 72.5%

ADIA 16.2%

Alleghany 5.9%

Public Unitholders 5.4%

We have a strong capital base for growth


Total Fee Revenue Composition(1)

$363mm $572mm $619mm

Net Performance Fees: Other(2)

Mgmt. Fees: Real Estate

Mgmt. Fees: Private Equity

Mgmt. Fees: Direct Lending

Mgmt. Fees: Tradable Credit

Net Performance Fees: Contractual Interest & Dividend Payments

High Quality & Diverse Revenues

1. Percentage of management fees includes the following amounts attributable to ARCC Part I Fees: 22% in 2011, 17% in 2012, 18% in 2013 , 18% in 2014 and 19% in the LTM 3/31/15 period.2. Net Realized and Unrealized Gains (Losses) on investments, foreign currency, derivative contracts and other.

$697 mm

Stable and diversified management fee driven business model

$669 mm

v

vv

v v

89% in Mgmt. Fees 73% in Mgmt. Fees 84% in Mgmt. Fees 89% in Mgmt. Fees 89% in Mgmt. Fees

27% 25% 23% 22% 21%

43%33% 39% 41% 40%

19%

12%15% 14% 15%

1%

2%

6%13% 13%

4%

11%

9%2% 4%

6%16%

7% 8% 7%

2011 2012 2013 2014 LTM 3/31/15


$38 $44

$107$128

$170

$211

$264

$324

$415

$503

$598 $621

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013(2) 2014 2015LTM

$ in millions

Note: Past performance is not indicative of future results. 1. Measured for the 12‐month period ending 3/31/15, except AUM which is as of 3/31/15. 2. For reconciliation of non‐GAAP metrics including Fee‐related Earnings and Economic Net Income to GAAP metrics, see the appendix.

Total AUM$bn $49

$60$74 $82 $87

Total Fee Revenue $mm(2)

$363

$572$619 $669 $697

Fee‐related Earnings(2)

$mm$120

$138$153 $147 $164

EconomicNet Income(2)

$mm $194

$402$329

$289 $295

2011‐2015 Key Financial Metrics2004‐2015(1) Management Fees

Growth of Key Financial Metrics

2012 2013 2015(1) CAGR

19%

22%

10%

14%

20142011


$120 $138

$153 $147

$48

$9

$16

$25 $32

$7

$1

$2

$6 $10

$3

$15

$19

$22$31

$11

$0

$40

$80

$120

$160

$200

$240

2011 2012 2013 2014 Q1‐15

FRE BDG Expenses

New Office Locations Technology Spending

$140 $143

$154 $161 $162

$31 $35 $41 $40 $48

$0

$40

$80

$120

$160

$200

Q1‐14 Q2‐14 Q3‐14 Q4‐14 Q1‐15

Mgmt. Fees FRE2

Ares Invested Heavily in BDG and Infrastructure to Support Future AUM Growth(1)

Fee Related Earnings and Growth Expenditures

1. BDG represents Business Development Group, which includes marketing and investor relations professionals.2. Includes ARCC Part I Fees of $28,318, $25,666, $31,156, $33,396, $29,042 for Q1‐14, Q2‐14, Q3‐14, Q4‐14 and Q1‐15, respectively.

Management Fees and Fee Related Earnings($mm)

Past growth expenditures/investments on new BDG personnel, technology and geographic expansion have reduced earnings growth; however, we believe we are beginning to see the benefits in 2015

($mm)


Significant Remaining Capacity for Investment

Available Capital(1)$bn

AUM Not Yet Earning Fees(2)

$bn

$0.3 $0.6 $1.7$5.7 $6.2

$3.2$6.7

$7.2

$5.4 $5.5

$2.1

$5.5$4.5

$3.1 $3.6

$0.2

$0.3$1.9

$4.0 $3.6

$5.9

$13.0

$15.3

$18.2 $18.9

2011 2012 2013 2014 3/31/2015


1. Available Capital is comprised of uncalled committed capital and undrawn amounts under credit facilities. 2. Represents AUM eligible for fees but not yet earning fees.

$0.3 $0.4$1.7 $1.9 $2.6$2.9

$6.8$6.7

$5.2$5.4

$0.4

$0.9

$0.7$0.7

$0.9

$0.0

$0.0

$0.9$1.5

$1.3

$3.5

$8.1

$10.0$9.2

$10.1

2011 2012 2013 2014 3/31/2015

As of March 31, 2015, our Available Capital of $18.9 billion was primarily attributed to the acquisition of EIF and new capital raised in the Tradable Credit Group

As of March 31, 2015, $10.1 billion of our total AUM was not yet earning management fees primarily due to fund structures where payment of management fees is triggered by investment of capital rather than commitment

Conclusion


Conclusion

We believe Ares is well‐positioned to seek stable earnings and consistent growth

1. Demonstrated investment approach with favorable track records across strategies

2. Stable earnings due to long‐lived, locked up capital, diversified & growing investor base and high component of fee related earnings

3. Meaningful benefits from our scaled platform and collaborative culture

4. Compelling industry drivers

5. Multiple avenues of growth

1

2

3

4

5

AppendixSegment Review

28


17.8 18.7 19.123.3 23.2

5.97.2

8.9

9.1 10.2

2011 2012 2013 2014 3/31/2015Long Only Alternative Credit

Business Overview and Returns Assets Under Management ($bn)

• Ares has been managing below investment grade credit instruments since its inception more than 15 years ago

• Strategies invest across the non‐investment grade tradable corporate credit market− Long‐Only Credit: Bank Loans, High Yield Bonds− Alternative Credit: Dynamic Credit, Credit

Opportunities and Special Situations• Selected Performance Accolades*:

− #20 of 930 funds for 5‐year performance in U.S. Fixed Income (Lipper)

− #5 of 66 funds for 5‐year performance in U.S. Short Duration (Lipper)

Tradable Credit Group is a Leading Manager AcrossLong-Only and Alternative Credit Strategies

$23.7$25.9

$27.9$32.4

Key Statistics Selected Performance Metrics ($mm)(1)

3/31/15 % of Total

AUM ($bn) $33.4 38.4%

FEAUM ($bn) $26.0 39.6%

Available capital ($bn) $6.2 32.6%

Active funds 75 45.7%

Investment professionals ~60 17.4%

Current portfolio 600+ companies

Last Twelve Months 3/31/15

% of Total Segment

Management fee revenue $148.0 23.9%

Fee related earnings $92.9 30.1%

Performance related earnings $22.0 16.8%

Economic net income $114.9 26.1%

Distributable earnings $183.9 46.5%

*Note: please see Performance Appendix at the end of the presentation for important information. Past performance is not indicative of future results. The awards/ratings noted herein may not be representative of any given client’s or investor’s experience and should not be viewed as indicative of Ares’ future performance. 1. Percentage of total segment metric; excludes Operations Management Group. For reconciliation of non‐GAAP metrics, including fee‐related earnings, economic net income and distributable

earnings, to GAAP metrics, see the Appendix. Differences may arise due to rounding.

$33.4


15.3 18.6

22.0 23.2 23.6

1.4

3.8

5.5 5.5 5.1

2011 2012 2013 2014 3/31/2015U.S. Direct Lending Europe Direct Lending

Business Overview and Returns Assets Under Management ($bn)

Direct Lending Group is Among the Largest Self Originating Middle Market Lenders

$16.7

$22.5

$27.5$28.7

Key Statistics(1) Selected Performance Metrics ($mm)(2)

3/31/2015 % of Total

AUM ($bn) $28.7 33.0%

FEAUM ($bn) $22.6 34.4%




Current portfolio 440+ companies


% of Total Segment

Management fee revenue (3) $280.1 45.1%





*Note: please see Performance Appendix at the end of the presentation for important information. Past performance is not indicative of future results. The awards/ratings noted herein may not be representative of any given client’s or investor’s experience and should not be viewed as indicative of Ares’ future performance. 1. Includes funds managed or co‐managed by Ares and portfolio companies thereof. Also includes funds managed by, professionals and portfolio companies of Ivy Hill Asset Management, L.P. (IHAM),

a wholly owned portfolio company of ARCC, and a registered investment adviser. 2. Percentage of total segment metric; excludes Operations Management Group. For reconciliation of non‐GAAP metrics, including fee‐related earnings, economic net income and distributable

earnings, to GAAP metrics, see the Appendix. Differences may arise due to rounding.3. Includes ARCC Part I Fees of $119.3 million.

• Launched in 2004, Ares Direct Lending Group principally originates private debt investments in middle market companies that offer attractive risk‐adjusted returns− U.S.: Includes the largest business development

company, Ares Capital Corporation (NASDAQ: ARCC) by both market capitalization and assets; a market leader in the non‐bank lending sector

− Europe: A leading provider of creative middle market debt financing

• Selected Performance Accolades*:− 2013 PDI co‐winner awards for Americas Senior Lender

and EMEA Unitranche Lender of the Year− 2014 PEI Mid‐Cap Lender of the Year

$28.7


Business Overview and Returns Fund Sizes & Significant Transactions ($bn)

Private Equity Group Demonstrates a Differentiated Investing Approach and Top Tier Performance


3/31/2015 % of Total

AUM ($bn) $14.8 17.0%

FEAUM ($bn) $11.1 16.9%




Current portfolio ~30 companies and 75+ U.S. Power and Energy Assets


% of Total Segment






*Note: please see Performance Appendix at the end of the presentation for important information. Past performance is not indicative of future results. The awards/ratings noted herein may not be representative of any given client’s or investor’s experience and should not be viewed as indicative of Ares’ future performance. 1. Percentage of total segment metric; excludes Operations Management Group. For reconciliation of non‐GAAP metrics, including fee‐related earnings, economic net income

and distributable earnings, to GAAP metrics, see the Appendix. Differences may arise due to rounding.

$0.8

$2.1

$3.5

$4.7

$0.2

ACOF I ACOF II ACOF III ACOF IV ACOF AsiaFund Vintage:

Selected Investments*

:

2003 2006 2008 2012 2011

• Currently manages $15 billion of AUM • North American and European flexible capital invests in four principal

transaction types across all economic cycles: rescue / de‐leveraging capital, distressed buyout, prudently leveraged control buyouts and growth equity

• Closed acquisition of Energy Investors Funds (“EIF”) on January 1, 2015; EIF targets assets across the U.S. power generation, transmission, and midstream sectors

• China Growth Capital provides a local team / global platform offering targeting minority growth equity investments

• Selected Performance Accolades*:− Recognized by Preqin as “One of the Most Consistent Performing

Buying Funds Managers in North America” (2013 Performance Monitor)

− 2013 Best Acquirer of Power Assets (The 2014 Deals & Firms of the Year Awards, Power Finance & Risk)


Business Overview and Returns Assets Under Management

Real Estate Group has a Demonstrated Track Record of Investing Across the Capital Structure(1)


3/31/2015 % of Total

AUM ($bn) $10.0 11.5%

FEAUM ($bn) $6.0 9.1%




Current portfolio 175+ properties


% of Total Segment






1. Based on equity raised from January 2010 to March 2015. The awards/ratings noted herein may not be representative of any given client’s or investor’s experience and should not be viewed as indicative of Ares’ future performance.

2. Percentage of total segment metric; excludes Operations Management Group. For reconciliation of non‐GAAP metrics, including fee‐related earnings, economic net income and distributable earnings, to GAAP metrics, see the Appendix. Differences may arise due to rounding.

• Ares Real Estate Group manages comprehensive public and private equity and debt strategies, with ~$10bn of AUM − Real Estate Equity: U.S. and Europe equity platforms

focused on Value Add and Opportunistic− Real Estate Debt: U.S. focus on senior debt, mezzanine

debt and loan servicing• Manages a publicly traded REIT: Ares Commercial Real

Estate Corporation (NYSE: ACRE)• Services a portfolio of over $4.2 billion in mortgage loans

principally through a subsidiary of ACRE• Selected Performance Accolade:

− Recognized as a Top 15 real estate manager by PERE(1)

U.S. Equity40%

European Equity28%

Debt32%

$10.0billion

AppendixFinancial Information

33

34

Stand Alone Segments – Annual Financial Data

* Differences may arise due to rounding. 1. Management fees include $15.0 million in one‐time deferred fees for the year ended December 31, 2013, which were contractually deferred until certain requirements were met. $1.1 million related to a European fund within the

Tradable Credit Group and $13.9 million related to a fund within the Tradable Credit Group that earned such fees over a five year period. 2. Includes ARCC Part I Fees of $119 million, $111 million and $95 million for the years ended December 31, 2014, 2013 and 2012, respectively; $29 million and $28 million for the quarter ended March 31, 2015 and 2014,

respectively. 3. Fee related earnings, performance related earnings, economic net income and distributable earnings are non‐GAAP measures. For a reconciliation of these non‐GAAP measures to the most directly comparable GAAP measure, see

“GAAP to Non‐GAAP Reconciliation – Stand Alone Reporting Basis” slides included in this presentation.

$ in millions

2012 2013(1) 2014 2014 2015Direct Lending Group $190 $238 $276 $66 $71Tradable Credit Group 145 146 144 34 38Private Equity Group 69 93 91 23 37Real Estate Group 10 40 88 17 17Management Fees(2) 415 517 598 140 162

Other Fees (Admin. & Deal Income) 19 24 28 7 7Comp. & Benefits (237) (305) (373) (90) (94)SG&A (58) (83) (106) (25) (28)Fee Related Earnings(3) 138 153 147 31 48

Net Performance Fees 157 102 71 23 28Net Investment Income 107 74 71 24 8Performance Related Earnings(3) 265 176 142 46 35

Economic Net Income(3) $402 $329 $289 $77 $83

Other DataFee Revenue (Mgmt. Fees & Net Performance Fees) $572 $619 $669 $163 $190Distributable Earnings(3) $302 $306 $233 $55 $67Management Fees as % of Total Fees 73% 84% 89% 86% 85%Fee Related Earnings as % of Economic Net Income 34% 47% 51% 40% 57%Fee Related Earnings as % of Distributable Earnings 46% 50% 63% 57% 71%

Year ended December 31, Three months ended March 31,

35

GAAP to Non-GAAP Reconciliation – Stand Alone Reporting Basis

Note: Past performance is not indicative of future results. This table is a reconciliation of income before provision for income taxes on a consolidated basis to FRE on a Stand Alone 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 millions Year ended December 31,2012 2013 2014 2014 2015

Economic net income and fee related earnings:

Income before taxes $1,262 $873 $557 $275 $407

Adjustments:

Amortization of intangibles $9 $34 $28 $9 $11Depreciation expense 5 6 7 2 1Equity compensation expenses 52 29 83 5 8Income tax expense 1 1 0 0 0Acquisition‐related expenses (1) 6 11 1 2Placement fees and underwriting costs 13 8 15 1 3Other non‐cash items 0 0 3 0 0Income before taxes of non‐controlling interests in Consolidated Funds (938) (629) (415) (216) (349)

Economic net income $402 $329 $289 $77 $83

Total performance fee income ($425) ($296) ($241) ($63) ($104)Total performance fee compensation expense 268 194 170 41 $76Total investment income (107) (74) (71) (24) ($8)

Fee related earnings $138 $153 $147 $31 $48

Performance fee – realized $391 $224 $146 $23 $36Performance fee compensation expense – realized (296) (134) (81) (16) (21)Other income realized net 88 85 60 21 12Net performance fee income – realized $183 $174 $126 $28 $26Less:

One‐time acquisition costs $0 ($6) ($11) ($1) ($1)Dividend Equivalent 0 0 0 0 (1)Income tax expense (1) (1) (2) 0 (0)Other non‐cash items 0 0 (2) 0 0Placement fees and underwriting costs (13) (8) (15) (1) (3)Non‐cash depreciation and amortization (4) (5) (10) (2) (1)

Distributable earnings $302 $306 $233 $55 $67

Three months ended March 31,

36

GlossaryARCC Part I Fees ARCC Part I Fees refers to fees based on ARCC’s net investment income (before ARCC Part I Fees and fees based on ARCC’s net capital

gains, which are paid annually (‘‘ARCC Part II Fees’’)), which are paid quarterly.

Ares Operating Group Units Ares Operating Group Units refer, collectively, to a partnership unit in each of the Ares Operating Group entities, which include Ares Holdings L.P., Ares Domestic Holdings L.P., Ares Offshore Holdings L.P., Ares Investments L.P. and Ares Real Estate Holdings L.P.

Assets Under Management Assets Under Management (or “AUM”) refers to the assets of our funds. For our funds other than CLOs, our AUM represents the sum of the net asset value of such funds, the drawn and undrawn debt (at the fund‐level including amounts subject to restrictions) and uncalled committed capital (including commitments to funds that have yet to commence their investment periods). For our fundsthat are CLOs, our AUM represents subordinated notes (equity) plus all drawn and undrawn debt tranches.

Consolidated Funds Consolidated Funds refers collectively to certain Ares‐affiliated funds, related co‐investment entities and certain CLOs that are required under GAAP to be consolidated in our combined and consolidated financial statements.

Economic Net Income Economic net income (or “ENI”) represents net income excluding (a) income tax expense, (b) operating results of our ConsolidatedFunds, (c) depreciation expense, (d) the effects of changes arising from corporate actions, and (e) certain other items that we believe are not indicative of our core performance. Changes arising from corporate actions include equity‐based compensation expenses, the amortization of intangible assets, transaction costs associated with acquisitions and capital transactions, placement fees and underwriting costs and expenses incurred in connection with corporate reorganization.

Distributable Earnings Distributable earnings (or “DE”) is a pre‐income tax measure that is used to assess amounts potentially available for distributions to stakeholders. Distributable earnings is calculated as the sum of Fee Related Earnings, realized performance fees, realized performance fee compensation expense, realized net investment and other income, and is reduced for expenses arising from transaction costs associated with acquisitions, placement fees and underwriting costs, expenses incurred in connection with corporate reorganization and depreciation. Distributable earnings differs from income before taxes computed in accordance with GAAP as it is presented before giving effect to unrealized performance fee income, unrealized performance fee compensation expense, unrealized net investment income, amortization of intangibles, equity compensation expense and is further adjusted by certain items described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations ‐‐‐Reconciliation of Certain Non‐GAAP Measures to Consolidated GAAP Financial Measures.”

Fee Earning Assets Under Management

Fee earning AUM (or “FEAUM”) refers to the AUM of our funds on which we directly or indirectly earn management fees. Fee earningAUM is equal to the sum of all the individual fee bases of our funds that contribute directly or indirectly to our management fees.

37

Glossary (continued)Fee Related Earnings Fee related earnings (or “FRE”) is a component of ENI and is used to assess the ability of our business to cover direct base

compensation and operating expenses from management fees. FRE differs from income before taxes computed in accordance with GAAP as it adjusts for the items included in the calculation of ENI and excludes performance fees, performance fee compensation, investment income from our Consolidated Funds and certain other items.

Incentive Generating Assets Under Management

Incentive generating AUM (or “IGAUM”) refers to the AUM of our funds that are currently generating, on a realized or unrealized basis, performance fee revenue. It generally represents the NAV of our funds for which we are entitled to receive a performance fee, excluding capital committed by us and our professionals (which generally is not subject to a performance fee).

Incentive Eligible Assets Under Management

Incentive eligible AUM (or “IEAUM”) refers to the AUM of our funds that are eligible to produce performance fee revenue, regardless of whether or not they are currently generating performance fees. It generally represents the NAV plus uncalled equity of our funds for which we are entitled to receive a performance fee, excluding capital committed by us and our professionals (which generally is not subject to a performance fee).

Operations Management Group

In addition to our four segments, we have an Operations Management Group (the “OMG”) that consists of five independent, shared resource groups to support our reportable segments by providing infrastructure and administrative support in the areas of accounting/finance, operations/information technology, business development, legal/compliance and human resources. The OMG’s expenses are not allocated to our four reportable segments but we consider the cost structure of the OMG when evaluating our financial performance. This information constitutes non‐GAAP financial information within the meaning of Regulation G, as promulgated by the SEC. Our management uses this information to assess the performance of our reportable segments and our Operations Management Group, and we believe that this information enhances the ability of unitholders to analyze our performance.

Our Funds Our funds refers to the funds, alternative asset companies and other entities and accounts that are managed or co‐managed by Ares. It also includes funds managed by Ivy Hill Asset Management, L.P. (“IHAM”), a wholly owned portfolio company of ARCC, and a registered investment adviser.

Performance Related Earnings

Performance related earnings (or “PRE”) is a measure used to assess our investment performance. PRE differs from income (loss) before taxes computed in accordance with GAAP as it only includes performance fees, performance fee compensation and investment income earned from our Consolidated Funds and non‐consolidated Funds.

Permanent Capital Permanent capital refers to capital of funds that do not have redemption provisions or a requirement to return capital to investors upon exiting the investments made with such capital, except as required by applicable law, which funds currently consist of AresCapital Corporation ("ARCC"), Ares Commercial Real Estate Corporation ("ACRE"), Ares Dynamic Credit Allocation Fund, Inc. ("ARDC") and Ares Multi‐Strategy Credit Fund, Inc. ("ARMF"); such funds may be required, or elect, to return all or a portion of capital gains and investment income.

Senior Secured Loan Fund LLC

Senior Secured Loan Fund LLC (or ‘‘SSLP’’) is a program co‐managed by a subsidiary of Ares through which ARCC co‐invests with affiliates of General Electric Company.

Total Fee Revenue Total fee revenue refers to the sum of segment management fees and net performance fees.

AppendixAdditional Corporate Information

38


Organizational StructureAres Management Committee

Our 5 Co‐Founders and 6 other senior professionals across the firm

Board Directors / Co‐Founders Other Management Committee Members

Tony Ressler Chairman/CEO Bill Benjamin European Real Estate Lee Neibart U.S. Opportunistic RE*

Michael Arougheti President Kipp deVeer Global Direct Lending Todd Schuster Global RE Debt

David Kaplan Global Private Equity Greg Margolies Global Tradable Credit Michael Weiner Chief Legal Officer

John Kissick Firm‐Wide IC Member

Bennett Rosenthal Global Private Equity

Ares Investment Groups~345 Professionals in 4 Groups

Ares Private Equity Group~70 Professionals

Ares Tradable Credit Group~60 Professionals

Ares Direct Lending Group~135 Professionals

Ares Real Estate Group~80 Professionals

Ares Non‐Investment Groups~340 Professionals in 5 Groups

Accounting / Finance~100 Professionals

Operations / IT~100 Professionals

Bus. Development~50 Professionals

Legal & Compliance~50 Professionals

Human Resources~40 Professionals

Principal and Originating Offices

North America Los Angeles • New York • Chicago • Boston • Atlanta • Washington D.C. • Dallas • San Francisco

Europe / Middle East London • Paris • Frankfurt • Stockholm • Dubai

Asia / Australia Shanghai • Hong Kong • Chengdu • Sydney

• Mr. Neibart also serves as the Chairman of Ares Global Real EstateNote: As of May 2015.


Ares Management's Publicly Traded Entities

Ares Capital Corporation Ares Commercial Real Estate Corporation

Ares Dynamic Credit Allocation Fund

Ares Multi‐Strategy Credit Fund

Description:Business Development

Company(BDC)

Real Estate Investment Trust

(REIT)

Closed End Funds (CEFs)

Closed End Funds (CEFs)

InvestmentGroup: Direct Lending Real Estate Tradable Credit Tradable Credit

Ticker: ARCC(NASDAQ)

ACRE(NYSE)

ARDC (NYSE)

ARMF (NYSE)

AUM(1): $11 billion $2 billion $465 million $179 million

List Year: 2004 2012 2012 2013

1. Assets under management equals the sum of the NAV for such fund, the drawn and undrawn debt (at the fund‐level including amounts subject to restrictions) and uncalled committed capital. AUM for ARCC includes amounts invested by ARCC in the Senior Secured Loan Program (“SSLP”) (through which ARCC co‐invests with affiliates of General Electric Company) and Ivy Hill Asset Management, L.P. (“Ivy Hill”) (a wholly owned portfolio company of ARCC) but does not include the total AUM of SSLP and Ivy Hill. AUM amounts are as of March 31, 2015 and differences may arise due to rounding.

AppendixPerformance Appendix

41


Performance Notes to Slides 8, 16 and Slides 29-32Tradable Credit• Lipper Rankings reported in Lipper Marketplace Best Money Managers, March 31, 2015. 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; performancemust 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 theproduct 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 toan Active rather than Passive strategy.

• Performance for U.S. Banks Loans is represented by the U.S. Bank Loan Aggregate Composite ("U.S. Bank Loan Composite") which includes all actual, fully discretionary, fee‐paying, portfoliosthat that are benchmarked to the Credit Suisse Leveraged Loan Index and primarily invested in USD‐denominated banks loans. Portfolios may have limited allocations to high yield andstructured securities. Portfolios in the U.S. Bank Loan Composite have an emphasis on capital appreciation and income. For periods prior to January 1, 2010 the U.S. Bank Loan Compositeincluded 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 ofJanuary 1, 2010 the U.S. Bank Loan Composite no longer includes bank loan segments of multi‐asset class portfolios. The benchmark for the U.S. Bank Loan Composite is the Credit SuisseLeveraged Loan Index. The index is designed to mirror the investable universe of the US Dollar denominated leveraged loan market.

• Performance for U.S. High Yield is represented by the U.S. High Yield Composite (“U.S. High Yield Composite”), which includes all actual, fully discretionary, fee‐paying, separately managedportfolios that primarily invest in U.S. high yield fixed income securities and are benchmarked to the BofA Merrill Lynch US High Yield Master II Constrained Index. Portfolios in the U.S. HighYield Composite have an emphasis on capital appreciation and income. The benchmark for the U.S. High Yield Composite is the BofA Merrill Lynch US High Yield Master II Constrained Index,which tracks the performance of US Dollar denominated below investment grade corporate debt publicly issued in the US domestic market with a maximum issuer exposure of 2%. Theinception date of the U.S. High Yield Composite is May 2007.

• Performance for Credit Opportunities is represented by the Credit Opportunities Aggregate Composite ("Credit Opps Composite"), which includes all actual, fully discretionary, fee‐paying,portfolios that invest in U.S. bank loan, high yield, structured product, and equity securities with a total return focus. Portfolios in the Credit Opps Composite may utilize derivatives, such ascredit default swaps, for hedging and return enhancement. The index shown for comparison purposes is the HFRI Fund Weighted Composite Index. The index is an equally weighted compositeof over 2,200 hedge funds that is designed to reflect hedge fund industry performance. To be included in the index, a fund must have at least $50 million under management or have beenactively traded for at least twelve months. The inception date of the Credit Opportunities Aggregate Composite is December 2008.

• Performance for Special Situations is represented the Special Situations Composite (“Special Situations Composite”), which includes all closed‐end, fully discretionary, fee‐paying portfoliosthat invest in distressed debt, post‐reorganization equities, and other special situations instruments. Portfolios in the Special Situations Composite may invest in currency forwards to hedgecurrency risk and credit default swaps or options contracts to hedge industry or issuer risk. The index shown for comparison purposes is the Credit Suisse Event Driven Distressed Hedge FundIndex, which is a subset of the Credit Suisse Hedge Fund Index that measures the aggregate performance of event driven funds that focus on distressed situations. The inception date of theSpecial Situations Composite is June 2007.

• Benchmark returns are provided to represent the investment environment existing during the time period shown. The returns for the BofA Merrill Lynch US High Yield Master II ConstrainedIndex 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 forthe HFRI Fund Weighted Composite Index and the Credit Suisse Event Driven Distressed Hedge Fund Index are calculated using a time‐weighted rate of return and are net of all fees.

• Gross performance for the U.S. Bank Loan, U.S. High Yield, and Credit Opps Composites do not reflect the deduction of investment advisory fees or any other expenses that may be incurred inthe management of the account. Net returns for the U.S. Bank Loan and U.S. High Yield Composites are net of model investment advisory fees and are derived by subtracting 1/12th of thehighest applicable fee on a monthly basis from the gross returns. The representative management fees for the U.S. Bank Loan and U.S. High Yield Composites are 0.50% per annum. Net returnsfor the Credit Opps Composite are net of model investment advisory fees and are derived by subtracting 1/12th of the highest applicable asset‐based fee and the highest applicableperformance‐based fee on a monthly basis from the gross returns. The representative management fee for the Credit Opps Composite is 1.25% asset‐based fee per annum and a 15%performance‐based fee.

• Gross performance for the Special Situations Composite is an annualized gross internal rate of return (“IRR”) that is calculated using the combined capital draw dates from the fee‐payinglimited partners in each fund in the Special Situations Composite and a combined fund valuation as of the period end date. The inception date of the IRRs is June 29, 2007, which is the date ofthe first capital call. 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 doesnot reflect the deduction of management fees, carried interest, and operating and administrative expenses. The net IRR reflects the deduction of management fees, carried interest as if thecomposite 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 performancebased fees. Investment management fees are described in Part 2 of the adviser’s Form ADV. All returns are expressed in U.S. Dollars.


Performance Notes to Slides 8, 16 and Slides 29-32Direct Lending• Performance footnote for Ares Capital Corporation (“ARCC”): As of March 31, 2015. ARCC’s 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 $10.5 billion and total proceeds from such exited investments of approximately $12.9 billion.Internal rate of return 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 feesand 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 therepayment 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. These IRRresults are historical results relating to ARCC’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.

• Generated a 13% annualized total shareholder return since its 2004 IPO –outperforming S&P 500, bank loans and high yield by 500‐850bps; Source: SNL Financial. Total return as of March 31,2015 on security or index with dividends; assumes dividends are reinvested at the closing price of the security on the ex‐date of the dividend. ARCC stock price‐based total return is calculatedassuming dividends are reinvested at the end of day stock price on the relevant quarterly ex‐dividend dates. Total return is calculated assuming investors did not participate in ARCC’s rightsoffering issuance in March 2008. Bank loans and high yield performance compared to the Credit Suisse Leveraged Loan Index and the Merrill Lynch High Yield Master II Index, respectively. Timeperiod selected to include ARCC IPO in October 2004.

• Performance footnote for Ares Capital Europe Aggregate IRR: As of March 31, 2015. Represents the performance of all realized investments made by the Ares Direct Lending Group in Europe inits comingled middle market direct lending funds since inception in July 2007, including investments in the ESSLP, a joint venture to which Ares and GE Corporate Finance 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. IRR is shown on an asset level andrepresents the cash flows to and from investments and is gross of management fees and expenses related to investments as these fees and expenses are not allocable to specific investments.IRR includes realized returns and excludes the impact of fund‐level leverage where applicable. Investments are considered to be exited when the original investment objective has beenachieved 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 collectibleand, thus, a loss may have been realized. In addition, past performance is not indicative of future results, the achievement of which cannot be assured.

• Private Debt Investor selected Ares Capital Corporation (“ARCC”) as Business Development Company of the Year for 2014– Award based on an industry wide global survey across 37 categoriesconducted by Private Debt Investor. In the BDC of the Year category, ARCC was listed as one of the shortlisted firms (along with three additional short list competitors) as suggested by theeditorial board of PEI Media. Over 3,000 survey participants voted independently and could not vote for their own firm In addition, survey participants could nominate another firm not listed inthe category.

• Private Equity International selected Ares Management as Mid‐Cap Lender of the Year – North America for 2014 –Award based on an industry wide global survey across 60 categories conductedby Private Equity International. In the Mid‐Cap Lender of the Year in North America category, Ares Management was listed as one of three shortlisted firms as suggested by the editorial boardof PEI Media. Survey participants voted independently. In addition, survey participants could nominate another firm not listed in the category.

• Private Debt Investor selected Ares Management as the co‐winner of 2013 Unitranche Lender of the Year –EMEA; both in conjunction with the GE Capital joint venture. Private Debt Investor’sfirst annual awards were presented for 29 categories, covering the Americas; Europe; the Middle East and Africa; and Asia‐Pacific geographic regions. Winners were determined from more than1,400 votes cast by eligible voters in the private debt community. Respondents were forbidden from voting for their own firm.

• The 2013 and 2014 M&A Atlas Awards for Mid‐Market Lender of the Year‐Americas were awarded to Ares Capital Corporation (versus five and three additional finalists, respectively) by GlobalM&A Network. Selection criteria for lenders providing financing primarily to private equity sponsored transactions in the Mid‐market segment required a financing size ranging on averagebetween $100 million to $5 million. Following an open nominations process, winners were chosen independently from the finalist circle based on identifiable set of criteria for individual awardcategories including performance metrics.

• ARCC awarded CEO Ranking by Institutional Investor; Ares selected by votes of sell side analysts and money managers participating in Institutional Investor survey.• Largest BDC by both market capitalization and total assets is measured using market capitalization and total assets as of March 31, 2015.Private Equity• ACOF. As of March 31, 2015, gross IRRs were 25% for ACOF IV, 32% for ACOF III, 19% for ACOF II and 20% for ACOF I. Net IRRs as of March 31, 2015 are 12% for ACOF IV, 23% for ACOF III, 14% for

ACOF II and 14% for ACOF I. Gross IRR is before giving effect to taxes, management and incentive fees and other expenses. Net IRR is after giving effect to management and incentive fees andother expenses and exclude commitments by the General Partner and Schedule I investors who do not pay management fees. All IRRs presented are calculated on the basis of monthly inflowsand 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 valuesshown through the end of March 2015. The “Unrealized Value” includes Ares’ valuations of unrealized investments and accrued and unpaid cash interest as of March 31, 2015. Net IRRs do nottake into consideration the timing of contributions and distributions to and from the funds. There can be no assurance that unrealized investments will be realized at the valuations shown. Pastperformance is not indicative of future results.


Private Equity (Con’t)• U.S. Power & Energy Assets. As of March 31, 2015. U.S. Power & Energy Assets refer to the Early Funds and the USPF Funds, each as defined below. The Gross IRR for the U.S. Power & Energy

Assets is 15.8% 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 anyreinvestment of proceeds, and the unrealized value for all unrealized investments as of March 31, 2015. Gross IRR does not reflect the effect of management fees, carried interest, fund‐levelexpenses or, in some cases, project‐level expenses. The Net IRR for the U.S. Power & Energy Assets is 11.4% and is calculated based on aggregate monthly cash flows to/from each fund’slimited partners, plus each fund’s net asset value as of March 31, 2015. Net IRR reflects the return to limited partners after giving effect to management fees, carried interest and otherexpenses. 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. The USPF Fundsinclude 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 March 31, 2015, (i) Gross IRRs for the Early Funds, USPF, the USPF II Funds,USPF III and USPF IV are 18.2%, 29.4%, 8.0%, 8.6% and 18.4%, respectively, and (ii) Net IRRs for the Early Funds, USPF, the USPF II Funds, USPF III and USPF IV are 15.4%, 25.0%, 4.9%, 6.1% and16.8%, 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 EarlyFunds) 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. IRRs for the USPF II Funds,USPF III, and USPF IV should not be considered representative of final returns that may be achieved for such funds, which may be substantially lower.

• Reference is made to the 2013 Preqin Consistent Performers in Private Equity Report for a detailed description of the ranking methodology employed by Preqin in compiling the ranking. Theranking is based on a subset of buyout funds tracked by Preqin. Only funds for which Preqin has performance data and has assigned a quartile ranking have been considered for purpose of thisranking. As such, buyout funds with 2011, 2012 and 2013 vintage years have been excluded for purposes of this ranking. Additionally, only those fund managers that have raised at least threebuyout funds of a similar strategy have been considered by Preqin for purposes of the ranking.

• Private Equity International winner of the 2012 North American Special Situations/ Turnaround Firm of the Year. Private Equity International’s editorial board selected Ares to be on a short listof three nominees for the award. Ares was selected as the 2012 award winner through a voting process by readers of Private Equity International. The award may be based on subjectivecriteria and/or a limited candidate pool. Source: Private Equity International March 2013.

• The Power Finance & Risk’s awards recognized excellence and innovation in the power project finance industry. The goal of the Power Finance & Risk awards is for peers to single out others forvolume of activity, efficiency, leadership, and savvy in executed transactions. Each category is directly adjudicated by borrowers, investors, bankers and advisors active in the Americas in anonline poll. Power Finance & Risk launches an online poll of power company officials, investors, bankers, lawyers and consultants to determine who were the leading players and top deals inthe Americas. EIF was voted “Best Acquirer of Power Assets” as part of Power Finance & Risk’s 11th Annual Deals & Firms of the Year Awards.

Real Estate• As of March 31, 2015. Performance returns, including gross IRRs and net IRRs for the aggregate of the U.S. Equity Value‐Add and the U.S. Equity Opportunistic real estate strategies, as well as

the aggregate of the European Equity Value‐Add and the European Equity Opportunistic real estate strategies, are shown for illustrative purposes only and are based on actual (or realized) cashactivities through March 31, 2015 and projected (or unrealized, also as of March 31, 2015) cash activities based on management’s business plans for the periods thereafter.

• Gross IRR is an internal rate of return based on aggregate quarterly cash flows with respect to each investment (or portfolio of investments, as applicable), including cash flows attributable toany reinvestment of proceeds, financing and/or refinancing. Gross figures do not reflect the effect of the relevant management fee, carried interest and other expenses, which may besubstantial. The net IRR is generally calculated based on aggregate monthly cash flows to/from each fund’s limited partners, including actual cash flow activities through March 31, 2015 andprojected cash flow activities for the periods thereafter, and generally reflects the return to limited partners after giving effect to management fees, carried interest and other expenses. As therealized and unrealized performance returns are based in part on projected cash activities, actual returns may differ materially.

• The realized and unrealized net IRR as of the period indicated is 10.5% in the aggregate for the U.S. Value‐Add and U.S. Opportunistic strategies and include investments in the followinginvestment vehicles: Value Enhancement Fund I, L.P. (“VEF I,” 1993 vintage), Value Enhancement Fund II, L.L.C. (“VEF II,” 1996 vintage), Value Enhancement Fund III, L.L.C. (“VEF III,” 1998vintage), Value Enhancement Fund IV, L.P. (“VEF IV,” 1999 vintage), Value Enhancement Fund V, L.P. (“VEF V,” 2001 vintage), Value Enhancement Fund VI, L.P. (“VEF VI,” 2005 vintage), Ares USReal Estate Fund VII, L.P. ("US Fund VII," f/k/a Apollo Value Enhancement Fund VII, L.P. or "VEF VII," 2008 vintage), Ares US Real Estate Fund VII 892, L.P. ("US Fund VII 892," f/k/a Apollo ValueEnhancement Fund VII 892, L.P. or "VEF VII 892," 2008 vintage), Apollo Real Estate Investment Fund I, L.P. (“AREIF,” vintage 1993), Apollo Real Estate Investment Fund II, L.P. (“AREIF II,” vintage1996), Apollo Real Estate Investment Fund III, L.P. (“AREIF III,” vintage 1998), Apollo Real Estate Investment Fund IV, L.P. (“AREIF IV,” vintage 2000), Apollo Real Estate Investment Fund V, L.P.(“AREIF V,” vintage 2006) and Ares US Real Estate Opportunity Fund, L.P. (“AREOF,” f/k/a Ares US Real Estate Opportunity Fund VI, L.P. and prior to that, AREA Real Estate Opportunity Fund VI,L.P., vintage 2012). 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 IIIand IV were permitted to invest up to 30% of their aggregate commitments to deals outside of the U.S. Investments outside of the U.S. and their related cash flow activities are included in therealized and unrealized net IRRs of the U.S. Equity Value‐Add and U.S. Opportunistic strategies.

Performance Notes to Slides 8, 16 and Slides 29-32


Real Estate (Con’t)• The realized and unrealized net IRR as of the period indicated is 10.8% in the aggregate for the European Equity Value‐Add and Opportunistic strategies and include investments in the following

investment vehicles: (a) European investments only in Apollo Real Estate Investment Fund I, L.P. (“AREIF,” vintage 1993), Apollo Real Estate Investment Fund II, L.P. (“AREIF II,” vintage 1996),Apollo Real Estate Investment Fund III, L.P. (“AREIF III,” vintage 1997) and Apollo Real Estate Investment Fund, IV, L.P. (“AREIF IV,” vintage 1999); and (b) all European Opportunistic investmentsin Ares European Real Estate Fund I, L.P. (presently and formerly, “EU I”), f/k/a Apollo International Real Estate Fund, L.P. (vintage 2001), Ares European Real Estate Fund II, L.P. (presently andformerly, “EU II”), f/k/a Apollo European Real Estate Fund II, L.P. (vintage 2005), Ares European Real Estate Fund III, L.P. (presently and formerly, “EU III”), f/k/a Apollo European Real Estate FundIII, L.P. (vintage 2008), Ares European Real Estate Fund IV, L.P. (presently and formerly, “EF IV”), and European Value Add investments in AREA European Property Enhancement Program, L.P.(“EPEP I”). With respect to AREIF I‐IV, because the European investment activities in those funds were comingled with a broader global real estate portfolio, the net IRR contribution is based onthe aggregate periodic cash flows of each European investment reduced by a proportionate share of management fees, carried interest and other expenses; as such, the net IRR may not reflectthe returns a limited partner would have experienced had it been possible to invest exclusively in the European portion of those funds.

• ACRE Unleveraged Effective Yield represents the dollar weighted average of the unlevered effective yield of the Ares Commercial Real Estate Corporation (“ACRE”) principal lending portfoliomeasured at the end of the twelve quarterly periods since inception, April 2012, through March 31, 2015. Unleveraged Effective Yield is the compounded effective rate of return that would beearned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premium or discount) and assumes no dispositions, early prepaymentsor defaults. Unleveraged Effective Yield for each loan is calculated based on LIBOR as of the end of the relevant quarter or the LIBOR floor, as applicable. Each quarterly Unleveraged EffectiveYield is calculated based on the average of Unleveraged Effective Yield of all loans held by ACRE as of the end of the relevant quarter as weighted by the Outstanding Principal balance of eachloan. Unleveraged Effective Yield is shown for illustrative purposes only to provide information on the performance of the ACRE portfolio of loans. Unleveraged Effective Yield does not takeinto consideration the impact of leverage utilized by ACRE, fees, expenses and other costs incurred by ACRE or shareholders of the company, which are expected to be significant, and does notrepresent net returns to investors of ACRE which will depend on a variety of factors including, but not limited to, the market value of ACRE’s common stock.

• Standard & Poor’s servicing ratings (“Ratings”) apply to (1) Commercial Loan Servicer (March 2015): ACRE Capital, LLC, a subsidiary of Ares Commercial Real Estate Corporation (NYSE: ACRE); and(2) Commercial Special Servicer (as of June 2013): Ares Commercial Real Estate Servicer, LLC, a subsidiary of Ares Commercial Real Estate Management, LLC, the external manager for ACRE.

• 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 AresManagement LLC’s acquisition of AREA in July 2013. The PERE 50 measures equity raised between January 1, 2010 and the end of March 2015 for direct real estate investment through closed‐ended, commingled real estate funds and co‐investment vehicles that sit alongside those funds. The vehicles must give the GP discretion over the capital, meaning club funds, separate accountsand joint ventures are excluded from the ranking. Also excluded are funds with strategies other than value‐added and opportunistic, such as core and core‐plus, as well as those not focused ondirect real estate, like fund of funds and debt funds, and funds where the primary strategy is not real estate focused, such as general private equity.

Performance Notes to Slides 8, 16 and Slides 29-32

Morgan Stanley Financials Conference

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