Ares Management CEO Michael Arougheti says the firm has deliberately avoided the wave of partnerships between alt asset managers and traditional investment houses aimed at accelerating access to retail investors — particularly in the fast-evolving 401(k) channel, according to a report by Bloomberg.
Speaking at the Goldman Sachs Financial Services Conference, Arougheti said many firms “going heavy into partnerships” are betting that mass-market clients want hybrid products that blend traditional and alternative exposures. But he remains unconvinced that such tie-ups improve outcomes for end-investors. While Ares has held multiple discussions about potential partnerships, he said the firm is not yet persuaded that co-manufactured products deliver genuine value.
“If the world goes that way, I think we’ll be able to participate,” he noted, but stressed that Ares will be selective.
The comments come as rival managers ramp up efforts to tap the retail market. Apollo and State Street launched a private-credit ETF earlier this year, while Blackstone, Vanguard and Wellington are preparing a multi-asset fund with private-markets exposure aimed at retail savers.
Arougheti acknowledged that the 401(k) market represents a major growth opportunity, particularly after regulatory changes under the Trump administration paved the way for defined-contribution plans to hold non-traditional assets. He reiterated Ares’ support for allowing private investments into 401(k) structures but warned that fiduciary, suitability and oversight questions still need to be resolved before the channel can scale meaningfully.
