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UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington,
DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section
13 or 15(d) of the
Securities Exchange
Act of 1934
Date of Report (Date of earliest event reported)
June 12, 2024
ARES
MANAGEMENT CORPORATION
(Exact name of registrant as specified in its
charter)
Delaware |
|
001-36429 |
|
80-0962035 |
(State or Other Jurisdiction
of Incorporation) |
|
(Commission
File Number) |
|
(IRS Employer
Identification No.) |
2000
Avenue of the Stars, 12th
Floor, Los
Angeles, CA
90067 |
(Address
of principal executive office) (Zip Code) |
(310)
201-4100
(Registrant’s telephone number, including
area code)
N/A
(Former name, former address and former fiscal
year, if changed since last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see
General Instruction A.2. below):
| ¨ | Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title
of each class |
Trading
Symbol(s) |
Name
of each exchange on which registered |
Class A common stock, par value $0.01 per share |
ARES |
New York Stock Exchange |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 8.01 Other Events.
On June 12, 2024, Ares Management Corporation
(the “Company”), Ares Holdings L.P and Ares Holdco LLC entered into an underwriting agreement (the “Underwriting Agreement”)
with Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Wells Fargo
Securities, LLC, as the representatives of the underwriters (the “Underwriters”), pursuant to which the Company agreed to
issue and sell 2,650,000 shares of Class A common stock, par value $0.01 per share (the “Class A common stock”)
(the “Offering”). Pursuant to the Underwriting Agreement, the Company granted the Underwriters a 30-day option to purchase
up to an additional 397,500 shares of Class A common stock. The Offering closed on June 14, 2024.
The Underwriting Agreement contains certain customary
representations, warranties and agreements by the Company, conditions to closing, indemnification rights and obligations of the parties
and termination provisions. Pursuant to the Underwriting Agreement, the Company has agreed, subject to certain exceptions, not to sell
or transfer any shares of Class A common stock or any securities convertible into or exercisable or exchangeable for Class A
common stock for 45 days after June 12, 2024 without first obtaining the written consent of Morgan Stanley & Co. LLC and
BofA Securities, Inc. The foregoing summary of the Underwriting Agreement does not purport to be complete and is qualified in its
entirety by reference to the Underwriting Agreement, which is filed as Exhibit 1.1 to this Current Report on Form 8-K and is
incorporated herein by reference.
The Offering was made pursuant to a shelf registration
statement on Form S-3 filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2023 (Registration
No. 333-270053), a base prospectus, dated February 27, 2023, included as part of the registration statement and a prospectus
supplement, dated June 12, 2024 and filed with the SEC on June 13, 2024.
Forward-Looking Statements
This
Current Report on Form 8-K contains forward-looking statements within the meaning of the federal securities laws. You can identify
these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,”
“potential,” “continues,” “may,” “will,” “should,” “seeks,”
“approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,”
“foresees” or negative versions of those words, other comparable words or other statements that do not relate to historical
or factual matters. . The forward-looking statements are based on the Company’s beliefs,
assumptions and expectations of our future performance, taking into account all information currently available to the Company. Such forward-looking
statements are subject to various risks and uncertainties and assumptions relating to the Company’s operations, financial results,
financial condition, business prospects, growth strategy and liquidity. Some of these factors are described in the Annual Report on Form 10-K
for the year ended December 31, 2023, under the headings “Item 7. Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and in the Quarterly Report on Form 10-Q filed with the SEC on May 9, 2024, under the heading
“Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These factors should
not be construed as exhaustive and should be read in conjunction with the risk factors and other cautionary statements that are included
in this report and in our other periodic filings. If one or more of these or other risks or uncertainties materialize, or if our underlying
assumptions prove to be incorrect, our actual results may vary materially from those indicated in these forward-looking statements. New
risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company.
Therefore, you should not place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the
date on which it is made. The Company does not undertake any obligation to update or review any
forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number |
|
Description |
1.1 |
|
Underwriting
Agreement, dated June 12, 2024, among Ares Management Corporation, Ares Holdings L.P., Ares Holdco LLC and Morgan Stanley &
Co. LLC, BofA Securities, Inc., J.P Morgan Securities LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC. |
5.1 |
|
Opinion
of Kirkland & Ellis LLP |
23.1 |
|
Consent
of Kirkland & Ellis LLP (included in Exhibit 5.1) |
104 |
|
Cover
Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
ARES MANAGEMENT CORPORATION |
|
|
|
Dated: June 14, 2024 |
|
|
|
By: |
/s/ Jarrod Phillips |
|
Name: |
Jarrod Phillips |
|
Title: |
Chief Financial Officer
(Principal Financial & Accounting Officer) |
Exhibit 1.1
Execution Version
ARES MANAGEMENT CORPORATION
(Delaware corporation)
2,650,000 Shares of Class A Common Stock
Underwriting
Agreement
June 12, 2024
Morgan Stanley & Co. LLC
1585 Broadway
New York, New York 10036
BofA Securities, Inc.
One Bryant Park
New York, New York 10036
J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
RBC Capital Markets, LLC
Brookfield Place
200 Vesey Street, 10th Floor
New York, New York 10281
Wells Fargo Securities, LLC
500 West 33rd Street
New York, New York 10001
As representatives (“you” or the “Representatives”)
of the several Underwriters listed in Schedule 1 hereto
Ladies and Gentlemen:
Ares Management Corporation, a Delaware corporation
(the “Company”), proposes to issue and sell to the several underwriters listed in Schedule 1 hereto (the “Underwriters”),
for whom you are acting as representatives (the “Representatives”), an aggregate of 2,650,000 shares (the “Underwritten
Shares”) of the Company’s Class A common stock, par value $0.01 per share (the “Common Shares”). In addition,
the Company proposes to issue and sell, at the option of the Underwriters, up to an additional 397,500 Common Shares (the “Option
Shares”). The Underwritten Shares and the Option Shares are herein referred to as the “Shares.” To the extent there
are no additional Underwriters listed on Schedule 1 other than you, the term Representatives as used herein shall mean you, as the Underwriters,
and the terms Representatives or Underwriters shall mean either the singular or plural as the context requires.
In connection with the issuance of the Shares,
the Company intends to contribute the net proceeds from the sale of such Shares to the Ares Operating Group Partnerships (defined below).
In consideration of the Company’s contribution, each Ares Operating Group Partnership will issue to its respective general partner,
an indirect subsidiary of the Company, partnership units in the respective Ares Operating Group Partnership (the “Offering AOG
Units”).
The Company hereby confirms its agreement with
the several Underwriters concerning the purchase and sale of the Shares pursuant to this underwriting agreement (this “Agreement”),
as follows:
1. Registration
Statement. The Company has prepared and filed with the Securities and Exchange Commission (the “Commission”) under the
Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder (collectively, the “Securities
Act”), an automatic shelf registration statement, as defined in Rule 405 under the Securities Act, on Form S-3 (File
No. 333-270053), including a related base prospectus, relating to certain securities, including the Shares. Such registration statement,
and any post-effective amendment thereto, became effective upon filing. Such registration statement, including the information, if any,
deemed pursuant to Rule 430B under the Securities Act to be part of the registration statement at the time of its effectiveness
(“Rule 430 Information”), is referred to herein as the “Registration Statement”; and as used herein, the
term “Base Prospectus” means the base prospectus included in the Registration Statement (and any amendments thereto) at the
time of effectiveness, the term “Preliminary Prospectus” means any preliminary prospectus relating to the Shares filed with
the Commission pursuant to Rule 424(b) under the Securities Act, including the Base Prospectus and any preliminary prospectus
supplement thereto relating to the Shares that is used prior to the filing of the Prospectus, and the term “Prospectus” means
the final prospectus relating to the Shares filed with the Commission pursuant to Rule 424(b) under the Securities Act, including
the Base Prospectus and any final prospectus supplement thereto relating to the Shares. If the Company has filed an abbreviated registration
statement pursuant to Rule 462(b) under the Securities Act (the “Rule 462 Registration Statement”), then any
reference herein to the term “Registration Statement” shall be deemed to include such Rule 462 Registration Statement.
Any reference in this Agreement to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer
to and include the documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act, as of the
effective date of the Registration Statement or the date of such Preliminary Prospectus or the Prospectus, as the case may be, and any
reference to “amend,” “amendment” or “supplement” with respect to the Registration Statement, any
Preliminary Prospectus or the Prospectus shall be deemed to refer to and include any documents filed after such date under the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder (collectively, the “Exchange
Act”) that are deemed to be incorporated by reference therein. Capitalized terms used but not defined herein shall have the meanings
given to such terms in the Registration Statement and the Prospectus.
At or prior to the Applicable Time (as defined
below), the Company had prepared the following information (collectively with the pricing information set forth on Annex A, the “Pricing
Disclosure Package”): a Preliminary Prospectus dated June 12, 2024 and each “free-writing prospectus” (as defined
pursuant to Rule 405 under the Securities Act) listed on Annex A hereto.
“Applicable Time” means 7:45 P.M.,
New York City time, on June 12, 2024.
2. Purchase
of the Shares by the Underwriters.
(a) The
Company agrees to issue and sell the Underwritten Shares to the several Underwriters as provided in this Agreement, and each Underwriter,
on the basis of the representations, warranties and agreements set forth herein and subject to the conditions set forth herein, agrees,
severally and not jointly, to purchase at a price per Share of $134.07 (the “Purchase Price”) from the Company the respective
number of Underwritten Shares set forth opposite such Underwriter’s name in Schedule 1 hereto.
In addition, the Company agrees to issue and sell
the Option Shares to the several Underwriters as provided in this Agreement, and the Underwriters, on the basis of the representations,
warranties and agreements set forth herein and subject to the conditions set forth herein, shall have the option to purchase, severally
and not jointly, from the Company the Option Shares at the Purchase Price less an amount per Share equal to any dividends or distributions
declared by the Company and payable on the Underwritten Shares but not payable on the Option Shares.
If any Option Shares are to be purchased, the
number of Option Shares to be purchased by each Underwriter shall be the number of Option Shares which bears the same ratio to the aggregate
number of Option Shares being purchased as the number of Underwritten Shares set forth opposite the name of such Underwriter in Schedule
1 hereto (or such number increased as set forth in Section 10 hereof) bears to the aggregate number of Underwritten Shares being
purchased from the Company by the several Underwriters, subject, however, to such adjustments to eliminate any fractional Shares as the
Representatives in their sole discretion shall make.
The Underwriters may exercise the option to purchase
Option Shares at any time in whole, or from time to time in part, on or before the thirtieth day following the date of the Prospectus,
by written notice from the Representatives to the Company. Such notice shall set forth the aggregate number of Option Shares as to which
the option is being exercised and the date and time when the Option Shares are to be delivered and paid for, which shall not be earlier
than the Closing Date (as hereinafter defined) nor later than the tenth full business day (as hereinafter defined) after the date of
such notice (unless such time and date are postponed in accordance with the provisions of Section 10 hereof). Any such notice shall
be given at least two business days prior to the date and time of delivery specified therein.
(b) The
Company understands that the Underwriters intend to make a public offering of the Shares as soon after the effectiveness of this Agreement
as in the judgment of the Representatives is advisable, and initially to offer the Shares on the terms set forth in the Prospectus. The
Company acknowledges and agrees that the Underwriters may offer and sell Shares to or through any affiliate of an Underwriter and that
any such affiliate may offer and sell Shares purchased by it to or through the Underwriter.
(c) Payment
for the Shares shall be made by wire transfer in immediately available funds to the accounts specified by the Company, to the Representatives
in the case of the Underwritten Shares, at the offices of Latham & Watkins LLP, 10250 Constellation Blvd., Suite 1100,
Los Angeles, California 90067, at 10:00 A.M., New York City time, on June 14, 2024, or at such other time or place on the same or
such other date, not later than the fifth business day thereafter, as the Representatives, the Company may agree upon in writing or,
in the case of the Option Shares, on the date and at the time and place specified by the Representatives in the written notice of the
Underwriters’ election to purchase such Option Shares. The time and date of such payment for the Underwritten Shares is referred
to herein as the “Closing Date” and the time and date for such payment for the Option Shares, if other than the Closing Date,
is herein referred to as the “Additional Closing Date.”
(d) Payment
for the Shares to be purchased on the Closing Date or the Additional Closing Date, as the case may be, shall be made against delivery
to the Representatives for the respective accounts of the several Underwriters of the Shares to be purchased on either such date, with
any transfer taxes payable in connection with the sale of such Shares duly paid by the Company. Delivery of the Shares shall be made
through the facilities of The Depository Trust Company (“DTC”) unless the Representatives shall otherwise instruct and the
Shares shall be registered in such names and in such denominations as the Representatives shall request.
(e) The
Company acknowledges and agrees that the Underwriters are acting solely in the capacity of an arm’s length contractual counterparty
to the Company with respect to the offering of Shares contemplated hereby (including in connection with determining the terms of the
offering) and not as a financial advisor or a fiduciary to, or an agent of, the Company or any other person (irrespective of whether
such Underwriter has advised or is currently advising the Company on other matters). Additionally, none of the Representatives nor any
other Underwriter is advising the Company or any other person as to any legal, tax, investment, accounting, regulatory or any other matters
in any jurisdiction with respect to the offering of the Shares contemplated hereby (irrespective of whether such Underwriter has advised
or is currently advising the Company on other matters). The Company agrees that, in connection with the purchase and sale of the Shares
pursuant to the Agreement or the process leading thereto, none of the Representatives nor any of the Underwriters, or any of them, has
advised the Company or any other person as to any legal, tax, investment, accounting, regulatory or any other matters in any jurisdiction
or owes a fiduciary or similar duty to the Company. The Underwriters and their respective affiliates may be engaged in a broad range
of transactions directly or indirectly involving the Company, and may in some cases have interests that differ from or conflict with
those of the Company. The Company hereby consents to each Underwriter acting in the capacities described in the preceding sentence, and
the parties to this Agreement acknowledge that any such transaction is a separate transaction from the sale of the Shares contemplated
hereby and that no Underwriter acting in any such capacity owes any obligation or duty to any other party hereto with respect to or arising
from its acting in such capacity, except to the extent set forth in any prior separate agreement relating to such other transaction.
The Company shall consult with its own advisors concerning such matters and shall be responsible for making its own independent investigation
and appraisal of the transactions contemplated hereby, and the Underwriters shall have no responsibility or liability to the Company
with respect thereto. Any review by the Underwriters of the Company, the transactions contemplated hereby or other matters relating to
such transactions will be performed solely for the benefit of the Underwriters and shall not be on behalf of the Company.
3. Representations
and Warranties of the Ares Parties. The Company, Ares Holdings L.P., a Delaware limited partnership (the “Ares Operating Group
Partnership”), and Ares Holdco LLC, a Delaware limited liability company (the “Ares Operating Group LLC” and, together
with the Company and the Ares Operating Group Partnership, collectively, the “Ares Parties”), jointly and severally represent
and warrant to each Underwriter that:
(a) Preliminary
Prospectus. No order preventing or suspending the use of any Preliminary Prospectus has been issued by the Commission, and each Preliminary
Prospectus included in the Pricing Disclosure Package, at the time of filing thereof, complied in all material respects with the Securities
Act, and no Preliminary Prospectus included in the Pricing Disclosure Package, at the time of filing thereof, contained any untrue statement
of a material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that no Ares Party makes any representation or warranty with respect to any
statements or omissions made in reliance upon and in conformity with information relating to any Underwriter furnished to the Company
in writing by such Underwriter through the Representatives expressly for use in any Preliminary Prospectus, it being understood and agreed
that the only such information furnished by any Underwriter consists of the information described as such in Section 7(b) hereof.
(b) Pricing
Disclosure Package. The Pricing Disclosure Package as of the Applicable Time did not, and as of the Closing Date and as of the Additional
Closing Date, as the case may be, will not, contain any untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided
that no Ares Party makes any representation or warranty with respect to any statements or omissions made in reliance upon and in conformity
with information relating to any Underwriter furnished to the Company in writing by such Underwriter through the Representatives expressly
for use in the Preliminary Prospectus, the Pricing Disclosure Package or the Prospectus, it being understood and agreed that the only
such information furnished by any Underwriter consists of the information described as such in Section 7(b) hereof.
(c) Issuer
Free Writing Prospectus. Other than the Registration Statement, the Preliminary Prospectus and the Prospectus, no Ares Party (including
its agents and representatives, other than the Underwriters in their capacity as such) has prepared, used, authorized, approved or referred
to and no Ares Party will prepare, use, authorize, approve or refer to any “written communication” (as defined in Rule 405
under the Securities Act) that constitutes an offer to sell or solicitation of an offer to buy the Shares (each such communication by
any such Ares Party or its agents and representatives (other than a communication referred to in clause (i) below) an “Issuer
Free Writing Prospectus”) other than (i) any document not constituting a prospectus pursuant to Section 2(a)(10)(a) of
the Securities Act or Rule 134 under the Securities Act or (ii) the documents listed on Annex A hereto, each electronic road
show and any other written communications, in each case, approved in writing in advance by the Representatives. Each such Issuer Free
Writing Prospectus complied in all material respects with the Securities Act, has been or will be (within the time period specified in
Rule 433) filed in accordance with the Securities Act (to the extent required thereby) and, when taken together with the Preliminary
Prospectus accompanying, or delivered prior to delivery of, each Issuer Free Writing Prospectus listed on Annex A hereto, did not, and
as of the Closing Date and as of the Additional Closing Date, as the case may be, will not, contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided that no Ares Party makes any representation or warranty with respect to any statements
or omissions made in each such Issuer Free Writing Prospectus or Preliminary Prospectus in reliance upon and in conformity with information
relating to any Underwriter furnished to the Company in writing by such Underwriter through the Representatives expressly for use in
such Issuer Free Writing Prospectus or Preliminary Prospectus, it being understood and agreed that the only such information furnished
by any Underwriter consists of the information described as such in Section 7(b) hereof.
(d) Registration
Statement and Prospectus. The Registration Statement is an “automatic shelf registration statement” as defined under
Rule 405 of the Securities Act that has been filed with the Commission not earlier than three years prior to the date hereof; and
no notice of objection of the Commission to the use of such registration statement or any post-effective amendment thereto pursuant to
Rule 401(g)(2) under the Securities Act has been received by the Company. No order suspending the effectiveness of the Registration
Statement has been issued by the Commission, and no proceeding for that purpose or pursuant to Section 8A of the Securities Act
against the Company or related to the offering of the Shares pursuant to this Agreement has been initiated or, to the knowledge of the
Ares Parties, threatened by the Commission; as of the applicable effective date of the Registration Statement and any post-effective
amendment thereto, the Registration Statement and any such post-effective amendment complied and will comply in all material respects
with the Securities Act, and did not and will not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein not misleading; and as of the date of the Prospectus and any
amendment or supplement thereto and as of the Closing Date and as of the Additional Closing Date, as the case may be, the Prospectus
will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading; provided that no Ares Party makes any representation
or warranty with respect to any statements or omissions made in reliance upon and in conformity with information relating to any Underwriter
furnished to the Company in writing by such Underwriter through the Representatives expressly for use in the Registration Statement and
the Prospectus and any amendment or supplement thereto, it being understood and agreed that the only such information furnished by any
Underwriter consists of the information described as such in Section 7(b) hereof.
(e) Incorporated
Documents. The documents incorporated by reference in the Registration Statement, the Prospectus and the Pricing Disclosure Package,
when filed with the Commission, conformed or will conform, as the case may be, in all material respects with the requirements of the
Exchange Act and the rules and regulations of the Commission thereunder and did not and will not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading.
(f) Financial
Statements. The historical financial statements of the Company and its consolidated subsidiaries and the related notes thereto included
or incorporated by reference in the Registration Statement, the Pricing Disclosure Package and the Prospectus comply in all material
respects with the applicable requirements of the Securities Act and the Exchange Act, as applicable, and present fairly in all material
respects the financial position of the Company and its consolidated subsidiaries as of the dates indicated and the results of their operations
and the changes in their cash flows for the periods specified; such financial statements have been prepared in conformity with generally
accepted accounting principles in the United States (“GAAP”) applied on a consistent basis throughout the periods covered
thereby; and the other financial information included or incorporated by reference in the Registration Statement, the Pricing Disclosure
Package and the Prospectus has been derived from the accounting records of the Company and its consolidated subsidiaries and presents
fairly in all material respects the information shown therein and, each as described in the Registration Statement, the Pricing Disclosure
Package and the Prospectus, has been compiled on a basis consistent in all material respects with that of the audited financial statements
included or incorporated by reference in the Registration Statement, the Pricing Disclosure Package and the Prospectus. No other financial
statements or supporting schedules are required to be included or incorporated by reference in the Registration Statement, the Pricing
Disclosure Package or the Prospectus. All “non-GAAP financial measures” (as such term is defined in the rules and regulations
of the Commission) included or incorporated by reference in the Registration Statement, the Pricing Disclosure Package and the Prospectus
comply with Regulation G under the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the extent applicable. The
interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement, the Pricing
Disclosure Package and the Prospectus fairly presents the information called for in all material respects and has been prepared in all
material respects in accordance with the Commission’s rules and guidelines applicable thereto.
(g) No
Material Adverse Change. Since the date of the most recent financial statements of the Company included or incorporated by reference
in each of the Registration Statement, the Pricing Disclosure Package and the Prospectus (i) there has not been any material change
in the capital stock (which, as used herein includes partnership interests, member interests or other equity interests, as applicable)
or any change in the consolidated short-term debt or long-term debt of the Company or any of its Subsidiaries (such Subsidiaries collectively
with the Company, the “Ares Entities”) or any dividend or distribution of any kind declared, set aside for payment, paid
or made by the Company on any capital stock, or any material adverse change, or any development involving a prospective material adverse
change, in or affecting the business, properties, management, financial position, shareholders’ equity, partners’ or members’
capital, results of operations or business prospects of the Ares Entities taken as a whole (except for, in each case, (A) subsequent
issuances or capital stock repurchases or cancellations, if any, (i) described in the Registration Statement, the Pricing Disclosure
Package and the Prospectus, (ii) pursuant to the Ares Management Corporation 2014 Equity Incentive Plan and the Ares Management
Corporation 2023 Equity Incentive Plan (collectively, the “Ares Equity Incentive Plans”), (iii) upon exercise of outstanding
options issued pursuant to the Ares Equity Incentive Plans (iv) in connection with or as a result of exchanges of Ares Operating
Group Units (as defined in the Certificate of Incorporation of the Company) for Common Shares or (v) any issuances or cancellations
by the Company of shares of Class C common stock, par value $0.01 per share (“Class C Common Stock”), (B) any
tax distributions made by the Company’s Subsidiaries in the ordinary course of business and distributions in respect of Ares Operating
Group Units, (C) ordinary course drawdowns or repayments on the Credit Facility (as defined in the Prospectus), (D) any issuance
of Common Shares in connection with the Company’s anticipated acquisition of Crescent Point Capital or (E) other ordinary
course short term indebtedness of any Ares Entity), (ii) no Ares Entity has entered into any transaction or agreement (whether or
not in the ordinary course of business) that is material to the Ares Entities taken as a whole or incurred any liability or obligation,
direct or contingent, that is material to the Ares Entities taken as a whole and (iii) no Ares Entity has sustained any loss or
interference with its business that is material to the Ares Entities taken as a whole and that is either from fire, explosion, flood
or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any
court or arbitrator or governmental or regulatory authority, except in each case as otherwise disclosed in each of the Registration Statement,
the Pricing Disclosure Package and the Prospectus.
(h) Organization
and Good Standing. The Ares Entities and each of the Ares Funds (as defined below) have been duly organized and are validly existing
and in good standing (to the extent such concept exists in the jurisdiction in question) under the laws of their respective jurisdictions
of organization, are duly qualified to do business and are in good standing in each jurisdiction in which their respective ownership
or lease of property or the conduct of their respective businesses requires such qualification, and have all power and authority necessary
to own or hold their respective properties and to conduct the businesses in which they are engaged, except where the failure to be so
qualified or in good standing or have such power or authority would not, individually or in the aggregate, reasonably be expected to
have a material adverse effect on the business, properties, management, financial position, partners’ or members’ capital,
shareholders’ equity, results of operations or business prospects of the Ares Entities taken as a whole or on the performance by
the Ares Parties of their obligations under this Agreement (a “Material Adverse Effect”). The Company does not own or control,
directly or indirectly, any corporation, association or other entity other than (i) the Subsidiaries listed in Exhibit 21.1
to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, (ii) subsidiaries omitted
from Exhibit 21.1 that, if considered in the aggregate as a single subsidiary, would not constitute “significant subsidiaries”
of the Company as defined in Rule 1-02(w) of Regulation S-X or (iii) the Ares Funds or their portfolio companies,
special purpose entities formed to acquire any such portfolio companies or investments, including collateralized loan obligations. As
used herein, “Subsidiaries” means the direct and indirect subsidiaries of the Company but not, for the avoidance of doubt,
the Ares Funds or their portfolio companies, special purpose entities formed to acquire any such portfolio companies or investments,
including collateralized loan obligations. “Ares Funds” means, collectively, all Funds (excluding their portfolio companies
and investments and all special purpose entities formed to acquire any such portfolio companies and investments, including collateralized
loan obligations) (i) sponsored or promoted by any Ares Entity, (ii) for which any Ares Entity acts as a general partner or
managing member (or in a similar capacity) or (iii) for which any Ares Entity acts as an investment adviser or investment manager;
and “Fund” means any collective investment vehicle (whether open-ended or closed-ended) including, without limitation, an
investment company, a general or limited partnership, a trust and any other business entity or investment vehicle organized in any jurisdiction
that provides for management fees or “carried interest” (or other similar profits allocations) to be borne by investors therein;
provided that any investment vehicle for which any Ares Entity would not be deemed an affiliate shall not be included within the
definition of “Fund.”
(i) Capitalization
of the Company. (i) The authorized, issued and outstanding shares of capital stock of the Company as of March 31, 2024
were as set forth in the line item “Stockholders’ Equity” in the Company’s condensed consolidated statement of
financial condition as of March 31, 2024 appearing in the Company’s Quarterly Report on Form 10-Q for the three months
ended March 31, 2024, and, since March 31, 2024, the Company has not issued, repurchased or cancelled any capital stock in
the Company (other than subsequent issuances or capital stock repurchases or cancellations, if any, (i) described in the Registration
Statement, the Pricing Disclosure Package and the Prospectus, (ii) pursuant to the Ares Equity Incentive Plans, (iii) upon
exercise of outstanding options issued pursuant to the Ares Equity Incentive Plans, (iv) in connection with or as a result of exchanges
of Ares Operating Group Units for Common Shares or (v) any issuances or cancellations by the Company of shares of Class C Common
Stock). All of the outstanding shares of capital stock of the Company are not subject to any pre-emptive or similar rights. Except as
otherwise disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, there are no restrictions upon
the voting or transfer of any shares of capital stock of the Company (including the Shares) pursuant to any agreement or instrument to
which any of the Ares Entities is a party or by which any of such entities may be bound.
(j) Capitalization
of Subsidiaries. Except in each case as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus
or as would not reasonably be expected to have a Material Adverse Effect, all of the outstanding shares of capital stock, partnership
interests, member interests or other equity interests of each Subsidiary that are owned directly or indirectly by the Company (i) have
been duly and validly authorized and issued and are fully paid (in the case of any Subsidiaries that are organized as limited liability
companies, limited partnerships or other business entities, to the extent required under the applicable limited liability company, limited
partnership or other organizational agreement) and non-assessable (except in the case of interests held by general partners or similar
entities under the applicable laws of other jurisdictions, in the case of any Subsidiaries that are organized as limited liability companies,
as such non-assessability may be affected by Section 18-607 or Section 18-804 of the Delaware Limited Liability Company Act
(the “Delaware LLC Act”) or similar provisions under the applicable laws of other jurisdictions or the applicable limited
liability company agreement and, in the case of any Subsidiaries that are organized as limited partnerships, as such non-assessability
may be affected by Section 17-607 or Section 17-804 of the Delaware Revised Uniform Limited Partnership Act (the “Delaware
RULPA”) or similar provisions under the applicable laws of other jurisdictions or the applicable limited partnership agreement)
and (ii) are owned, directly or indirectly by the Company, free and clear of any lien, charge, encumbrance, security interest or
any other claim of any third party.
(k) Capitalization
of the Ares Operating Group Partnership. All of the outstanding partnership units, and the partnership interests represented thereby,
of the Ares Operating Group Partnership (the “Ares Operating Group Units”) have been duly and validly authorized and issued
and the holders thereof will have no obligation to make payments or contributions to the Ares Operating Group Partnership solely by reason
of their ownership of such Ares Operating Group Units (except in the case of interests held by general partners or similar entities under
the applicable laws of other jurisdictions and as such non-assessability may be affected by Section 17-607 or Section 17-804
of the Delaware RULPA or the partnership agreement of the Ares Operating Group Partnership (as amended and/or restated as of the date
hereof, the “Ares Operating Group Partnership Agreement”)); all Ares Operating Group Units that are owned directly or indirectly
by the Ares Operating Group LLC and the Company (each an “Ares Operating Group Managing Entity”) as described in the Registration
Statement, the Pricing Disclosure Package and the Prospectus, are owned free and clear of any lien, charge, encumbrance, security interest,
restriction on voting or transfer or any other claim of any third party.
(l) No
Other Securities. Except as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, there are
no preemptive rights or other rights to subscribe for or to purchase, any capital stock (including the Common Shares and the Ares Operating
Group Units) of any of the Ares Parties, as applicable, and there are no outstanding options, warrants or other securities exercisable
for, or any other securities convertible into or exchangeable for, any securities of any Ares Party; except as otherwise described in
the Registration Statement, the Pricing Disclosure Package and the Prospectus, no capital stock (including the Common Shares and the
Ares Operating Group Units) of any of the Ares Parties, as applicable, is or will be outstanding prior to or concurrently with the issuance
and/or sale of the Shares pursuant to this Agreement.
(m) Outstanding
Shares. The outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and
non-assessable, and conform in all material respects to the description thereof contained in the Registration Statement, Pricing Disclosure
Package and the Prospectus.
(n) Issued
Shares. The Shares to be issued and sold by the Company have been duly authorized and, when issued and delivered in accordance with
the terms of this Agreement, will be validly issued, will be fully paid and non-assessable, and will conform in all material respects
to the description thereof contained in the Registration Statement, Pricing Disclosure Package and the Prospectus, and the issuance of
such Shares is not subject to any preemptive or similar rights. The Offering AOG Units and the limited partner interests represented
thereby have been duly authorized and, when issued and delivered, will be validly issued and holders of the Offering AOG Units will have
no obligation to make payments or contributions to the Ares Operating Group Partnership or its creditors solely by reason of their ownership
of the Offering AOG Units (except as may be affected by Section 17-607 or Section 17-804 of the Delaware RULPA or similar provisions
under the applicable laws of other jurisdictions or the applicable limited partnership agreement), and will conform in all material respects
to the description thereof contained in the Pricing Disclosure Package and the Prospectus, and the issuance of such Offering AOG Units
is not subject to any preemptive or similar rights.
(o) Due
Authorization. Each Ares Party has full right, power and authority to execute and deliver this Agreement (to the extent party hereto)
and to perform its obligations hereunder; and all action required to be taken for the due and proper authorization, execution and delivery
by it of this Agreement and the consummation by it of the transactions contemplated hereby have been duly and validly taken.
(p) Underwriting
Agreement. This Agreement has been duly authorized, executed and delivered by each Ares Party.
(q) Partnership
Agreement. The Ares Operating Group Partnership Agreement has been duly authorized, executed and delivered by the Ares Operating
Group LLC and such agreement constitutes a valid and legally binding agreement of the Ares Operating Group LLC, enforceable against it
in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting
creditors’ rights generally or by equitable principles relating to enforceability (collectively, the “Enforceability Exceptions”),
and the Ares Operating Group Partnership Agreement conforms in all material respects to the description thereof contained in the Registration
Statement, the Pricing Disclosure Package and the Prospectus.
(r) No
Violation or Default. None of the Ares Entities or any of the Ares Funds is (i) in violation of its charter or by-laws or similar
organizational documents, (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute
such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which it is a party or by which any Ares Entity is bound or to which any of
its property or assets is subject or (iii) in violation of any law or statute or any judgment, order, rule or regulation of
any court or arbitrator or governmental or regulatory authority having jurisdiction over any Ares Entity, except, in the case of clauses
(i) (as to Subsidiaries and Ares Funds that are not Ares Parties), (ii) and (iii) above, for any such default or violation
that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(s) No
Conflicts. The execution, delivery and performance by each Ares Party of this Agreement, the issuance and sale of the Shares pursuant
to this Agreement by the Company and the consummation of the transactions contemplated by this Agreement (including the issuance of the
Offering AOG Units) did not and will not (i) conflict with or result in a breach or violation of any of the terms or provisions
of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets
of any Ares Entity or any Ares Fund pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument
to which any Ares Entity or any Ares Fund is a party or by which any of them is bound or to which any of their respective properties
or assets is subject, (ii) result in any violation of the provisions of the charter or by-laws or similar organizational documents
of any Ares Entity or (iii) result in the violation of any law or statute applicable to any Ares Entity or any judgment, order,
rule or regulation of any court or arbitrator or governmental or regulatory authority having jurisdiction over any Ares Entity,
except, in the case of clauses (i), (ii) (in the case of Subsidiaries and Ares Funds that are not Ares Parties) and (iii) above,
for any such conflict, breach, violation or default that would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect.
(t) No
Consents Required. No consent, approval, authorization, order, registration or qualification of or with any court or arbitrator or
governmental or regulatory authority is required for the execution, delivery and performance by the applicable Ares Party of this Agreement,
the issuance and sale of the Shares pursuant to this Agreement by the Company and the consummation of the transactions contemplated by
this Agreement (including the issuance of the Offering AOG Units), except for such consents, approvals, authorizations, orders and registrations
or qualifications as have been obtained or made (or as will be obtained or made by the Closing Date) or as may be required under the
Securities Act or the Exchange Act, or as have been obtained or made or as may be required by the Financial Industry Regulatory Authority, Inc.
(“FINRA”) and under applicable state securities laws in connection with the purchase and distribution of the Shares by the
Underwriters and except for any such consents, approvals, authorizations, orders, registrations or qualifications or decrees the absence
of which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(u) Legal
Proceedings. Except as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, there are no legal,
governmental or regulatory investigations, actions, suits or proceedings pending to which any Ares Entity or any of the Ares Funds is
or may be a party or to which any property of any of the Ares Entities or any of the Ares Funds is or, to the knowledge of the Ares Parties,
may become subject that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect and to the
knowledge of the Ares Parties, no such investigations, actions, suits or proceedings are threatened in writing or contemplated by any
governmental or regulatory authority or threatened in writing by others; and (i) there are no current or pending legal, governmental
or regulatory actions, suits or proceedings that are required by the Securities Act to be described in the Registration Statement, the
Pricing Disclosure Package or the Prospectus that are not so described in the Registration Statement, the Pricing Disclosure Package
and the Prospectus and (ii) there are no contracts or other documents that are required by the Securities Act to be filed as exhibits
to the Registration Statement or described in the Registration Statement, the Pricing Disclosure Package or the Prospectus that are not
so filed as exhibits to the Registration Statement or described in the Registration Statement, the Pricing Disclosure Package and the
Prospectus.
(v) Independent
Accountants. Ernst & Young LLP, who has certified certain financial statements of the Company and its consolidated subsidiaries
included in or incorporated by reference in the Registration Statement, the Pricing Disclosure Package and the Prospectus and whose reports
are filed with the Commission as part of the Registration Statement, is, and was during the periods covered by such reports, an independent
registered public accounting firm with respect to the entities purported to be covered thereby within the applicable rules and regulations
adopted by the Commission and the Public Company Accounting Oversight Board (United States) and as required by the Securities Act.
(w) Title
to Real and Personal Property. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus,
the Ares Entities have good and marketable title to, or have valid and marketable rights to lease or otherwise use, all items of real
and personal property and assets that are material to the respective businesses of the Ares Entities, in each case free and clear of
all liens, encumbrances, claims and defects and imperfections of title except those that (i) do not materially interfere with the
use made and proposed to be made of such property by the Ares Entities or (ii) would not reasonably be expected, individually or
in the aggregate, to have a Material Adverse Effect.
(x) Title
to Intellectual Property. The Ares Entities own or possess or can acquire on reasonable terms adequate rights to use all material
patents, patent applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights,
licenses and know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems
or procedures) necessary for the conduct of their respective businesses as currently conducted, except where the failure to own or possess
such rights would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Ares Entities
have not received any notice of any claim of infringement, misappropriation or conflict with the asserted rights of others in connection
with its patents, patent rights, licenses, inventions, trademarks, service marks, trade names, copyrights and know-how, which would,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(y) No
Undisclosed Relationships. No relationship, direct or indirect, exists between or among any of the Ares Entities or any Ares Fund,
on the one hand, and the directors, officers, partners, unitholders, shareholders, members or investors of any of the Ares Entities,
on the other, that is required by the Securities Act to be described in the Registration Statement and the Prospectus and that is not
so described in such documents and in the Pricing Disclosure Package.
(z) Investment
Company Act. Each of the Ares Parties is not, and, after giving effect to the offering and sale of the Shares pursuant to this Agreement
by the Company and the application of the proceeds thereof received by the Company as described in the Registration Statement, the Pricing
Disclosure Package and the Prospectus, none of them will be, an “investment company” or an entity “controlled”
by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations
of the Commission thereunder (collectively, the “Investment Company Act”).
(aa) Investment
Advisers Act. Each of the Ares Entities and the Ares Funds (i) that is required to be in compliance with, or registered, licensed
or qualified pursuant to, the Investment Advisers Act of 1940, as amended, and the rules and regulations promulgated thereunder
(the “Advisers Act”), the Investment Company Act, and the rules and regulations promulgated thereunder, or the U.K.
Financial Services and Markets Act 2000 and the rules and regulations promulgated thereunder, is in compliance with, or registered,
licensed or qualified pursuant to, such laws, rules and regulations (and such registration, license or qualification is in full
force and effect), to the extent applicable, except as disclosed in the Registration Statement, the Pricing Disclosure Package and the
Prospectus or where the failure to be in such compliance or so registered, licensed or qualified would not reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect or (ii) that is required to be registered, licensed or qualified as a broker-dealer
or as a commodity trading advisor, a commodity pool operator or a futures commission merchant or any or all of the foregoing, as applicable,
is so registered, licensed or qualified in each jurisdiction where the conduct of its business requires such registration, license or
qualification (and such registration, license or qualification is in full force and effect), and is in compliance with all applicable
laws requiring any such registration, licensing or qualification, except as disclosed in the Registration Statement, the Pricing Disclosure
Package and the Prospectus or where the failure to be so registered, licensed, qualified or in compliance would not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect.
(bb) Taxes.
Except as otherwise disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus or as would not reasonably
be expected, individually or in the aggregate, to have a Material Adverse Effect: (i) the Ares Entities and the Ares Funds have
paid all federal, state, local and foreign taxes required to be paid by them through the date hereof and all assessments, fines, interest,
fees and penalties related to such taxes levied against them to the extent that any of the foregoing has become due and payable through
the date hereof, except, in each case, for taxes being contested in good faith for which adequate reserves have been taken, and have
filed all federal, state, local, and foreign tax returns required to be filed through the date hereof or have requested extensions thereof
in the ordinary course of business, (ii) there is no tax deficiency that has been, and none of the Ares Parties has knowledge of
any tax deficiency that could reasonably be expected to be, asserted against any of the Ares Entities, any of the Ares Funds or any of
their respective properties or assets and (iii) there are no tax audits or investigations currently ongoing, of which the Ares Parties
have written notice.
(cc) Licenses
and Permits. The Ares Entities possess all licenses, certificates, permits and other authorizations issued by, and have made all
declarations and filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities that are necessary
for the ownership or lease of their respective properties or the conduct of their respective businesses as described in the Registration
Statement, the Pricing Disclosure Package and the Prospectus, except where the failure to possess or make the same would not, individually
or in the aggregate, have a Material Adverse Effect; and except as described in the Registration Statement, the Pricing Disclosure Package
and the Prospectus or as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, no Ares
Entity has received written notice of any revocation or modification of any such license, certificate, permit or authorization or has
any reason to believe that any such license, certificate, permit or authorization will not be renewed in the ordinary course.
(dd) No
Labor Disputes. No labor disturbance by or dispute with employees of the Ares Entities exists or, to the knowledge of any Ares Party,
is contemplated or threatened, and the Ares Parties are not aware of any existing or imminent labor disturbance by, or dispute with,
the employees of the Ares Entities’ principal suppliers, contractors or customers, except, in each case, as would not reasonably
be expected to have a Material Adverse Effect.
(ee) Compliance
with and Liability under Environmental Laws. The Ares Entities (a) are in compliance with any and all applicable federal, state,
local and foreign laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances
or wastes, pollutants or contaminants (“Environmental Laws”), (b) have received all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct their respective businesses and (c) are in compliance with all terms
of any such permit, license or approval, except where failure to receive required permits, licenses or other approvals would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(ff) Compliance
with ERISA. Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) each
employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), subject to Title IV of ERISA, that is maintained, administered or contributed to by the Company or any of its
affiliates, that together with the Company would be deemed a “single employer” within the meaning of Section 4001(b)(1) of
ERISA (“ERISA Affiliates”) for employees or former employees of the Company and its ERISA Affiliates, other than any multiemployer
plan within the meaning of Section 3(37) of ERISA has been maintained in compliance with its terms and the requirements of any applicable
statutes, orders, rules and regulations, including ERISA and the Internal Revenue Code of 1986, as amended (the “Code”),
(ii) the Company, each member of its Controlled Group and each Ares Fund are, and at all times have been, in compliance with ERISA,
(iii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, excluding transactions
effected pursuant to a class, statutory or administrative exemption, has occurred with respect to any such plan or with respect to the
Company, any member of its Controlled Group or any Ares Fund, (iv) for each such plan that is subject to the funding rules of
Section 412 of the Code or Section 302 of ERISA, the minimum funding standard of Section 412 of the Code has been satisfied
(without taking into account any waiver thereof), (v) no “reportable event” (within the meaning of Section 4043(c) of
ERISA) has occurred with respect to any such plan for which the Company would have any material liability, and (vi) neither the
Company nor any of its ERISA Affiliates has incurred or reasonably expects to incur any liability under Title IV of ERISA (other than
contributions to the Plan or premiums to the PBGC, in the ordinary course and without default) with respect to termination of, or withdrawal
from, any such plan.
(gg) Disclosure
Controls. The Company maintains a system of “disclosure controls and procedures” (as defined in Rule 13a-15(e) of
the Exchange Act) that has been designed to ensure that information required to be disclosed by the Company in reports that it files
or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s
rules and forms, including controls and procedures designed to ensure that such information is accumulated and communicated to the
Company’s management as appropriate to allow timely decisions regarding required disclosure. The Company has carried out evaluations
of the effectiveness of its disclosure controls and procedures as required by the Exchange Act.
(hh) Accounting
Controls. The Company maintains systems of internal accounting controls sufficient to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets
is permitted only in accordance with management’s general or specific authorization, (iv) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences and
(v) interactive data in eXtensible Business Reporting Language included or incorporated by reference in each of the Registration
Statement, the Pricing Disclosure Package and the Prospectus is prepared in all material respects in accordance with the Commission’s
rules and guidelines applicable thereto. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the
Prospectus, since the end of the Company’s predecessors’ most recent audited fiscal year, there has been no change in the
Company’s or its predecessors’ internal control over financial reporting that has materially adversely affected, or is reasonably
likely to materially adversely affect, the Company’s internal control over financial reporting. Except as disclosed in the Registration
Statement, the Pricing Disclosure Package and the Prospectus, the Company is not aware of any material weakness in its internal controls
over financial reporting.
(ii) Insurance.
The Ares Entities have insurance covering their respective properties, operations, personnel and businesses, which insurance is in
amounts and insures against such losses and risks as are customary in the businesses in which they are engaged; and no Ares Entity has
(i) received notice from any insurer or agent of such insurer that capital improvements or other expenditures are required or necessary
to be made in order to continue such insurance or (ii) any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage at reasonable cost from similar insurers as may be necessary
to continue its business except in each case as would not reasonably be expected to have a Material Adverse Effect.
(jj) No
Unlawful Payments. None of the Ares Entities or any of the Ares Funds, nor, to the knowledge of the Ares Parties, any director, officer
agent, employee or other person associated with or acting on behalf of any Ares Entity or any of the Ares Funds has (i) used any
corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity, (ii) made
any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds, (iii) violated
or is in violation of any provision of the Foreign Corrupt Practices Act of 1977 (the “FCPA”), as amended or (iv) made
any bribe, rebate, payoff, influence payment, kickback or other unlawful payment.
(kk) Compliance
with Anti-Money Laundering Laws. The operations of the Ares Entities and the Ares Funds are and have been conducted at all times
in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act
of 1970, as amended (the “CFTRA”), and the applicable money laundering statutes of all other jurisdictions having jurisdiction
over any of the Ares Entities or any of the Ares Funds, the applicable rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any other governmental agency having jurisdiction over any of the
Ares Entities or any of the Ares Funds(collectively, the “Other Anti-Money Laundering Laws”), and no action, suit or proceeding
by or before any court or governmental agency, authority or body or any arbitrator involving any of the Ares Entities or any of the Ares
Funds with respect to the CFTRA or Other Anti-Money Laundering Laws is pending or, to the knowledge of the Ares Parties, threatened.
(ll) No
Conflicts with Sanctions Laws. None of the Ares Entities, the Ares Funds or, to the knowledge of the Ares Parties, any of the Ares
Entities’ respective directors, officers, agents, employees or affiliates is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the United National Security Council, the European Union
or His Majesty’s Treasury (collectively, “Sanctions”); and the Company will not directly or indirectly use the proceeds
of the offering of the Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture
partner or other person or entity (i) to fund any activities of or business with any person that, at the time of such funding, is
the subject of Sanctions, (ii) to fund any activities of or business in a country of territory that is subject or target of Sanctions,
including without limitation, the so-called Donetsk People’s Republic, so-called Luhansk People’s Republic or any other Covered
Region of Ukraine identified pursuant to Executive Order 14065, the Crimea and the non-government controlled areas of the Zaporizhzhia
and Kherson Regions of Ukraine, Cuba, Iran, North Korea and Syria (each, a “Sanctioned Country”) or (iii) in any
other manner that will result in a violation by any person (including any person participating in the offering of Securities, whether
as underwriter, advisor, investor or otherwise) of Sanctions.
(mm) No
Restrictions on Subsidiaries. No Subsidiary is currently prohibited, directly or indirectly, under any agreement or other instrument
to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution on such Subsidiary’s
capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such
Subsidiary’s properties or assets to the Company or any other Subsidiary of the Company, except as disclosed in the Registration
Statement, the Pricing Disclosure Package and the Prospectus or as would not reasonably be expected to materially reduce the distributions
to be received by the Ares Operating Group Partnership from its direct and indirect Subsidiaries.
(nn) No
Broker’s Fees. None of the Ares Entities is a party to any contract, agreement or understanding with any person (other than
this Agreement) that would give rise to a valid claim against any Ares Entity or any Underwriter for a brokerage commission, finder’s
fee or like payment in connection with the offering and sale of the Shares pursuant to this Agreement.
(oo) No
Registration Rights. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, no person
has the right to require any Ares Entity to register any securities for sale under the Securities Act by reason of the filing of the
Registration Statement with the Commission, the issuance and sale of the Shares pursuant to this Agreement by the Company.
(pp) No
Stabilization. No Ares Entity has taken, directly or indirectly, any action designed to or that could reasonably be expected
to cause or result in any unlawful stabilization or manipulation of the price of the Shares to facilitate the sale or resale of the Shares.
(qq) Accuracy
of Disclosure. The statement set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus under the
caption “Description of Capital Stock” and the statements set forth in the Pricing Disclosure Package and the Prospectus
under the caption “Material U.S. Federal Tax Considerations for Non-U.S. Holders of Class A Common Stock,” and the statements
set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 under the captions “Part I., Item
1. Business—Business—Organizational Structure” and “Part III., Item 13. Certain Relationships and Related
Person Transactions, and Director Independence,” insofar as they purport to describe the provisions of the laws and documents referred
to therein, are accurate in all material respects.
(rr) Margin
Rules. Neither the issuance, sale and delivery of the Shares by the Company, nor the application of the proceeds thereof by the Company
as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus will violate Regulation T, U or X of the
Board of Governors of the Federal Reserve System or any other regulation of such Board of Governors.
(ss) Forward-Looking
Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act) included or incorporated by reference in the Registration Statement, the Pricing Disclosure Package or the Prospectus has
been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.
(tt) Funds.
To the knowledge of the Ares Parties, (i) none of the Subsidiaries that act as a general partner or managing member (or in a similar
capacity) or as an investment adviser or investment manager of any Ares Fund has performed any act or otherwise engaged in any conduct
that would prevent such Subsidiary from benefiting from any exculpation clause or other limitation of liability available to it under
the terms of the management agreement or advisory agreement, as applicable, between such Subsidiary and such Ares Fund and (ii) the
offering, sale, issuance and distribution of securities by the Ares Funds have been made in compliance with the Securities Act and the
securities laws of any state or foreign jurisdiction applicable with respect thereto, except, in each case, as would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(uu) Statistical
and Market Data. Nothing has come to the attention of any Ares Party that has caused such Ares Party to believe that the statistical
and market-related data included or incorporated by reference in the Registration Statement, the Pricing Disclosure Package and the Prospectus
is not based on or derived from sources that are reliable and accurate in all material respects.
(vv) NYSE
Stock Market. The Shares have been approved for listing on the New York Stock Exchange (the “NYSE”).
(ww) Sarbanes-Oxley
Act. As of the date hereof, the Ares Entities are in material compliance with all provisions of the Sarbanes-Oxley Act of 2002, as
amended and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”) that are then in
effect and which the Ares Entities are required to comply with.
(xx) Status
under the Securities Act. At the time of filing the Registration Statement and any post-effective amendment thereto, at the earliest
time thereafter that the Company or any offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under
the Securities Act) of the Shares and at the date hereof, the Company was not and is not an “ineligible issuer,” and is a
well-known seasoned issuer, in each case as defined in Rule 405 under the Securities Act. The Company has paid the registration
fee for this offering pursuant to Rule 456(b)(1)(i) and otherwise in accordance with Rules 456(b) and 457(r) or
will pay such fee within the time period required by such rules (without giving effect to the proviso in Rule 456(b)(1)(i)),
and in any event prior to the Closing Date.
(yy) No
Sale of Equity Interests. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, neither
the Company nor the Ares Operating Group Partnership has sold, issued or distributed any equity interests in such entity during the six-month
period preceding the date hereof, including any sales pursuant to Rule 144A under, or Regulation D or S of, the Securities
Act, other than equity interests issued pursuant to the Plans.
(zz) No
Downgrade. No downgrading has occurred in the rating accorded any debt securities or preferred units or stock, as the case may be,
issued or guaranteed by any Ares Entity that are rated by a “nationally recognized statistical rating organization,” as such
term is defined under Section 3(a)(62) under the Exchange Act, and (ii) no such organization has publicly announced that it
has under surveillance or review with possible negative implications, or has changed its outlook with possible negative implications
with respect to, its rating of any such debt securities or preferred stock issued or guaranteed by any Ares Entity (other than an announcement
with positive implications of a possible upgrading).
(aaa) Cybersecurity.
(A) The Company is not aware of any current security breach or incident, unauthorized access or disclosure, or other compromise
of the Company’s or its subsidiaries’ information technology and computer systems, networks, hardware, software, data and
databases managed by any Ares Entity or on behalf of any Ares Entity (collectively, “IT Systems and Data”), except for any
such security breach or incident, unauthorized access or disclosure, or other compromise of any Ares Entity’s IT Systems and Data
that would not be reasonably expected to, individually or in the aggregate, have a Material Adverse Effect and (B) to the knowledge
of the Company, the Ares Entities have implemented appropriate controls, policies, procedures and technological safeguards to maintain
and protect the integrity, operation, redundancy and security of their IT Systems and Data to be used in connection with the Company’s
proposed method of operation set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus. To the knowledge
of the Company, the Ares Entities are presently in compliance with all applicable laws and regulations relating to the privacy and security
of IT Systems and Data, except where failure to be so in compliance would not, individually or in the aggregate, have a Material Adverse
Effect.
4. Further
Agreements of the Company. The Company covenants and agrees with each Underwriter that:
(a) Required
Filings. The Company will file the final Prospectus with the Commission within the time periods specified by Rule 424(b) and
Rule 430B under the Securities Act; will file any Issuer Free Writing Prospectus to the extent required by Rule 433 under the
Securities Act, will file promptly all reports and any definitive proxy or information statements required to be filed by the Company
with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the Prospectus
and for so long as the delivery of a prospectus is required in connection with the offering or sale of the Shares and will furnish copies
of the Prospectus and each Issuer Free Writing Prospectus (to the extent not previously delivered) to the Underwriters in New York City
prior to 10:00 A.M., New York City time, on the business day next succeeding the date of this Agreement in such quantities as the Representatives
may reasonably request; if, at the time this Agreement is executed and delivered, it is necessary or appropriate for a post-effective
amendment to the Registration Statement, or a Rule 462 Registration Statement, to be filed with the Commission and become effective
before the Shares may be sold, the Company will use its best efforts to cause such post-effective amendment or such Rule 462 Registration
Statement to be filed and become effective, and will pay any applicable fees in accordance with the Securities Act, as soon as possible;
and the Company will advise the Representatives promptly and, if requested by the Representatives, will confirm such advice in writing,
(i) when such post-effective amendment or such Rule 462 Registration Statement has become effective, and (ii) if Rule 430B
under the Securities Act is used, when the Prospectus is filed with the Commission pursuant to Rule 424(b) under the Securities
Act (which the Company agrees to file in a timely manner in accordance with such Rules). The Company will pay the registration fee for
this offering within the time period required by Rule 456(b)(1) under the Securities Act (without giving effect to the proviso
therein) and in any event prior to the Closing Date. If by the third anniversary (the “Renewal Deadline”) of the initial
effective date of the Registration Statement, any of the Shares remain unsold by the Underwriters, the Company will file, if it has not
already done so and is eligible to do so, a new automatic shelf registration statement relating to the Shares, in a form satisfactory
to you. If at the Renewal Deadline the Company is no longer eligible to file an automatic shelf registration statement, the Company
will, if it has not already done so, file a new shelf registration statement relating to the Shares, in a form satisfactory to you and
will use its best efforts to cause such registration statement to be declared effective within 180 days after the Renewal Deadline.
The Company will take all other action necessary or appropriate to permit the public offering and sale of the Shares to continue as contemplated
in the expired registration statement relating to the Shares. References herein to the Registration Statement shall include such
new automatic shelf registration statement or such new shelf registration statement, as the case may be.
(b) Delivery
of Copies. The Company will deliver, upon request without charge, (i) to the Representatives, four signed copies of the Registration
Statement as originally filed and each amendment thereto, in each case including all exhibits and consents filed therewith and documents
incorporated by reference therein; and (ii) to each Underwriter (A) a conformed copy of the Registration Statement as originally
filed and each amendment thereto (without exhibits) and (B) during the Prospectus Delivery Period (as defined below), as many copies
of the Prospectus (including all amendments and supplements thereto and documents incorporated by reference therein and each Issuer Free
Writing Prospectus, if applicable) as the Representatives may reasonably request. As used herein, the term “Prospectus Delivery
Period” means such period of time after the first date of the public offering of the Shares pursuant to this Agreement as in the
opinion of counsel for the Underwriters a prospectus relating to the Shares is required by law to be delivered (or required to be delivered
but for Rule 172 under the Securities Act) in connection with sales of the Shares by any Underwriter or dealer.
(c) Amendments
or Supplements, Issuer Free Writing Prospectuses. Before preparing, using, authorizing, approving, referring to or filing any
Issuer Free Writing Prospectus, and before filing any amendment or supplement to the Registration Statement or the Prospectus, the Company
will furnish to the Representatives and counsel for the Underwriters a copy of the proposed Issuer Free Writing Prospectus, amendment
or supplement for review and will not prepare, use, authorize, approve, refer to or file any such Issuer Free Writing Prospectus or file
any such proposed amendment or supplement to which the Representatives reasonably object in a timely manner.
(d) Notice
to the Representatives. The Company will advise the Representatives promptly, and confirm such advice in writing, (i) when any
amendment to the Registration Statement has been filed or becomes effective, (ii) when any supplement to the Prospectus, or any
Issuer Free Writing Prospectus or any amendment to the Prospectus has been filed or distributed, (iii) of any request by the Commission
for any amendment to the Registration Statement or any amendment or supplement to the Prospectus or the receipt of any comments from
the Commission relating to the Registration Statement or any other request by the Commission for any additional information, (iv) of
the issuance by the Commission of any order suspending the effectiveness of the Registration Statement or preventing or suspending the
use of any Preliminary Prospectus, any of the Pricing Disclosure Package, or the Prospectus or the initiation or threatening of any proceeding
for that purpose or pursuant to Section 8A of the Securities Act, (v) of the occurrence of any event within the Prospectus
Delivery Period as a result of which the Prospectus, the Pricing Disclosure Package, or any Issuer Free Writing Prospectus as then amended
or supplemented would include any untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances existing when the Prospectus, the Pricing Disclosure Package, or any such Issuer
Free Writing Prospectus is delivered to a purchaser, not misleading, (vi) of the receipt by the Company of any notice of objection
of the Commission to the use of the Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under
the Securities Act and (vii) of the receipt by the Company of any notice with respect to any suspension of the qualification of
the Shares for offer and sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and the Company
will use its reasonable best efforts to prevent the issuance of any such order suspending the effectiveness of the Registration Statement,
preventing or suspending the use of any Preliminary Prospectus, any of the Pricing Disclosure Package or the Prospectus or suspending
any such qualification of the Shares and, if any such order is issued, will obtain as soon as possible the withdrawal thereof.
(e) Ongoing
Compliance. (1) If during the Prospectus Delivery Period (i) any event shall occur or condition shall exist as a result
of which the Prospectus as then amended or supplemented would include any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the circumstances existing when the Prospectus is delivered to
a purchaser, not misleading or (ii) it is necessary to amend or supplement the Prospectus to comply with law, the Company will immediately
notify the Underwriters thereof and forthwith prepare and, subject to paragraph (c) above, file with the Commission and furnish
to the Underwriters and to such dealers as the Representatives may designate such amendments or supplements to the Prospectus (or any
document to be filed with the Commission and incorporated by reference therein) as may be necessary so that the statements in the Prospectus
as so amended or supplemented (or any document to be filed with the Commission and incorporated by reference therein) will not, in the
light of the circumstances existing when the Prospectus is delivered to a purchaser, be misleading or so that the Prospectus will comply
with law and (2) if at any time prior to the Closing Date (i) any event shall occur or condition shall exist as a result of
which the Pricing Disclosure Package as then amended or supplemented would include any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in the light of the circumstances existing when the Pricing
Disclosure Package is delivered to a purchaser, not misleading or (ii) it is necessary to amend or supplement the Pricing Disclosure
Package to comply with law, the Company will immediately notify the Underwriters thereof and forthwith prepare and, subject to paragraph
(c) above, file with the Commission (to the extent required) and furnish to the Underwriters and to such dealers as the Representatives
may designate, such amendments or supplements to the Pricing Disclosure Package (or any document to be filed with the Commission and
incorporated by reference therein) as may be necessary so that the statements in the Pricing Disclosure Package as so amended or supplemented
will not, in the light of the circumstances existing when the Pricing Disclosure Package is delivered to a purchaser, be misleading or
so that the Pricing Disclosure Package will comply with law.
(f) Blue
Sky Compliance. To the extent required, the Company will qualify the Shares for offer and sale under the securities or Blue Sky laws
of such jurisdictions as the Representatives shall reasonably request and will continue such qualifications in effect so long as required
for distribution of the Shares; provided that the Company shall not be required to (i) qualify as a foreign corporation or
other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (ii) file
any general consent to service of process in any such jurisdiction or (iii) subject itself to taxation in any such jurisdiction
if it is not otherwise so subject as of the date of this Agreement.
(g) Earnings
Statement. The Company will make generally available to its security holders and the Representatives as soon as practicable an earnings
statement that satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission promulgated
thereunder covering a period of at least twelve months beginning with the first fiscal quarter of the Company occurring after the “effective
date” (as defined in Rule 158) of the Registration Statement.
(h) Clear
Market. For a period of 45 days after the date of the Prospectus, the Company will not (i) offer, pledge, announce the intention
to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, or file with the Commission a registration
statement (other than any registration statement on Form S-8 to register Common Shares issued or available for future grant under
the Ares Equity Incentive Plan) under the Securities Act relating to, any Common Shares or any securities convertible into or exercisable
or exchangeable for Common Shares, or publicly disclose the intention to make any offer, sale, pledge, disposition or filing, or (ii) enter
into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Common Shares
or any such other securities or shares, whether any such transaction described in clause (i) or (ii) above is to be settled
by delivery of Common Shares or such other securities or shares, in cash or otherwise, without the prior written consent of Morgan Stanley &
Co. LLC and BofA Securities, Inc., other than (A) the Shares to be sold by the Company hereunder; (B) the issuance of
Common Shares or securities convertible into or exercisable or exchangeable for Common Shares upon the exercise of an option or a warrant
or the conversion of a security outstanding on the date of the Prospectus, (C) the issuance of Common Shares or securities convertible
into or exercisable or exchangeable for Common Shares pursuant to the Ares Equity Incentive Plan, or (D) the issuance of up to ten
percent (10%) of the Common Shares outstanding after this offering (assuming all Ares Operating Group Units have been exchanged for Common
Shares), or securities convertible into or exercisable or exchangeable for Common Shares in connection with mergers or acquisitions,
joint ventures, commercial relationships or other strategic transactions; provided that, the acquiree of any such Common Shares
or securities convertible into or exercisable or exchangeable for Common Shares pursuant to this clause (D) enters into an agreement
in the form of Annex C hereto with respect to such Common Shares or securities convertible into or exercisable or exchangeable for Common
Shares.
For a period of 45 days after the date of the Prospectus,
no Ares Entity will waive, modify or amend any transfer restrictions (including lock up provisions) relating to any Ares Operating Group
Units or Common Shares contained in any agreements with holders thereof, without the written consent of Morgan Stanley & Co.
LLC and BofA Securities, Inc.
(i) Use
of Proceeds. The Company will apply the net proceeds from the sale of the Shares pursuant to this Agreement as described in the Registration
Statement, the Pricing Disclosure Package and the Prospectus under the heading “Use of Proceeds.”
(j) No
Stabilization. No Ares Entity will take, directly or indirectly, any action designed to or that could reasonably be expected to cause
or result in any unlawful stabilization or manipulation of the price of the Shares.
(k) Exchange
Listing. The Company will use its best efforts to list the Shares on the NYSE.
(l) Reports.
So long as the Shares are outstanding, the Company will furnish to the Representatives, as soon as they are available, copies of
all reports or other communications (financial or other) furnished to holders of the Shares, and copies of any reports and financial
statements furnished to or filed by the Company with the Commission or any national securities exchange or automatic quotation system;
provided the Company will be deemed to have furnished such reports and financial statements to the Representatives to the extent
they are filed on the Commission’s Electronic Data Gathering, Analysis, and Retrieval system.
(m) Record
Retention. The Company will, pursuant to reasonable procedures developed in good faith, retain copies of each Issuer Free Writing
Prospectus that is not filed with the Commission in accordance with Rule 433 under the Securities Act.
(n) Filings.
The Company will file with the Commission such reports as may be required by Rule 463 under the Securities Act.
5. Certain
Agreements of the Underwriters. Each Underwriter hereby represents and agrees that:
(a) It
has not used, authorized use of, referred to or participated in the planning for use of, and will not use, authorize use of, refer to
or participate in the planning for use of, any “free writing prospectus,” as defined in Rule 405 under the Securities
Act (which term includes use of any written information furnished to the Commission by the Company and not incorporated by reference
into the Registration Statement and any press release issued by the Company) other than (i) a free writing prospectus that contains
no “issuer information” (as defined in Rule 433(h)(2) under the Securities Act) that was not included (including
through incorporation by reference) in the Preliminary Prospectus or a previously filed Issuer Free Writing Prospectus, (ii) any
Issuer Free Writing Prospectus listed on Annex A or prepared pursuant to Section 3(c) or Section 4(c) above (including
any electronic road show), or (iii) any free writing prospectus prepared by such Underwriter and approved by the Company in advance
in writing (each such free writing prospectus referred to in clauses (i) or (iii), an “Underwriter Free Writing Prospectus”).
(b) It
has not used, and will not use, without the prior written consent of the Company, any free writing prospectus that contains the final
terms of the Shares unless such terms have previously been included in a free writing prospectus filed with the Commission; provided
that Underwriters may use a term sheet substantially in the form of Annex B hereto without the consent of the Company; provided,
further, that any Underwriter using such term sheet shall notify the Company, and provide a copy of such term sheet to the Company,
prior to, or substantially concurrently with, the first use of such term sheet.
(c) It
is not subject to any pending proceeding under Section 8A of the Securities Act with respect to the offering contemplated by this
Agreement (and will promptly notify the Company if any such proceeding against it is initiated during the Prospectus Delivery Period).
6. Conditions
of Underwriters’ Obligations. The obligation of each Underwriter to purchase the Underwritten Shares on the Closing Date or
the Option Shares on the Additional Closing Date, as the case may be, as provided herein is subject to the performance by the Company
of its covenants and other obligations hereunder and to the following additional conditions:
(a) Registration
Compliance; No Stop Order. No order suspending the effectiveness of the Registration Statement shall be in effect, and no proceeding
for such purpose, pursuant to Rule 401(g)(2) or pursuant to Section 8A under the Securities Act shall be pending before
or threatened by the Commission; the Prospectus and each Issuer Free Writing Prospectus shall have been timely filed with the Commission
under the Securities Act (in the case of an Issuer Free Writing Prospectus, to the extent required by Rule 433 under the Securities
Act) and in accordance with Section 5(a) hereof; and all requests by the Commission for additional information shall have been
complied with to the reasonable satisfaction of the Representatives.
(b) Representations
and Warranties. The respective representations and warranties of the Ares Parties contained herein shall be true and correct on the
date hereof and on and as of the Closing Date or the Additional Closing Date, as the case may be; and the statements of each of the Company
and its officers made in any certificates delivered pursuant to this Agreement shall be true and correct on and as of the Closing Date
or the Additional Closing Date, as the case may be.
(c) No
Downgrade. Subsequent to the earlier of (A) the Applicable Time and (B) the execution and delivery of this Agreement, (i) no
downgrading shall have occurred in the rating accorded any debt securities or preferred units or stock, as the case may be, issued or
guaranteed by the Company or any of its subsidiaries that are rated by a “nationally recognized statistical rating organization,”
as such term is defined under Section 3(a)(62) under the Exchange Act, and (ii) no such organization shall have publicly announced
that it has under surveillance or review with possible negative implications, or has changed its outlook with possible negative implications
with respect to, its rating of any such debt securities or preferred stock issued or guaranteed by the Company or any of its subsidiaries
(other than an announcement with positive implications of a possible upgrading).
(d) No
Material Adverse Change. No event or condition of a type described in Section 3(g) hereof shall have occurred or shall
exist, which event or condition is not described in the Pricing Disclosure Package (excluding any amendment or supplement thereto) and
the Prospectus (excluding any amendment or supplement thereto) and the effect of which in the judgment of the Representatives makes it
impracticable or inadvisable to proceed with the offering, sale or delivery of the Shares on the Closing Date or the Additional Closing
Date, as the case may be, on the terms and in the manner contemplated by this Agreement, the Pricing Disclosure Package and the Prospectus.
(e) Officers’
Certificate. The Representatives shall have received on and as of the Closing Date or the Additional Closing Date, as the case may
be, a certificate of the chief financial officer or chief accounting officer of the Company and one additional senior executive officer
of the Company who is reasonably satisfactory to the Representatives (i) confirming that such officers have carefully reviewed the
Registration Statement, the Pricing Disclosure Package and the Prospectus and, to the best knowledge of such officers, the representations
of the Ares Parties set forth in Sections 3(b) and 3(d) hereof are true and correct, (ii) confirming that the other representations
and warranties of the Ares Parties in this Agreement are true and correct and that the Ares Parties have complied with all agreements
and satisfied all conditions on their part to be performed or satisfied hereunder at or prior to the Closing Date or the Additional Closing
Date, as the case may be and (iii) to the effect set forth in paragraph (c) above.
(f) Comfort
Letters. On the date of this Agreement and on the Closing Date or the Additional Closing Date, as the case may be, (i) Ernst &
Young LLP shall have furnished to the Representatives, at the request of the Company, letters, dated the respective dates of delivery
thereof and addressed to the Underwriters, in form and substance reasonably satisfactory to the Representatives, containing statements
and information of the type customarily included in accountants’ “comfort letters” to underwriters with respect to
the financial statements and certain financial information contained or incorporated by reference in the Registration Statement, the
Pricing Disclosure Package and the Prospectus; provided, that the letter delivered on the Closing Date or the Additional Closing
Date, as the case may be, shall use a “cut-off” date no more than three business days prior to such Closing Date or such
Additional Closing Date, as the case may be and (ii) the Company shall have furnished to the Representatives a certificate, dated
the respective dates of delivery thereof and addressed to the Underwriters, of its chief financial officer with respect to certain financial
data contained in the Pricing Disclosure Package and the Prospectus, providing “management comfort” with respect to such
information, in form and substance reasonably satisfactory to the Representatives.
(g) Opinion
and 10b-5 Statement of Counsel for the Company. Kirkland & Ellis LLP, counsel for the Company, shall have furnished to the
Representatives, at the request of the Company, their written opinion and 10b-5 statement, dated the Closing Date or the Additional Closing
Date, as the case may be, and addressed to the Underwriters, in form and substance reasonably satisfactory to the Representatives.
(h) Opinion
and 10b-5 Statement of Counsel for the Underwriters. The Representatives shall have received on and as of the Closing Date or the
Additional Closing Date, as the case may be, an opinion and 10b-5 statement of Latham & Watkins LLP, counsel for the Underwriters,
with respect to such matters as the Representatives may reasonably request, and such counsel shall have received such documents and information
as they may reasonably request to enable them to pass upon such matters.
(i) No
Legal Impediment to Issuance and/or Sale. No action shall have been taken and no statute, rule, regulation or order shall have been
enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Closing Date or
the Additional Closing Date, as the case may be, prevent the issuance or sale of the Shares pursuant to this Agreement by the Company;
and no injunction or order of any federal, state or foreign court shall have been issued that would, as of the Closing Date or the Additional
Closing Date, as the case may be, prevent the issuance or sale of the Shares pursuant to this Agreement by the Company.
(j) Good
Standing. The Representatives shall have received on and as of the Closing Date or the Additional Closing Date, as the case may be,
satisfactory evidence of the good standing of each of the Ares Parties in their respective jurisdictions of organization and, with respect
to the Company, its good standing as a foreign entity in such other jurisdictions as the Representatives may reasonably request, in each
case in writing or any standard form of telecommunication from the appropriate governmental authorities of such jurisdictions.
(k) Exchange
Listing. The Shares to be delivered on the Closing Date or the Additional Closing Date, as the case may be, shall have been approved
for listing on the NYSE.
(l) Lock-up
Agreements. The “lock-up” agreements, each substantially in the form of Annex C hereto, between you and each executive
officer and director of the Company relating to sales and certain other dispositions of Common Shares or certain other securities, delivered
to you on or before the date hereof, shall be in full force and effect on the Closing Date or the Additional Closing Date, as the case
may be.
(m) Additional
Documents. On or prior to the Closing Date or the Additional Closing Date, as the case may be, the Company shall have furnished to
the Representatives such further certificates and documents as the Representatives may reasonably request.
All opinions, letters, certificates and evidence
mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriters.
7. Indemnification
and Contribution.
(a) Indemnification
of the Underwriters by the Ares Parties. The Ares Parties, jointly and severally, agree to indemnify and hold harmless each Underwriter,
its affiliates, directors, officers and each person, if any, who controls such Underwriter within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including,
without limitation, reasonable legal fees and other reasonable and documented expenses incurred in connection with any suit, action or
proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based upon, (i) any
untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or caused by any omission or
alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein,
not misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained in the Prospectus (or any amendment
or supplement thereto), any Issuer Free Writing Prospectus, any “issuer information” filed or required to be filed pursuant
to Rule 433(d) under the Securities Act, any road show as defined in Rule 433(h) under the Securities Act (a “road
show”) or any Pricing Disclosure Package (including any Pricing Disclosure Package that has subsequently been amended), or caused
by any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities
arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to any Underwriter furnished to the Company in writing by such Underwriter through the Representatives
expressly for use therein, it being understood and agreed that the only such information furnished by any Underwriter consists of the
information described as such in subsection (b) below.
(b) Indemnification
of the Ares Parties by the Underwriters. Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless each
Ares Party, each of their respective directors and officers who signed the Registration Statement and each person, if any, who controls
any Ares Party within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent
as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that arise
out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity
with any information relating to such Underwriter furnished to the Company in writing by such Underwriter through the Representatives
expressly for use in the Registration Statement, the Prospectus (or any amendment or supplement thereto), any Issuer Free Writing Prospectus,
any road show or any Pricing Disclosure Package (including any Pricing Disclosure Package that has subsequently been amended), it being
understood and agreed upon that the only such information furnished by any Underwriter consists of the following information in the Prospectus
furnished on behalf of each Underwriter: (i) the concession and reallowance figures appearing in the second sentence of the third
paragraph under the caption “Underwriting” and (ii) the information contained in the third and fourth sentences of the
eleventh paragraph and the twelfth paragraph under the caption “Underwriting” related to stabilization, syndicate covering
transactions and penalty bids.
(c) Notice
and Procedures. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be
brought or asserted against any person in respect of which indemnification may be sought pursuant to the preceding paragraphs of this
Section 7, such person (the “Indemnified Person”) shall promptly as practicable notify the person against whom such
indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying
Person shall not relieve it from any liability that it may have under the preceding paragraphs of this Section 7 except to the extent
that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further,
that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person
otherwise than under the preceding paragraphs of this Section 7. If any such proceeding shall be brought or asserted against an
Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably
satisfactory to the Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel to the Indemnifying
Person) to represent the Indemnified Person in such proceeding and shall pay the reasonable fees and expenses of such counsel related
to such proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the
Indemnified Person shall have mutually agreed to the contrary, (ii) the Indemnifying Person has failed within a reasonable time
to retain counsel reasonably satisfactory to the Indemnified Person, (iii) the Indemnified Person shall have reasonably concluded
that there may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person,
or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the
Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing
interest between them. It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel)
for all Indemnified Persons, and that all such fees and expenses shall be paid or reimbursed as they are incurred. Any such separate
firm for any Underwriter, its affiliates, directors, officers and any control persons of such Underwriter shall be designated in writing
by the Representatives and any such separate firm for any Ares Party, their respective directors and officers who signed the Registration
Statement and any control persons of any Ares Party shall be designated in writing by such Ares Party. The Indemnifying Person shall
not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there
be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss
or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall
have requested that an Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this
paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding effected without its written consent if (i) such
settlement is entered into more than 45 days after receipt by the Indemnifying Person of such request, (ii) such Indemnifying Person
shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) the
Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request prior to the date of such settlement.
No Indemnifying Person shall, without the prior written consent of the Indemnified Person, effect any settlement, compromise or consent
to entry into a settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a
party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement, compromise or consent
(x) includes an unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified
Person, from all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to
or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.
(d) Contribution.
If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an Indemnified Person or insufficient
in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in
lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as
a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits
received by the Ares Parties, on the one hand, and the Underwriters on the other, from the offering of the Shares pursuant to this Agreement
or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) but also the relative fault of the Ares Parties, on the one hand,
and the Underwriters on the other, in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities,
as well as any other relevant equitable considerations. The relative benefits received by the Ares Parties, on the one hand, and the
Underwriters on the other, in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same
respective proportions as the total net proceeds (before deducting expenses) received by the Ares Parties from the sale of the Shares
pursuant to this Agreement and the total underwriting discounts and commissions received by the Underwriters in connection therewith,
in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial offering price of the Share as set
forth on the cover of the Prospectus. The relative fault of the Ares Parties, on the one hand, and the Underwriters on the other, shall
be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission
or alleged omission to state a material fact relates to information supplied by the Ares Parties or by the Underwriters and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. Notwithstanding anything
to the contrary herein, neither the assumption of the defense of any pending or threatened proceeding in respect of which any Indemnified
Person is or could have been a party nor the payment of any fees or expenses related thereto shall be deemed to be an admission by the
Indemnifying Person that it has obligation to indemnify any person pursuant to this Agreement.
(e) Limitation
on Liability. The Ares Parties and the Underwriters agree that it would not be just and equitable if contribution pursuant to paragraph
(d) above were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or
by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (d) above.
The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph
(d) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred
by such Indemnified Person in connection with any such action or claim. Notwithstanding the provisions of paragraphs (d) and (e) of
this Section 7, in no event shall an Underwriter be required to contribute any amount in excess of the amount by which the total
underwriting discounts and commissions received by such Underwriter with respect to the offering of the Shares pursuant to this Agreement
exceeds the amount of any damages that such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’
obligations to contribute pursuant to paragraphs (d) and (e) of this Section 7 are several in proportion to their respective
purchase obligations hereunder and not joint.
(f) Non-Exclusive
Remedies. The remedies provided for in paragraphs (a) through (e) of this Section 7 are not exclusive and shall not
limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity.
8. Effectiveness
of Agreement. This Agreement shall become effective upon the execution and delivery hereof by the parties hereto.
9. Termination.
This Agreement may be terminated in the absolute discretion of the Representatives, by notice to the Company, if after the execution
and delivery of this Agreement and prior to the Closing Date or, in the case of the Option Shares, prior to the Additional Closing Date
(i) trading generally shall have been suspended or materially limited on or by any of the NYSE or the Nasdaq Stock Market, (ii) trading
of any securities issued or guaranteed by the Company shall have been suspended on any exchange or in any over-the-counter market, (iii) a
general moratorium on commercial banking activities shall have been declared by federal or New York State authorities or (iv) there
shall have occurred any outbreak or escalation of hostilities or any change in financial markets or any calamity or crisis, either within
or outside the United States, that, in the judgment of the Representatives, is material and adverse and makes it impracticable or inadvisable
to proceed with the offering, sale or delivery of the Shares on the Closing Date or the Additional Closing Date, as the case may be,
on the terms and in the manner contemplated by this Agreement, the Pricing Disclosure Package and the Prospectus.
10. Defaulting
Underwriter.
(a) If,
on the Closing Date or the Additional Closing Date, as the case may be, any Underwriter defaults on its obligation to purchase the Shares
that it has agreed to purchase hereunder on such date, the non-defaulting Underwriters may in their discretion arrange for the purchase
of such Shares by other persons satisfactory to the Company on the terms contained in this Agreement. If, within 36 hours after any such
default by any Underwriter, the non-defaulting Underwriters do not arrange for the purchase of such Shares, then the shall be entitled
to a further period of 36 hours within which to procure other persons satisfactory to the non-defaulting Underwriters to purchase such
Shares on such terms. If other persons become obligated or agree to purchase the Shares of a defaulting Underwriter, either the non-defaulting
Underwriters or the Company may postpone the Closing Date or the Additional Closing Date, as the case may be, for up to five full business
days in order to effect any changes that in the opinion of counsel for the Company or counsel for the Underwriters may be necessary in
the Registration Statement and the Prospectus or in any other document or arrangement, and the Company agrees to promptly prepare any
amendment or supplement to the Registration Statement and the Prospectus that effects any such changes. As used in this Agreement, the
term “Underwriter” includes, for all purposes of this Agreement unless the context otherwise requires, any person not listed
in Schedule 1 hereto that, pursuant to this Section 10, purchases Shares that a defaulting Underwriter agreed but failed to purchase.
(b) If,
after giving effect to any arrangements for the purchase of the Shares of a defaulting Underwriter or Underwriters by the non-defaulting
Underwriters and the Company as provided in paragraph (a) above, the aggregate number of Shares that remain unpurchased on the Closing
Date or the Additional Closing Date, as the case may be, does not exceed one-eleventh of the aggregate number of Shares to be purchased
on such date, then the Company shall have the right to require each non-defaulting Underwriter to purchase the number of Shares that
such Underwriter agreed to purchase hereunder on such date plus such Underwriter’s pro rata share (based on the number of Shares
that such Underwriter agreed to purchase on such date) of the Shares of such defaulting Underwriter or Underwriters for which such arrangements
have not been made.
(c) If,
after giving effect to any arrangements for the purchase of the Shares of a defaulting Underwriter or Underwriters by the non-defaulting
Underwriters and the Company as provided in paragraph (a) above, the aggregate number of Shares that remain unpurchased on the Closing
Date or the Additional Closing Date, as the case may be, exceeds one-eleventh of the aggregate amount of Shares to be purchased on such
date, or if the Company shall not exercise the right described in paragraph (b) above, then this Agreement or, with respect to any
Additional Closing Date, the obligation of the Underwriters to purchase Shares on the Additional Closing Date as the case may be, shall
terminate without liability on the part of the non-defaulting Underwriters. Any termination of this Agreement pursuant to this Section 10
shall be without liability on the part of the Company, except that the Company will continue to be liable for the payment of expenses
as set forth in Section 11 hereof and except that the provisions of Section 7 hereof shall not terminate and shall remain in
effect.
(d) Nothing
contained herein shall relieve a defaulting Underwriter of any liability it may have to the Company or any non-defaulting Underwriter
for damages caused by its default.
11. Payment
of Expenses.
(a) Whether
or not the transactions contemplated by this Agreement are consummated or this Agreement is terminated, the Company will pay or cause
to be paid all costs and expenses incident to the performance of its obligations hereunder, including without limitation, (i) the
costs incident to the authorization, issuance, sale, preparation and delivery of the Shares and any taxes payable in that connection,
(ii) the costs incident to the preparation, printing and filing under the Securities Act of the Registration Statement, the Preliminary
Prospectus, any Issuer Free Writing Prospectus, any Pricing Disclosure Package and the Prospectus (including all exhibits, amendments
and supplements thereto) and the distribution thereof, (iii) the fees and expenses of the Company’s counsel and independent
accountants, (iv) the reasonable and documented fees and expenses incurred in connection with the registration or qualification
of the Shares under the state or foreign securities or blue sky laws of such jurisdictions as the Representatives may designate and the
preparation, printing and distribution of a Blue Sky Memorandum (including the related reasonable and documented fees and expenses of
counsel for the Underwriters), (v) the cost of preparing certificates, if any, representing the Shares, (vi) the costs
and charges of any transfer agent and any registrar, (vii) all expenses and application fees incurred in connection with any filing
with, and clearance of the offering by, FINRA (including the related reasonable and documented fees and expenses of counsel for the Underwriters
in an amount not to exceed $10,000), (viii) all expenses incurred by the Company in connection with any “road show”
presentation to potential investors and (ix) all expenses and application fees related to the listing of the Shares on the NYSE.
(b) If
(i) this Agreement is terminated pursuant to Section 9, (ii) the Company for any reason fails to tender the Shares for
delivery to the Underwriters or (iii) the Underwriters decline to purchase the Shares because of any failure or refusal on the part
of any Ares Party to comply with the terms of this Agreement or the conditions of this Agreement are not satisfied, the Company agrees
to reimburse the Underwriters that have so terminated this Agreement with respect to themselves severally and are not in default hereunder
for all out-of-pocket costs and expenses (including the reasonable and documented fees and expenses of their counsel) actually incurred
by the Underwriters in connection with this Agreement and the offering contemplated hereby.
12. Persons
Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective
successors and the officers and directors and any controlling persons referred to herein, and the affiliates of each Underwriter referred
to in Section 7 hereof. Nothing in this Agreement is intended or shall be construed to give any other person any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision contained herein. No purchaser of Shares from any Underwriter
shall be deemed to be a successor merely by reason of such purchase.
13. Survival.
The respective indemnities, rights of contribution, representations, warranties and agreements of the Ares Parties and the Underwriters
contained in this Agreement or made by or on behalf of the Ares Parties or the Underwriters pursuant to this Agreement or any certificate
delivered pursuant hereto shall survive the delivery of and payment for the Shares and shall remain in full force and effect, regardless
of any termination of this Agreement or any investigation made by or on behalf of the Ares Parties or the Underwriters.
14. Certain
Defined Terms. For purposes of this Agreement, (a) except where otherwise expressly provided, the term “affiliate”
has the meaning set forth in Rule 405 under the Securities Act and (b) the term “business day” means any day other
than a day on which banks are permitted or required to be closed in New York City.
15. Miscellaneous.
(a) Authority
of the Representatives. Any action by the Underwriters hereunder may be taken by the Representatives on behalf of the Underwriters,
and any such action taken by the Representatives shall be binding upon the Underwriters.
(b) Notices.
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted
and confirmed by any standard form of telecommunication. Notices to the Underwriters shall be given to Morgan Stanley & Co. LLC,
1585 Broadway, New York, NY 10036, Attn: Equity Syndicate Desk, with a copy to Legal Department at the same address; BofA Securities,
Inc., One Bryant Park, New York, NY 10036, Attention: Syndicate Department, Email: , with a copy to ECM Legal, Email: ; J.P. Morgan Securities
LLC, 383 Madison Avenue, New York, New York 10179 (fax: ;), Attention: Equity Syndicate Desk; RBC Capital Markets, LLC Brookfield Place
200 Vesey Street, 10th Floor, New York, New York 10281, Attention: Equity Syndicate; and Wells Fargo Securities, LLC, West 33rd Street,
New York, New York 10001, Attention: Equity Syndicate Department (fax no: ;). Notices to the Company shall be given to Ares Management
Corporation, 2000 Avenue of the Stars, 12th Floor, Los Angeles, CA 90067 (fax: ; Attention: Chief Legal Counsel.
(c) Governing
Law. This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be governed by and construed
in accordance with the laws of the State of New York applicable to agreements made and to be performed in such state.
(d) USA
Patriot Act. In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)), the Underwriters are required to obtain, verify and record information that identifies the Underwriters’ respective clients,
including the Ares Parties, which information may include the name and address of the Underwriters’ respective clients, as well
as other information that will allow the Underwriters to properly identify the Underwriters’ respective clients.
(e) Submission
to Jurisdiction. Each of the parties hereto hereby submits to the exclusive jurisdiction of the U.S. federal and New York state courts
in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby. Each of the parties hereto waives any objection which it may now or hereafter have to the laying of venue of any
such suit or proceeding in such courts. Each of the parties hereto agrees that final judgment in any such suit, action or proceeding
brought in such court shall be conclusive and binding upon such party, and may be enforced in any court to the jurisdiction of which
such party is subject by a suit upon such judgment. Each of the parties hereto hereby represents and warrants that such authorized agent
has accepted such appointment and has agreed to act as such authorized agent for service of process. Each of the parties hereto further
agrees to take any and all action as may be necessary to maintain such designation and appointment of such authorized agent in full force
and effect for a period of seven years from the date of this Agreement.
(f) Waiver
of Jury Trial. Each of the parties hereto hereby waives any right to trial by jury in any suit or proceeding arising out of or relating
to this Agreement.
(g) Counterparts;
Electronic Signatures. This Agreement may be signed in counterparts (which may include counterparts delivered by any standard form
of telecommunication), each of which shall be an original and all of which together shall constitute one and the same instrument. Counterparts
may be delivered via facsimile, electronic mail (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform
Electronic Transactions Act, the New York Electronic Signatures and Records Act or other applicable law, e.g., www.docusign.com) or other
transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective
for all purposes to the fullest extent permitted by applicable law. For the avoidance of doubt, the foregoing also applies to any amendment,
extension or renewal of this Agreement.
(h) Amendments
or Waivers. No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom, shall
in any event be effective unless the same shall be in writing and signed by the parties hereto.
(i) Headings.
The headings herein are included for convenience of reference only and are not intended to be part of, or to affect the meaning or
interpretation of, this Agreement.
16. Recognition
of the U.S. Special Resolution Regimes.
(a) In
the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer
from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent
as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation,
were governed by the laws of the United States or a state of the United States.
(b) In
the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under
a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to
be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement
were governed by the laws of the United States or a state of the United States.
(c) As
used in this section:
1. “BHC
Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12
U.S.C. § 1841(k).
2. “Covered
Entity” means any of the following:
(i) a
“covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
(ii) a
“covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
(iii) a
“covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
3. “Default
Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2
or 382.1, as applicable.
4. “U.S.
Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder
and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.
[Signature Pages Follow]
If the foregoing is in accordance with your understanding, please
indicate your acceptance of this Agreement by signing in the space provided below.
|
Very truly yours, |
|
|
|
ARES MANAGEMENT CORPORATION |
|
|
|
By: |
/s/ Jarrod Phillips |
|
|
Name: |
Jarrod Phillips |
|
|
Title: |
Chief Financial Officer |
|
|
|
ARES HOLDINGS L.P. |
|
|
|
By: |
Ares Holdco LLC, its general partner |
|
|
|
By: |
/s/ Naseem Sagati Aghili |
|
|
Name: |
Naseem Sagati Aghili |
|
|
Title: |
Authorized Signatory |
|
|
|
Ares Holdco
LLC |
|
|
|
By: |
/s/ Naseem Sagati Aghili |
|
|
Name: |
Naseem Sagati Aghili |
|
|
Title: |
Authorized Signatory |
[Signature Page to Underwriting Agreement]
Accepted: As of the date first written above
MORGAN STANLEY & CO. LLC |
|
|
|
By: |
/s/ Jyri Wilska |
|
|
Authorized Signatory |
|
|
|
Name: |
Jyri Wilska |
|
Title: |
Managing Director |
|
|
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BofA Securities, Inc. |
|
|
|
By: |
/s/ Ray Craig |
|
|
Authorized Signatory |
|
|
|
Name: |
Ray Craig |
|
Title: |
Managing Director |
|
|
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J.P. Morgan
Securities LLC |
|
|
|
By: |
/s/ Apoorva Ramesh |
|
|
Authorized Signatory |
|
|
|
Name: |
Apoorva Ramesh |
|
Title: |
Vice President |
|
|
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RBC Capital
Markets, LLC |
|
|
|
By: |
/s/ Kapil Mehra |
|
|
Authorized Signatory |
|
|
|
Name: |
Kapil Mehra |
|
Title: |
Director |
|
|
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Wells Fargo
Securities, LLC |
|
|
|
By: |
/s/ Jaime Cohen |
|
|
Authorized Signatory |
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|
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Name: |
Jaime Cohen |
|
Title: |
Managing Director |
|
For themselves and on behalf of the several underwriters listed in
Schedule 1 hereto.
Schedule 1
Underwriter | |
Number of Underwritten Shares | |
Morgan Stanley & Co. LLC | |
| 530,000 | |
BofA Securities, Inc. | |
| 530,000 | |
J.P. Morgan Securities LLC | |
| 530,000 | |
RBC Capital Markets, LLC | |
| 530,000 | |
Wells Fargo Securities, LLC | |
| 530,000 | |
Total | |
| 2,650,000 | |
Annex A
a. Issuer Free Writing Prospectus
None.
b. Pricing Terms
| 1. | The initial public offering price per common share for the Shares shall
be $134.75. |
| 2. | The Company is selling 2,650,000 Common Shares. |
| 3. | The Company has granted an option to the Underwriters to purchase up to
an additional 397,500 Common Shares. |
Annex B
Pricing Term Sheet
Information set forth under “(b) Pricing Terms” on
Annex A.
Exhibit 5.1
![](https://www.sec.gov/Archives/edgar/data/1176948/000110465924071772/tm2416728d3_ex5-1img001.jpg)
|
2049
Century Park
East Los Angeles,
CA 90067 United
States
+1 310 552 4200
www.kirkland.com |
Facsimile:
+1 310 552 5900 |
June 14, 2024
Ares Management Corporation
2000 Avenue of the Stars
12th Floor
Los Angeles, CA 90067
Ladies and Gentlemen:
We are providing this letter
in our capacity as counsel to Ares Management Corporation, a Delaware corporation (the “Company”), in connection with
the preparation and filing with the Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b) under
the Securities Act of 1933, as amended (the “Securities Act”), of a prospectus supplement, dated June 12, 2024
(the “Prospectus Supplement”) to the prospectus, dated February 27, 2023, included as part of a registration statement
on Form S-3 (File No. 333-270053), as amended (the “Registration Statement”), relating to the issuance and
sale by the Company of up to 3,047,500 shares of Class A common stock, par value $0.01 per share (the “Common Stock”)
of the Company (including up to 397,500 shares of Common Stock that may be sold pursuant to the exercise of the underwriters’ option
to purchase additional shares of Common Stock), pursuant to an Underwriting Agreement, dated June 12, 2024 (the “Underwriting
Agreement”), among the Company, Ares Holdings L.P., a Delaware limited partnership, Ares Holdco LLC, a Delaware limited liability
company, and the underwriters named therein.
In connection therewith, we
have examined originals, or copies certified or otherwise identified to our satisfaction, of such documents, corporate records and other
instruments as we have deemed necessary for the purposes of this opinion, including, (i) the second amended and restated certificate
of incorporation of the Company in the form filed Exhibit 3.1 to the Registrant’s Current Report on Form 10-Q (File No. 001-36429)
filed with the SEC on May 6, 2021, (ii) the bylaws of the Company in the form filed as Exhibit 99.4 to the Registrant’s
Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018, (iii) resolutions of the
Board of Directors of the Company, (iv) the Underwriting Agreement, (v) the Registration Statement, together with the exhibits
filed as a part thereof and including the documents incorporated by reference therein and (vi) the Prospectus Supplement, including
any documents incorporated by reference therein.
For purposes of this opinion,
we have assumed the authenticity of all documents submitted to us as originals, the conformity to the originals of all documents submitted
to us as copies and the authenticity of the originals of all documents submitted to us as copies. We have also assumed the legal capacity
of all natural persons, the genuineness of the signatures of persons signing all documents in connection with which this opinion is rendered,
the authority of such persons signing on behalf of the parties thereto other than the Company and the due authorization, execution and
delivery of all documents by the parties thereto other than the Company. We relied upon statements and representations of officers and
other representatives of the Company and others as to factual matters.
Based upon and subject to
the foregoing limitations, qualifications, exceptions and assumptions expressed herein, we are of the opinion, assuming no change in the
applicable law or pertinent facts after the Registration Statement was declared effective, that the shares of Common Stock are (i) duly
authorized and (ii) when the shares of Common Stock are registered by the Company’s transfer agent and delivered against payment
of the agreed consideration therefor in accordance with the Underwriting Agreement, the shares of Common Stock will be validly issued
and fully paid and holders of the Common Stock will have no obligation to make payments or contributions to the Company or its creditors
solely by reason of their ownership of the Common Stock.
Beijing Boston Chicago Dallas Hong Kong Houston London Munich New York Palo Alto Paris San Francisco Shanghai Washington, D.C.
![](https://www.sec.gov/Archives/edgar/data/1176948/000110465924071772/tm2416728d3_ex5-1img001.jpg)
Our opinion expressed above
is subject to the qualifications that we express no opinion as to the applicability of, compliance with, or effect of any laws except
the General Corporation Law of the State of Delaware (including the statutory provisions, all applicable provisions of the Delaware constitution
and reported judicial decisions interpreting the foregoing).
For purposes of rendering
our opinion expressed above, we have assumed that (i) the Registration Statement remains effective during the offer and sale of the
shares of Common Stock; and (ii) at the time of the issuance, sale and delivery of each share of Common Stock (x) there will
not have occurred any change in law affecting the validity, legally binding character of such share of Common Stock and (y) the issuance,
sale and delivery of such share of Common Stock, the terms of such share of Common Stock and compliance by the Company with the terms
of such share of Common Stock will not violate any applicable law, any agreement or instrument then binding upon the Company or any restriction
imposed by any court or governmental body having jurisdiction over the Company.
We hereby consent to the filing
of this opinion with the SEC as Exhibit 5.1 to the Company’s Current Report on Form 8-K. We also consent to the
reference to our firm under the heading “Legal Matters” in the Prospectus Supplement constituting part of the Registration
Statement. In giving this consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7
of the Securities Act or the rules and regulations of the SEC.
We do not find it necessary
for the purposes of this opinion, and accordingly we do not purport to cover herein, the application of the securities or “Blue
Sky” laws of the various states to the issuance and sale of the shares of Common Stock.
This opinion is limited to
the specific issues addressed herein, and no opinion may be inferred or implied beyond that expressly stated herein.
This opinion is furnished
to you in connection with the filing of the Prospectus and in accordance with the requirements of Item 601(b)(5) of Regulation S-K
promulgated under the Securities Act, and is not to be used, circulated, quoted or otherwise relied upon for any other purpose.
| | Very truly yours, |
| | |
| | /s/ Kirkland & Ellis LLP |
| | |
| | KIRKLAND & ELLIS LLP |
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