Global alternative investment manager Ares Management Corporation (Ares) has launched the Ares Charitable Foundation, which will will seek to accelerate equality of economic opportunity through grants to nonprofit organisations whose programming provides Career Preparation & Reskilling, encourages Entrepreneurship and deepens individuals’ understanding of Personal Finance.
The Ares Foundation’s work is made possible through Ares, which expects to donate an amount of up to five per cent of its annual realised net performance income from certain Ares funds to the Ares Foundation, further aligning the Firm’s investment activities with its societal impact. In addition, the Ares Foundation will rely on the generosity of Ares employees who may donate cash, equity and a portion of their realised proceeds from carried interest in certain funds. Initial employee commitments total nearly USD30 million.
“Our belief is that delivering value to stakeholders goes beyond financial returns – it’s about ensuring that all members of society have equitable access to knowledge, resources and opportunities so that they can achieve their full potential,” says Michael Arougheti, Chief Executive Officer and President of Ares. “With the launch of the Ares Foundation, we further demonstrate our commitment to supporting high-quality nonprofit organisations and initiatives that align with our core values, and we hope to inspire others to do the same.”
“We believe the Ares Foundation can make a measurable, sustained difference in the lives of people who desire a brighter future and offer a way for both Ares and our employees to help make that happen,” says Michelle Armstrong, Head of Philanthropy and Executive Director of the Ares Foundation. “Our grants will seek to address some of society’s most pressing challenges through transformative giving and will generate critical data that we can use to thoughtfully assess the efficacy of our work.”
The Ares Foundation will strategically collaborate with nonprofits globally that meet its programming, organisational capacity, and organisational culture and commitment criteria. Much of the grant-making will be employee-directed and provide skills-based volunteer opportunities through Ares in Motion (AIM), the Firm’s philanthropic employee engagement program. Connecting Ares’ professionals to the Ares Foundation’s initiatives will build their knowledge of philanthropy and nonprofit operations so that they extend their civic involvement to the communities where they live and work. In addition, the Ares Foundation expects to partner with Ares’ portfolio companies and industry colleagues on initiatives to inspire their giving activity and involvement.
One of the Ares Foundation’s investments is “AltFinance: Investing in Black Futures”, a recently announced, industry-first initiative in collaboration with Apollo Global Management and Oaktree Capital Management designed to help diversify the alternative investment industry. In alignment with the Ares Foundation’s grants for Career Preparation & Reskilling, AltFinance is intended to provide students at Historically Black Colleges and Universities with clear pathways to careers in the alternative investment industry. The initiative has three primary components: a mentored fellowship program, a tailored virtual institute and a scholarship program.
In addition to its environmental, social and governance and diversity, equity and inclusion efforts, philanthropy is one of Ares’ three pillars that reflect the Firm’s commitment to catalyse shared prosperity. Collectively, the three pillars exemplify Ares’ core values and help guide its business operations and investment activities through what is known as Impact at Ares.
