In brief: Ares continues carry donation component of Pathfinder funds

Ares' Pathfinder strategy has raised $10m so far in ‘potential charitable donations’.

Ares Management has pledged to donate part of the performance fees for its alternative credit strategy to philanthropic initiatives, chief executive Michael Arougheti said in the firm’s first quarter results call last week.

Of the carried interest from Ares’ second Pathfinder fund, which launched in March with a $5 billion target, 10 percent will be donated to “global health and education initiatives”. Its predecessor, Pathfinder I – which closed on $3.7 billion in 2021 – also had this commitment. The strategy includes the open-ended Pathfinder Core fund, which launched in 2021 and is now $2.7 billion. Of the incentive fee for this fund, 5 percent will also be donated.

So far, the Pathfinder strategy has raised “approximately $10 million for potential charitable donations… based on performance to date”, said Arougheti. Across the three funds, the philanthropic commitment applies to $10.5 billion of investment capital. “These contributions will be split equally between our investment team and Ares.”