Presentation to Vermont Pension Investment Committee

Pro Forma Performance Notes to Alt Credit Track Record Slides Past performance is not indicative of future results. Please see the below performance disclosures for important information about the results shown herein. The investments reflected herein are intended to be illustrative, and are not intended to be used as an indication of current or future performance of any Ares strategy or investment. Further, reference to these particular investments is not necessarily indicative that any Ares fund or strategy will offer or hold any or all of the investments. The opportunity to invest in future Ares funds, strategies or investments on an ongoing basis is not guaranteed, and will be made by means of definitive offering memoranda, which will be furnished to qualified investors at their request. The Total Alternative Credit track record shown includes the following: Financial: all CLO investments in commingled funds and separately managed accounts executed by investment professionals within Ares Credit Group for the period January 1, 2012 to December 31, 2020; all FINCO debt investments in Ares Capital Corporation executed by investment professionals within Ares Credit Group for the period from January 1, 2012 to December 31, 2020; and all financial asset investments in commingled funds and separately managed accounts executed by investment professionals within Ares Credit Group. Specialty: all private asset-backed investments in commingled funds and separately managed accounts executed by investment professionals within Ares Credit Group. Real: all CMBS investments in commingled funds and separately managed accounts executed by investment professionals within Ares Credit Group for the period January 1, 2018 to December 31, 2020; all real asset investments in commingled funds and separately managed accounts executed by investment professionals within Ares Credit Group; and all K-Series investments in separately managed accounts executed by investment professionals within Ares Real Estate Group. "Pathfinder Core Strategy Subset" consists of investments made in strategies with risk-return objectives aligned with those of Pathfinder Core. The Pathfinder Core Strategy Subset includes certain investments allocated to Ares Pathfinder Fund which have higher underwritten returns than investments contemplated for the Pathfinder Core Fund. The pro forma performance results shown have been compiled by Ares from actual realized and unrealized investments that were not collectively part of an actual portfolio. However, these results are based on a grouping of assets that are representative of the strategy that the Ares Pathfinder Core Fund intends to follow. Pro forma performance results may have inherent limitations, and no representation is being made that any investor will or is likely to achieve profits or losses similar to those shown. Had a fund or strategy focused on the assets represented by this performance actually existed, Ares may not have made the same investment decisions. Given Ares did not offer an investment vehicle that held all of the assets included in the pro forma track record, an investor was not able to invest in these assets as presented. There are factors related to the markets in general, or to the implementation of any specific portfolio strategy, which cannot be fully accounted for in the preparation of pro forma portfolio performance, all of which can adversely affect actual portfolio results. Returns of unrealized investments herein are based in part on unrealized valuations and the actual realized returns of such unrealized investments may differ materially from the returns indicated herein. The performance information summarized herein has not been audited. Past performance is not indicative of future results. No individual investor has received the investment performance indicated by the pro forma returns presented herein. Certain assumptions, not all of which are described herein, have been made to calculate pro forma returns and the use of different assumptions could produce materially different results. Fee and expense assumptions are based on the following: Assumptions are based upon what Ares believes represents a reasonable fee analysis. Fees and expenses for the Core Strategy may be materially different than the fee and expense assumptions provided herein. a. Represents total net losses on all realized investments divided by total invested capital. b. Represents the asset-level Internal Rate of Return (IRR) of selected investments. IRR is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRRS are de-annualized for investments with a holding period of less than one year. Gross asset-level IRR is gross of management and other expenses related to investments as these expenses are not allocable to specific investments and differ among funds. Gross asset-level performance does not reflect the effect of management fees, carried interest or other expenses, which in the aggregate may be substantial. The net IRR reflects the deduction of hypothetical management fees, incentive fees, and operating and administrative expenses from the gross IRR. For Illiquid Alternative Credit, we assumed management fees of 1.25% per annum, operating expenses of 0.12% per annum, and one time organizational expense of 0.175%. For the incentive fee estimate, we assumed a straight-line 20% deduction against the net return before incentive fees once a 6% hurdle was cleared. For the Pathfinder Core Strategy Subset, we assumed management fees of 1.125% per annum, operating expenses of 0.165% per annum, and one time organizational expense of 0.20%. For the incentive fee estimate, we assumed a straight-line 15% deduction against the net return before incentive fees once a 6% hurdle was cleared. For Liquid Alternative Credit, we assumed a management fee of 0.50% per annum, administrative expenses of 0.02% per annum, and one time organizational expense of 0.03%. The effects of actual management fees, performance fees, and other expenses may differ, maybe materially, from the effects of expenses estimated herein. Investments are considered to be realized when the original investment objective has been achieved through the receipt of cash upon the sale of an investment. Past performance is not indicative of future results, the achievement of which cannot be assured. C. MOIC represents Multiple on Invested Capital. Asset-level MOIC is gross of management and other expenses related to investments as these expenses are not allocable to specific investments and differ among funds. The effect of such management and other expenses may reduce, maybe materially, the multiples show herein. Investments are considered to be realized when the original investment objective has been achieved through the receipt of cash upon the sale of an investment. The net MOIC reflects the deduction of hypothetical management fees, incentive fees, and operating and administrative expenses from the gross MOIC. See (b) above for further details on the assumptions. Note the net MOIC does not factor in the impact of the hurdle rate or reinvested capital. Note pro forma net IRR and MOIC exclude the benefit of any recycling, reinvestment and liquidity management. Confidential - Not for Publication or Distribution 33 ARES