Ares Management Corp. Expands Strategic Horizons and Champions Philanthropic Innovation

Ares Management Corp. (NYSE: ARES) has announced two significant developments that underscore its dual focus on growth and social responsibility. First, the firm has entered into a strategic relationship with Bridgeway Lending Partners LLC, doing business as LenderMAC. Second, Ares has taken a leading role in the launch of Promote Giving, a collaborative philanthropy initiative that pledges a portion of performance fees to charitable causes.

1. Strategic Partnership with LenderMAC

On October 17 2025, LenderMAC disclosed that it had entered into a structured debt investment and buying arrangement with Ares Alternative Credit funds. Under the terms of the agreement, Ares will acquire a substantial portion of LenderMAC’s non‑qualified mortgage (non‑QM) production. In addition, Ares will provide strategic capital to support LenderMAC’s origination and growth efforts.

This transaction represents a clear signal of confidence in the non‑QM market, which has attracted scrutiny in the wake of recent credit market volatility. By providing liquidity and capital to LenderMAC, Ares is positioning itself to capture opportunities in a niche segment that offers higher yields than traditional mortgages while maintaining a diversified risk profile. The partnership also aligns with Ares’s broader strategy of investing across the entire capital structure— from senior debt to common equity— in both tradable credit and private markets.

2. Launch of Promote Giving

In a separate announcement, Ares announced its participation in Promote Giving, a new philanthropic model that encourages investment managers to donate a portion of their performance fees to charities. Joel Holsinger, a partner at Ares, revealed that the initiative will channel at least 5 % of selected funds’ performance fees to organizations focused on healthcare, education, and other drivers of human well‑being.

Promote Giving is a collaborative effort that brings together nine founding signatories, including prominent asset managers, to institutionalize philanthropy within the investment industry. By aligning financial incentives with social impact, the initiative seeks to create a scalable framework for charitable giving that can evolve alongside market dynamics. Ares’s involvement demonstrates its commitment to responsible investment practices and its willingness to pioneer new models that benefit both investors and society.

3. Market Context

Ares’s recent actions come amid a broader climate of debate between banks and private credit firms regarding resilience in a potential downturn. While the firm’s market price hovered around USD 141.87 on October 16, 2025, it remains a prominent player in capital markets, with a market capitalization of approximately USD 49.2 billion. The company’s high price‑to‑earnings ratio—over 78—reflects the premium investors place on its diversified strategy and its track record in alternative credit and private equity.

The strategic partnership with LenderMAC and the philanthropic launch of Promote Giving are consistent with Ares’s long‑standing mission: to serve a diverse client base—including university endowments, pension and sovereign wealth funds, banks, and insurance companies—while generating superior risk‑adjusted returns. By expanding its origination capabilities and embedding social impact into its operating model, Ares continues to reinforce its position as a leading asset manager in the capital markets sector.

4. Forward‑Looking Statements

Both the LenderMAC agreement and Promote Giving are forward‑looking initiatives that involve risk and uncertainty. Future performance will depend on macroeconomic conditions, regulatory developments, and market dynamics. Ares Management Corp. remains committed to transparent communication with stakeholders and to maintaining rigorous risk management practices as it executes these new ventures.