Ares Commercial Real Estate Corporation April 2018

Confidential – Not for Publication or Distribution Disclaimer

Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, which may relate to future events or the future performance or financial condition of Ares Commercial Real Estate Management LLC (“ACREM”), a subsidiary of Ares Management, L.P. (“Ares LP”), Ares LP, certain of their subsidiaries and certain funds and accounts managed by ACREM, Ares LP and/or their subsidiaries, including, without limitation, Ares Commercial Real Estate Corporation (“ACRE”). These statements are not guarantees of future results or financial condition and involve a number of risks and uncertainties. Actual results could differ materially from those in the forward-looking statements as a result of a number of factors, including the returns on current and future investments, rates of repayments and prepayments on ACRE’s mortgage loans, availability of investment opportunities, ACRE’s ability to originate additional investments and completion of pending investments, the availability of capital, the availability of cost financing, market trends and conditions in ACRE’s industry and the general economy, the level of lending and borrowing spreads, commercial real estate loan volumes, government-sponsored enterprise activity and other risks described from time to time in ACRE’s and ARES LP’s filings within the Securities and Exchange Commission (“SEC”). Any forward- looking statement, including any contained herein, speaks only as of the time of this release and none of ACRE, ARES LP nor ACREM undertakes any duty to update any forward-looking statements made herein. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws.

Ares LP is the parent to several registered investment advisers, including Ares Management LLC (“Ares Management”) and ACREM. Collectively, Ares LP, its affiliated entities, and all underlying subsidiary entities shall be referred to as “Ares” unless specifically noted otherwise.

The information contained in this presentation is summary information that is intended to be considered in the context of ACRE’s SEC filings and other public announcements that ACRE, ACREM or Ares may make, by press release or otherwise, from time to time. ACRE, ACREM and Ares undertake no duty or obligation to publicly update or revise the forward-looking statements or other information contained in this presentation. These materials contain information about ACRE, ACREM and Ares, and certain of their respective personnel and affiliates, information about their respective historical performance and general information about the market. You should not view information related to the past performance of ACRE, ACREM or Ares or information about the market, as indicative of future results, the achievement of which cannot be assured.

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

In addition, in light of the various investment strategies of such other investment partnerships, funds and/or pools, it is noted that such other investment programs may have portfolio investments inconsistent with those of the investment vehicle or strategy discussed herein.

These materials may contain confidential and proprietary information, and their distribution or the divulgence of any of their contents to any person, other than the person to whom they were originally delivered and such person’s advisers, without the prior consent of ACRE, ACREM or Ares, as applicable, is prohibited. You are advised that United States securities laws restrict any person who has material, non-public information about a company from purchasing or selling securities of such company (and options, warrants and rights relating thereto) and from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. You agree not to purchase or sell such securities in violation of any such laws.

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

This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s. Such information has not been independently verified and, accordingly, ACRE makes no representation or warranty in respect of this information. Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.

REF: RE-00097

Confidential – Not for Publication or Distribution 2

Ares Commercial Real Estate Corporation Changed last highlight to consistent growth Real Estate Investment Invest in Value-Add, Floating Rate in dividends Trust with Broad Product & Commercial Mortgage Loans Extensive Credit Capabilities

Strong Balance Sheet with Self-Originate Loans Through Six Diverse Sources of Local Offices Across the U.S. Match Funding

Key Investment Highlights

Attractive Dividend Experienced Team Positioned To Benefit Diversified Portfolio(3) Consistent Growth in Derived From With Strong Track From Rising Interest $1.7 billion portfolio Dividends Record (4) Portfolio Net Interest invested across diverse Rates Annual dividend coverage $4.0 billion committed and Income properties in primary and ~$0.13 per share additional from Core Earnings for the no losses since inception in Dividend yield of ~9%(1) secondary liquid markets annual earnings per 100 last 3 years 2012(2) bps rise in LIBOR

ACRE is Strengthened by its Sponsorship From Ares Management and the Ares Real Estate Platform

Strong Access to Accretive Extensive Sourcing Capabilities Informational Advantages Sources of Capital

Proven Credit and Asset Broad Product Expertise Ownership/Strong Sponsorship Management Capabilities

Data as of December 31, 2017 unless otherwise indicated. 1.There is no assurance that dividends will continue at these levels or at all. Represents closing price as of April 2, 2018 and based on annualized Q1-2018 dividend. 2.Past performance is not indicative of future results. 3.Diversification does not assure profit or protect against market loss. 4.The increase in annual net interest earnings is calculated assuming loans held for investment and corresponding liabilities do not change over the course of the quarterly period and an increase of 100 basis points in 30 day Libor occurs on the first day of the quarterly period. Confidential – Not for Publication or Distribution 3 Overview of Ares Management Ares Management, L.P. is a leading global alternative asset manager with three distinct but complementary investment groups

As of December 31st, 2017

Founded: 1997 AUM(1): $106bn Employees: 1,000+ Investment Professionals: ~400 Global Offices: 15+ Listing: NYSE – Market Capitalization(2) $4.5bn

Assets Under $71.7 billion $24.5 billion $10.2 billion Management High Yield Bonds Corporate Private Equity Syndicated Loans Real Estate Private Equity Strategies U.S. Power & Energy Infrastructure Structured Credit Real Estate Debt Special Situations Direct Lending Gross Annualized Returns Since Inception except Europe Gross Asset Level IRRs Gross Annualized Net Annual Gross IRRs Based on Actual and U.S. Direct Lending Asset Level Realized Gross IRRs ITD Since Inception IRR Since Inception Return On Equity and Projected Cash Flows 24% for ACRE since IPO 17% 15% 15% 14% 14% 13% 10% 8% Historical 5% 7% Returns

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

NET PERFORMANCE RETURNS. Credit: 5% for U.S. Syndicated Loan funds, 7% for U.S. High Yield funds, and 13% for Structured Credit. Private Equity: 17% for ACOF I-IV Aggregate, 9% for EIF Aggregate and 8% for Special Situations. Real Estate: 10% for U.S. Equity, 7% for U.S. Debt and 8% for Europe Equity 1. As of December 31, 2017, AUM amounts include funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation and a registered investment adviser. 2. Market Capitalization as of 3/28/2018; calculated using $20.77 share price and 217,835,221 common shares outstanding as of March 8, 2018 (assumingConfidential exchange – of Not all outstandingfor Publication Ares or Operating Distribution Group units for common shares). 4 Please refer to the Performance Notes at the end of this presentation for additional definitions, information and notes

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

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

Advantages Accolades

Proprietary Access to Real-Time Cycle-Tested Investment track records of 15+ Relationship Market and years in both U.S. and European real Results Deal Flow Corporate Trends estate private equity Top 15 Real Estate Manager Based on 2012-17 Equity Raised (3)

Leading Platform of Real Estate Strategies (2) REAL ESTATE PRIVATE EQUITY REAL ESTATE DEBT U.S. Europe U.S. $4.6 billion $2.7 billion $2.9 billion Repositioning, Lease-up, Redevelopment, Repositioning, Lease-up, Redevelopment, Senior Debt Development, Distress Development, Distress Mezzanine Debt 65 investments 43 investments 64 investments Multifamily, Office, Student Housing, Self Storage, Multifamily, Industrial, Hospitality, Retail, Office, Industrial and Residential Industrial, Hospitality, Retail Office and Retail and Healthcare

1. AUM amounts are as of December 31, 2017. Ares Real Estate Group’s history described herein includes the history of AREA Property Partners (“AREA”) and its key principals prior to the Ares acquisition of AREA in July 2013. 2. As of December 31, 2017. 3. Please refer to the Performance Notes at the end of this presentation for additional definitions, information and notes. Confidential – Not for Publication or Distribution 5 Ares Management Sponsorship Provides Significant Advantages Ares sponsorship provides informational advantages, deep servicing capabilities and other resources

Diligence & Informational Deep Ares Sponsorship   Advantages  Sourcing Capabilities

Invested over $15 billion of equity in +9% 450+ financial sponsor relationships of ACRE’s stock owned by 700+ deals since 1993 across the firm with 90+ dedicated to Management/Board as well as owners real estate and affiliates of Ares

Owner, investor, or lender to over: (1)

Over 312,000 Complementary pools of capital Facilitate relationships/access to multifamily units expanding ACRE’s market presence warehouse lines, securitization sources and sources of leveragable capital ~170 million sq. feet office, industrial, mixed use & retail

38,600 70 Can provide significant cost savings keys of hotel properties real estate debt and equity on transaction executions professionals

Large in-house research team covering 60 industries

Data as of December 31, 2017, unless otherwise noted. 1. As of December 31, 2017. Ares Management LLC acquired AREA Property Partners (“AREA”) on July 1, 2013. Information pertaining to historical activities of the Ares Real Estate Group includes activities of AREA or its affiliates prior to the full integration of AREA into the Ares platform.

Confidential – Not for Publication or Distribution 6 ACRE’s Proven Business Model Positioned to Generate Value Replaced Consistent Growth across key ACRE leverages its market position as a leading flexible capital provider to originate high quality metrics with benefit commercial real estate loans that generate predictable income resulting in attractive dividends for rising rates

= Strong Shareholder Value Proposition*

~9% Dividend Yield(1) ~0.85x Price to Book Value(2)

Data as of December 31, 2017 unless otherwise indicated. * There is no assurance that dividends will continue at these same levels or at all. 1. Represents closing price as of April 2, 2018 as compared to the annualized Q1-2018 dividend. 2. Represents closing price as of April 2, 2018 as compared to the book value per share as of December 31, 2017. Confidential – Not for Publication or Distribution 7 Attractive Market Opportunity REITs and other non-traditional lenders are gaining market share in a growing market. Record supply of private equity dry powder & upcoming loan maturities create ongoing demand for flexible debt capital providers

REITs and Other Non-Traditional Lenders Increasing Share of Growing Real Estate Debt Market (1)

Commercial and Multifamily Debt Outstanding ($ trillions) 4.0 REITs and other non- $3.2 traditional lenders 3.0 represent just 6% of the $2.4 $3.2 trillion commercial 2.0 31% growth in and multifamily real REITs and other non- 1.0 estate debt market traditional lenders 0.0 2012 2017 Banks Agency / GSEs CMBS Insurance Federal & Related REITs & Other

Future Drivers of Demand for Flexible Debt Capital Providers

U.S. CRE Loan Maturities (2) Record Supply of Private Equity Dry Powder (3)

($ billions) ($ billions) $200 $400

$300

$200 $150

$100

$0 $100 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 1. MBA Q4-17 Commercial / Multifamily Mortgage Debt Outstanding. 2. TreppConfidential LLC from Federal – Not for Reserve Publication Fourth or Quarter Distribution 2017 Flow of Funds Data as of December 2017. 8 3. Dry powder real estate equity funds, excluding real estate debt and distressed - Preqin February 2018. National Direct Origination Platform Broad capabilities combined with direct origination focus supports sourcing and structuring of attractive investments

• Extensive National footprint (1) o Provides broader market view to select best relative value opportunities. We closed ~5% of commitments evaluated over the last twelve East (2) months since 12/31/2017 $774 million o Enables strong portfolio construction given Midwest (2) West (2) increased diversification $834 million Chicago, IL $793 million New York, NY o Can lead to greater control of pricing and terms o Believed to improve credit outcomes Los Angeles, CA • Originated approximately $4.0 billion(2) of real Southwest (2) Atlanta, estate debt with no losses $751 million Southeast (2) GA o Disciplined property focus: Focused on Dallas, TX $864 million multifamily and commercial properties in major liquid markets o Strong repeat sponsorship: ~ 40% of all Ares Real Estate Group Office commitments since inception have been to (~20 investment professionals repeat borrowers, reflective of deepening our in the aggregate)(1) relationships with the strongest sponsors(2)

As of December 31, 2017 unless otherwise indicated. 1. Includes Ares principal and originating offices where real estate activities take place as of December 2017. 2. Real estate debt originations (commitment balance) since inception through December 31, 2017.

Confidential – Not for Publication or Distribution 9 Focus on Quality Properties in Top Markets

Targeted Investments and Investment Strategy

• Direct origination of senior, floating rate CRE  loans • Target top 30 and (generally) up to the top 50  MSAs in the U.S.

• Focus on major, liquid markets with positive  market dynamics

• Expertise in wide range of property types with  emphasis on minimizing volatility

• Prioritize institutional-quality properties and  sponsors • Senior loans comprise the majority of the  investment portfolio

Confidential – Not for Publication or Distribution 10 Illustrative Transactions of ACRE Originated Loans(1)

Student Housing Multifamily Student Housing Lodging Multifamily Multifamily Texas Texas Texas California New York Utah

$24,000,000 $42,700,000 $41,000,000 $40,000,000 $30,150,000 $63,750,000 Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan

Industrial Office Office Multifamily Multifamily Multifamily Minnesota Illinois California New York Florida Texas

$52,850,000 $82,000,000 $3,116,000 $17,300,000 $19,175,000 $27,500,000 Senior Loan Senior Loan Mezzanine Senior Loan Senior Loan Senior Loan

1. The transactions presented in this section are shown for illustrative purposes only and are the twelve most recent ACRE transactions through December 31, 2017 but are not necessarily representative of all transactions of a given type or of investments generally and are intended to be illustrative of some of the types of investments that may be made by ACRE in regard to real estate private debt transactions. Such transactions are not necessarily representative of the investment opportunities that will be available to ACRE in the future. In addition, past performance is not indicative of future results.

Confidential – Not for Publication or Distribution 11

Diverse and Strong Performing Senior Loan Portfolio(1)

Summary Unleveraged Effective Yield (2,3) . Investment portfolio of $1.7 billion in outstanding principal Senior Portfolio . Portfolio total weighted average unleveraged effective yield 8% of 6.3%(2) 7% 6.3% 6.4% 6.4% 6.2% 6.2% 6.3% 5.7% 5.9% 6.0% 6.0% . For the $1.9 billion of loans exited since inception through 6% December 31, 2017, the average cash flow growth on the 5% underlying properties was approximately 20% during our 4% loan commitment period 3% 2% . Target debt to equity of ~3.0x(4) 1% 0% Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Loan Positions(3) Portfolio Diversification(3,5)

Subordinated Debt & Retail Mixed-use 1% Preferred Equity Industrial 4% Southeast Investments 5% 18% 4% Hotel Southwest 6% Multifamily 23% Student 36% Housing 10% Mid-Atlantic/ Northeast Self Storage 19% West 11% 21% Office Midwest Senior Mortgage 27% 19% Loans 96%

1. Data as of December 31, 2017. 2. Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premium or discount) and assumes no dispositions, early prepayments or defaults. The Total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2017 as weighted by the Outstanding Principal balance of each loan. 3. Calculated based on outstanding principal balance. 4. The use of leverage magnifies the potential for gain or loss on the amount invested and may increase the risk of investments. Target leverage depends on asset mix. 5. Diversification does not assure profit or protect against loss. Confidential – Not for Publication or Distribution 12 Deep Sources of Diverse Funding Enhances ACRE’s Portfolio

Diverse Sources of Liquidity from Banks, Insurance Cos, Disciplined Approach to Funding Capital Markets Providers and Private Capital(1)(2)(5)

Capital Markets • Match funded $186 $273 Securitization – FL3 ◦ Loan portfolio has weighted $50 Term Loan average remaining life of approximately 2.0 years(3) $140 ◦ The Company’s financing $110 Banks agreements have a weighted Wells Fargo Facility average remaining term of $125 Citibank Facility approximately 3.2 years assuming BAML Facility the Company exercises available $180 (4) UBS Facility renewal options CNB Facility $250 U.S. Bank Facility • Diverse sources of liquidity provide additional strength to the Company’s Insurance competitive position

$500 MetLife Facility ◦ $1.8 billion of capacity(2)

1. Dollars in millions of borrowing capacity. Represents total commitments. 2. Capacity data is as of December 31, 2017. Ability to draw on available capacity is subject to available collateral and lender approvals. 3. Data as of December 31, 2017. 4. Comprised of Secured Funding Agreements and Term Loan as of December 31, 2017 that are used for funding ACRE’s loans held for investment. 5. The weighted average borrowings was $1.235 billion for the quarter ended December 31, 2017 and $1.122 billion for the year ended December 31, 2017. Confidential – Not for Publication or Distribution 13 Loan Portfolio has been Positioned to Benefit from Higher Rates ACRE has a match funded, floating rate, held for investment portfolio Changed to 4.00% all in effective yield Hypothetical Example of the Impact of Rising Rates on a 99% Floating Rate Portfolio $40 million Senior Loan

Fixed Rate Assumptions Libor of Libor of 1% • $40mm Senior 1.50% 2.50% Loan ‒ Earns L + 4.00% Senior Loan $40 mm $40 mm (all-in effective Interest Rate 5.5% 6.5% yield) Interest Income $2.20 mm $2.60 mm • Financed with $28mm warehouse Warehouse Line $28 mm $28 mm line (70% advance Interest Rate 3.5% 4.5% rate) ‒ Pays L + 2.00% Interest Expense $0.98 mm $1.26 mm Floating Rate 99% • $12 mm net equity ‒ Net Interest Net Interest Margin $1.22 mm $1.34 mm Margin of 2.00% Gross ROE 10.2% 11.2% on $12mm Equity

On a pro forma basis, a 100 basis point increase in Libor is calculated to result in an increase in annual net interest earnings by $0.13 per share (1,2,3)

1. The analysis detailed herein represents ACRE’s perspective and is merely a mathematical illustration. These metrics are shown for illustrative purposes only and the terms and characteristics of such transactions are not necessarily indicative of every type of transaction entered into or arranged by ACRE. Any future performance may differ from those discussed herein. Accordingly, no representation or warranty is made in respect of this information. The gross ROEs shown above are not a reliable indicator of future performance. Actual returns will be reduced by any applicable management fees and other expenses. 2. Represents the annualized pro forma impact for the three month period ending 12/31/2017. Assumes (1) ACRE’s loans held for investment and corresponding liabilities during the fourth quarter of 2017 do not change over the course of the annualized period (e.g., no prepayments, dispositions or defaults) and (2) ACRE does notConfidential incur any – incremental Not for Publication expenses. or Distribution 14 3. $0.13 per share is based on 28.599 million shares as of 12/31/17.

Updated calculation to eliminate increase Tax Reform has Made ACRE’s Dividend Yield More Attractive in dividend

We anticipate recent tax reform to enhance ACRE’s pre-tax equivalent dividend yield by ~150bps Added footnote on tax advice and • In addition to reducing the top individual income tax rate, we anticipate the Tax Cuts and Jobs Act provides a 20% deduction applicability to direct on REIT dividend income(1) investors

- This reduces the maximum tax rate on REIT dividends from the current highest marginal individual tax rate of 37% to

29.6% • Therefore, we expect the pre-tax equivalent dividend yield will be enhanced by approximately 150bps

Increase in Pre-Tax Equivalent Dividend Yield

15%

10.7% 10% 9.2%

0% Pre-Tax Reform Dividend Yield(2) Post-Tax Reform Pre-tax Equivalent Dividend Yield(3) Note: There is no assurance that dividends will continue at these levels or at all. 1. We believe the deduction in dividend income is only for those securities that are directly held by an investor. This does not constitute tax advice to, and should not be relied upon by investors, who should consult their own tax advisors regarding the matters discussed herein, and the tax consequences of an investment in ACRE. 2. Assumptions represent closing price as of April 2, 2018 and annualized Q1-18 dividend of $0.28 per share 3. Assumptions represent closing price as of April 2, 2018 and annualized Q1-18 dividend of $0.28 per share. Includes reduction in tax rate and 20% deduction on REIT dividend income, reducing the current highest marginal individual tax rate of 37% to 29.6%. Confidential – Not for Publication or Distribution 15 Changed third section / Eliminated growth in Summary metrics

1 Direct Originator With Key Competitive Advantages • Broad national footprint to directly originate and source customized lending solutions • Highly experienced team with extensive credit capabilities • Strong balance sheet with diverse sources of match funding • Benefits from sponsorship by Ares Management

2 Executing on Strategic Initiatives

• Augmenting originations staff and expanding geographic footprint to enhance originations • Further aligning with the broader Ares real estate platform to grow sourcing and diligence capabilities

3 Potential to Improve Profitability

• Well positioned to benefit from increases in higher Libor rates • Continuing to improve funding costs and capital efficiency to further enhance profitability

As of December 31, 2017. Confidential – Not for Publication or Distribution 16 Appendix

Confidential – Not for Publication or Distribution Appendix Table of Contents

Illustrative Transactions & Portfolio Details I Select Financial Statements II Performance Notes III

Confidential – Not for Publication or Distribution 18 I. Illustrative Transactions & Portfolio Details

Confidential – Not for Publication or Distribution Office – Colorado Sponsor completed ~$3mm in renovations and increased avg. rental rates Investment Overview: • $21.0mm senior loan for the acquisition of a two building office complex located in the Greenwood Plaza submarket of Colorado • The Sponsor’s business plan was to lease up vacant space at market rents and to successfully renew and mark to market space that was rolling in the next three years • Sponsor planed to upgrade the lobby, corridors and bathrooms, and reposition the asset as a desirable small tenant Class A- property

Investment Merits: Collateral Overview • Strength of the submarket Property Type: Office • Strong sponsor that specialized in Class B/A- office Size: 171,189 SF Year Built: 1982 (Renovated 2007) Identified Risks: • Business plan execution(1) Loan Terms • Rollover/Leasing Risk(2) Commitment Date: October 2014 Ares “Edge”: Loan size: $21.0 million • Experience as owner, investor or lender to over 71 million Term/Amortization: 3+1+1 years / IO sf of Office allowed team to evaluate the sponsor business plan, and price and structure loan to compensate for and Pricing: Floating L+395 mitigate risks

These loans represent the most recently realized senior loans for each property type as of 12/31/17. The transactions detailed herein represent historical transactions of ACRE involving senior loans issued in support of a borrower’s transitional business plan. In all cases, the loans were fully repaid. These transactions are shown for illustrative purposes only and the terms and characteristics of such transactions are not necessarily indicative of every type of transaction entered into or arranged by ACRE. Any future portfolio investment may differ from those discussed herein. Portfolio or investment information in this presentation may not have been independently verified and may reflect normalized or adjusted amounts. Accordingly, no representation or warranty is made in respect of this information. For information about other realized senior loans, please contact us. 1. Business plan execution risk refers to the risk of the sponsor being unable to carry out their proposed property improvement and /or revenue enhancing plans. 2.Rollover/leasing risk refers to the risk of current tenant(s) vacating at lease maturity and the inability of the sponsor to re-lease the space at market pricing and/or on a timely basis. Confidential – Not for Publication or Distribution 20 Portfolio – (Mostly Student Housing) Investment Portfolio of 22 student housing and apartment assets across 14 states Investment Overview: • Provided a $170 million of preferred equity investment to support the financing of a 22-asset portfolio which consists of class A student housing assets to major universities, apartment properties, a medical office building and a self storage portfolio • The borrower’s plan was to increase occupancy of the student housing assets, lease up apartment properties and exit the properties over the next two to four years

Investment Merits: • High quality sponsor with deep student housing experience Collateral Overview • Well located Property Type: Various • Enhanced de-risking from cross collateralized portfolio

Location: U.S. (14 States) Identified Risks: • Business plan execution(1) Loan Terms • Monitoring new supply of competing properties Investment size: $170 million Term/Amortization: 10 years Ares “Edge”: • Approached by sponsor to help structure a capital solution. Pricing: Fixed Out speed, execution, national footprint and ability to underwrite allowed us to close and structure an attractive investment to both parties

These loans represent the most recently realized subordinate student lending investment as of 12/31/17. The transactions detailed herein represent historical transactions of ACRE involving loans issued in support of a borrower’s transitional business plan. In all cases, the loans were fully repaid. These transactions are shown for illustrative purposes only and the terms and characteristics of such transactions are not necessarily indicative of every type of transaction entered into or arranged by ACRE. Any future portfolio investment may differ from those discussed herein. Portfolio or investment information in this presentation may not have been independently verified and may reflect normalized or adjusted amounts. Accordingly, no representation or warranty is made in respect of this information. For information about other realized loans, please contact us. 1. Business plan execution risk refers to the risk of the sponsor being unable to carry out their proposed property improvement and /or revenue enhancing plans. Confidential – Not for Publication or Distribution 21 Multifamily – New York

Sponsor successfully executed business plan and outperformed exit value target Investment Overview: • $17.3mm senior loan for the acquisition of a 35 unit apartment building located in the Chelsea submarket of Manhattan • Units were comprised of 2 rent controlled units, 24 rent stabilized units and 9 fair market units • The Sponsor’s business plan was to maximize rents by renovating fair market units with high end finishes, and by renovating rent stabilized and controlled units under a buyout or destabilization plan

Investment Merits: • Strength of location/submarket Collateral Overview • Strong sponsor with large equity investment Property Type: Multifamily Size: 35 units Identified Risks: • Business plan execution(1) Year Built: 1950

Loan Terms Ares “Edge”: • Experience as owner, investor or lender to over 300,000 Commitment Date: August 2014 multi-family units allowed team to evaluate the sponsor Loan size: $17.3 million business plan, and price and structure loan to compensate for and mitigate risks Term/Amortization: 3+1+1 years / IO • New York based origination team had deep knowledge of Pricing: Floating L+385 the NYC apartment market

Portfolio Statistics

Outstanding Principal $1.7 billion

Total Weighted Average Unleveraged Effective Yield(2) 6.3%

Senior Mortgage Loans Wtd. Average Unleveraged Effective Yield(2) 6.2%

Subordinated Debt & Preferred Equity Investments Wtd. Average Unleveraged Effective Yield(2) 10.8%

Total Wtd. Average Remaining Life (Years) 2.0

Senior Mortgage Loans 1.9

Subordinated Debt & Preferred Equity Investments 3.4

1. Data as of December 31, 2017. 2. Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premium or discount) and assumes no dispositions, early prepayments or defaults. Unleveraged Effective Yield for each loan is calculated based on LIBOR as of December 31, 2017 or the LIBOR floor, as applicable. The Total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2017 as weighted by the Outstanding Principal balance of each loan.

Confidential – Not for Publication or Distribution 23 Portfolio Detail Outstanding Principal Carrying Amount Unleveraged Loan Type Location ($mm)(1) ($mm)(1) Interest Rate Effective Yield(2) Maturity(3) Payment Terms(4) Senior Mortgage Loans Various(5) Diversified $134.1 $133.7 L+4.35% 6.6% Oct 2018 I/O Office TX 96.9 96.0 L+3.60% 5.7% July 2020 I/O Multifamily FL 89.7 89.4 L+4.75% 6.9% Sep 2019 I/O Various(6) Diversified 82.3 82.0 L+4.75% 7.0% Oct 2018 I/O Mixed-use NY 65.6 65.4 L+4.16% 6.2% Apr 2019 I/O Multifamily UT 62.0 61.5 L+3.25% 5.1% Dec 2020 I/O Office IL 60.4 59.8 L+3.75% 5.9% Dec 2020 I/O Office IL 58.5 58.2 L+3.99% 6.0% Aug 2019 I/O Office CA 57.7 57.4 L+4.40% 6.5% Aug 2019 I/O Office CO 54.0 53.5 L+4.15% 6.1% June 2021 I/O Multifamily FL 53.8 53.3 L+3.65% 5.6% Mar 2021 I/O Industrial MN 51.6 51.0 L+3.15% 5.2% Dec 2020 I/O Office NJ 48.5 48.1 L+4.65% 6.8% July 2020 I/O Multifamily FL 45.4 45.2 L+4.75% 6.9% Sep 2019 I/O Multifamily TX 42.7 42.4 L+3.30% 5.2% Dec 2020 I/O Student Housing CA 41.8 41.4 L+3.95% 6.1% July 2020 I/O Student Housing TX 40.1 39.7 L+4.75% 6.9% Jan 2021 I/O Hotel CA 40.0 39.6 L+4.12% 6.0% Jan 2021 I/O Student Housing NC 38.7 38.4 L+4.75% 7.4% Feb 2019 I/O Hotel NY 38.6 38.6 L+4.75% 6.7% June 2018 I/O Hotel MI 35.2 35.2 L+4.15% 5.7% July 2018(7) I/O Multifamily MN 34.1 33.9 L+4.75% 6.8% Oct 2019 I/O Industrial OH 32.2 32.2 L+4.20% 6.1% May 2018 P/I(8) Office OR 32.0 31.9 L+3.75% 5.7% Oct 2018 I/O Multifamily NY 31.3 31.2 L+4.55% 6.6% Feb 2019 I/O Multifamily NY 29.6 29.5 L+3.75% 5.6% Oct 2018(9) P/I(8) Multifamily NY 29.4 29.1 L+3.20% 5.1% Dec 2020 I/O Multifamily TX 27.5 27.3 L+3.20% 5.3% Oct 2020 I/O Multifamily TX 26.3 26.2 L+3.80% 5.5% Jan 2019 I/O Multifamily CA 25.5 25.3 L+3.85% 5.9% July 2020 I/O Student Housing AL 24.1 23.9 L+4.45% 6.6% Feb 2020 I/O Student Housing TX 24.0 23.8 L+4.10% 6.2% Jan 2021 I/O Multifamily CA 22.3 22.2 L+3.90% 5.8% Mar 2021 I/O Multifamily FL 22.2 22.1 L+4.25% 6.5% Feb 2019 I/O Office PA 19.6 19.5 L+4.70% 6.7% Mar 2020 I/O Office FL 18.4 18.3 L+4.30% 6.4% Apr 2020 I/O Multifamily FL 18.3 18.2 L+4.00% 5.9% Nov 2020 I/O Multifamily NY 16.3 16.3 L+4.35% 6.2% Nov 2018 I/O Multifamily CA 13.7 13.5 L+3.80% 5.8% July 2020 I/O Subordinated Debt and Preferred Equity Investments Multifamily NY 33.3 33.2 L+8.07% 9.9% Jan 2019 I/O Office NJ 17.0 16.3 12.00% 12.8% Jan 2026 I/O(8) Office CA 2.6 2.6 L+8.25% 10.0% Nov 2021 I/O Total/Weighted Average $1,737.3 $1,726.3 6.3%

Past performance is not indicative of future results. Above represents the sum total of ACRE’s holding as of December 31, 2017 as reported to SEC in 10-K for ACRE. Please see page 25 for relevant footnote disclosures. Confidential – Not for Publication or Distribution 24 Notes to Ares Originated Portfolio of Loans

1. The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs. 2. Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premium or discount) and assumes no dispositions, early prepayments or defaults. Unleveraged Effective Yield for each loan is calculated based on LIBOR as of December 31, 2017 or the LIBOR floor, as applicable. The Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2017 as weighted by the Outstanding Principal balance of each loan. 3. Certain loans are subject to contractual extension options that vary between one and two 12-month extensions and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications. 4. I/O = interest only, P/I = principal and interest. 5. The senior mortgage loan is collateralized by a portfolio of self-storage properties and one retail property. The total principal balance of the senior mortgage loan is $134.1 million as of December 31, 2017, of which $119.0 million is allocable to the self-storage properties and $15.1 million is allocable to the retail property. In December 2017, the Company and the borrower entered into a loan modification, which, among other things, extended the repayment obligation with respect to the retail property to January 2018, which is prior to the initial maturity date of the loan in October 2018. 6. The senior mortgage loan is collateralized by a portfolio of self-storage properties and one retail property. The total principal balance of the senior mortgage loan is $82.3 million as of December 31, 2017, of which $70.2 million is allocable to the self-storage properties and $12.1 million is allocable to the retail property. In December 2017, the Company and the borrower entered into a loan modification, which, among other things, extended the repayment obligation with respect to the retail property to the maturity date of the loan in October 2018. 7. In April 2017, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the senior Michigan loan to July 2018. 8. In May 2017, amortization began on the senior Ohio loan, which had an outstanding principal balance of $32.2 million as of December 31, 2017. In October 2017, amortization began on the senior New York loan, which had an outstanding principal balance of $29.6 million as of December 31, 2017. In February 2021, amortization will begin on the subordinated New Jersey loan, which had an outstanding principal balance of $17.0 million as of December 31, 2017. The remainder of the loans in the Company’s portfolio are non-amortizing through their primary terms. 9. In August 2017, the borrower exercised a one-year extension option in accordance with the loan agreement, which extended the maturity date on the senior New York loan to October 2018.

Confidential – Not for Publication or Distribution 25 II. Select Financial Statements and Information

Confidential – Not for Publication or Distribution Confidential – Not for Publication or Distribution 27 Confidential – Not for Publication or Distribution 28 III. Performance Notes

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

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

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

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

Confidential – Not for Publication or Distribution 31

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

Real Estate • Performance returns presented herein are as of December 31, 2017 unless otherwise more specifically noted. The U.S. Equity aggregate and Europe Equity aggregate performance returns reflect real estate investment strategies that are focused on income and appreciation (for value-add) and primarily appreciation (for opportunistic). Performance returns are based on actual cash activities through December 31, 2017, with all remaining assets and liabilities of each respective fund or investment existing as of December 31, 2017 assumed to be liquidated at the estimated values indicated in the respective financial statements with proceeds therefrom assumed to be distributed accordingly. Performance returns presented do not include funds where the initial investment was made less than two years prior to December 31, 2017. • Performance for Debt is represented by Ares Commercial Real Estate Corporation (“ACRE”) performance statistics. Performance for U.S. Equity is represented by an aggregate of our U.S. real estate equity strategies, comprised of VEF I, VEF II, VEF III, VEF IV, VEF V, VEF VI, US Fund VII, US Fund VIII, AREIF I, AREIF II, AREIF III, AREIF IV, AREIF V, AREOF and AREDR II. Performance for Europe Equity is represented by an aggregate of our European real estate equity strategies, comprised of IF, EF II, EF III, EF IV, EPEP I and co-investments by third party investors alongside investments made by these funds. • Gross IRR is an internal rate of return generally based on aggregate periodic cash flow activities between a specific fund and its respective investments (or portfolio of investments, as applicable), including cash flows attributable to any sales, dispositions, reinvestment of proceeds, financing and/or refinancing and operating activities. Gross IRRs do not reflect or include the impact of applicable management fees, performance fees or carried interest, fund level expenses, working capital, use of subscription financing and other expenses. Net IRR is an internal rate of return generally based on aggregate periodic cash flow activities and generally reflects and includes the impact of applicable management fees, performance fees or carried interest as if the funds or investments in existence as of December 31, 2017 were liquidated at estimated fair values and proceeds distributed accordingly, fund level expenses, working capital, use of subscription financing and other expenses. The General Partner and any of its affiliates that do not bear management fee or carried interest are excluded for purposes of calculating the net IRR. Certain funds utilize a credit facility during the capital raising and investment period and for general cash management purposes during the investment period. Net IRRs would be lower had the funds called capital from limited partners instead of utilizing the credit facility. • As of the period indicated, the U.S. Equity aggregate gross IRR is 15% and the net IRR is 10%. The U.S. Equity aggregate reflects the U.S. real estate equity strategies and includes investments in and the results of the following funds: (a) U.S. Equity Value-Add Funds: Value Enhancement Fund I, L.P. (“VEF I,” vintage 1993), Value Enhancement Fund II, L.L.C. (“VEF II,” vintage 1995), Value Enhancement Fund III, L.L.C. (“VEF III,” vintage 1997), Value Enhancement Fund IV, L.P. (“VEF IV,” vintage 1999), Value Enhancement Fund V, L.P. (“VEF V,” vintage 2001), Value Enhancement Fund VI, L.P. (“VEF VI,” vintage 2005), Ares US Real Estate Fund VII, L.P. and Ares US Real Estate Fund VII 892, L.P. (collectively, "US Fund VII," vintage 2007), and Ares US Real Estate Fund VIII, L.P. ("US Fund VIII," vintage 2013); and (b) U.S. Equity Opportunistic Funds: Apollo Real Estate Investment Fund I, L.P. (“AREIF I,” vintage 1993), Apollo Real Estate Investment Fund II, L.P. (“AREIF II,” vintage 1995), Apollo Real Estate Investment Fund III, L.P. (“AREIF III,” vintage 1997), Apollo Real Estate Investment Fund IV, L.P. (“AREIF IV,” vintage 1999), Apollo Real Estate Investment Fund V, L.P. (“AREIF V,” vintage 2004) and Ares US Real Estate Opportunity Fund, L.P. (“AREOF,” vintage 2008), and Ares US Real Estate Development and Redevelopment Fund II, L.P. (“AREDR II,” vintage 2015). Please note that AREIF I-IV were global funds, with the ability to invest both within and outside of the U.S. AREIF I and II had no geographic investment limitations; AREIF III and IV were permitted to invest up to 30% of their aggregate commitments to deals outside of the U.S. The cash flow activities of AREIF I-IV (including investments made outside of the U.S.) are included in the gross and net IRRs of the U.S. real estate equity strategies. The gross and net IRRs of the U.S. real estate equity strategies presented herein do not include the investments in or the performance results of (a) funds with strategies other than value add and opportunistic, (b) single-investor investment accounts, and (c) co-investments made by third party investors alongside the U.S. Equity Value-Add and U.S. Opportunistic funds. • As of the period indicated, the Europe Equity aggregate gross IRR is 15% and the net IRR is 8%. The Europe Equity aggregate reflects the European real estate equity strategies and includes investments in and the results of the following funds and co-investments: (a) European Equity Opportunistic Funds: Ares European Real Estate Fund I (EU), L.P. and Ares European Real Estate Fund I (IF), L.P. (collectively, “IF,” vintage 2001), Ares European Real Estate Fund II, L.P. and Ares European Real Estate Fund II (Euro), L.P. (collectively, “EF II,” vintage 2004), Ares European Real Estate Fund III, L.P. and Ares European Real Estate Fund III (Euro), L.P. (collectively, “EF III,” vintage 2007) and Ares European Real Estate Fund IV, L.P. and Ares European Real Estate IV (Euro), L.P. (collectively, “EF IV,” vintage 2013); (b) European Equity Value-Add Funds: AREA European Property Enhancement Program, L.P. (“EPEP I,” vintage 2012); and (c) co-investments made by third party investors alongside investments made by IF, EF II, EF III, EF IV and EPEP I. For purposes of calculating aggregate gross IRRs and net IRRs for the European real estate equity strategies, the periodic cash flows for funds and co-investments that were denominated in currencies other than United States Dollars (USD) were converted to USD using a constant exchange rate based on the respective average spot rate over the life-to-date of such funds and co-investments. • The performance data for Ares Commercial Real Estate Corporation (“ACRE”) shown herein does not include all debt-related assets and strategies managed by the Ares Real Estate Group. The return shown for ACRE is the average annualized return on equity for the period since IPO of the company through December 31, 2017 and is calculated as the average of net income divided by common equity (excluding minority interests) at the end of each fiscal quarter for the applicable period on an annualized basis. The return on equity reflects the implicit costs of un- invested capital, as well as the leverage utilized by ACRE, management fees, administrative fees reimbursed to manager as well as other expenses and costs incurred by ACRE or shareholders of the company.

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Performance Notes to Ares Real Estate Group Slide

Ranking The performance and awards/ratings noted herein relate only to selected funds/strategies, are provided solely for informational purposes and may not be representative of any given client’s or investor’s experience and should not be viewed as indicative of Ares’ past performance or its funds’ future performance. PERE 50: Ranking applies to the Ares Real Estate Group related to selected funds managed therein, some of which were previously managed by AREA Property Partners (“AREA”) prior to Ares Management LLC’s acquisition of AREA in July 2013. The PERE 50 measures equity raised between January 1, 2012 and the end of March 2017 for direct real estate investment through closed- ended, commingled real estate funds and co-investment vehicles that invest alongside those funds. The vehicles must give the general partner discretion over capital and investment decisions and excludes club funds, separate accounts and joint ventures where the general partner does not have discretion over capital and investments. Also excluded are funds with strategies other than real estate value-added and opportunistic (such as core and core-plus), funds not directly investing in real estate (such as fund of funds and debt funds) and funds where the primary strategy is not real estate focused (such as general private equity funds). Ares did not pay a participation or licensing fee in order to be considered for the PERE 50 ranking.

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