Ares Charitable Foundation
The Ares Foundation has committed nearly $58 million in multiyear grants since its launch in 2021 to organizations committed to help reduce economic disparities.1 The innovative initiatives that the Ares Foundation funds support populations in need and concurrently seek to help drive systemic change.
The World Bank raises concerns as the first half of the 2020s nears its midpoint. According to the think tank’s recent Global Economic Prospects report, the end of 2024 will mark the slowest five years of global GDP growth in 30 years. While worries about a global recession have abated, global growth is nonetheless expected to slow for the third consecutive year, dropping from 2.6% in 2023 to 2.4% in 2024. Moreover, developing economies are forecast to grow just 3.9%, significantly less than the 5.5% by which they would need to grow for improved economic stability following disappointing growth last year.
According to the World Bank, the poorest countries will more than likely become paralyzed by debt due to factors such as mounting geopolitical tensions, sluggish global trade, climate disasters and steep interest rates for those that rely on borrowed funds. Moreover, one in every three persons in these countries may be vulnerable to food insecurity.
The Ares Foundation strives to help accelerate economic equity and equality by supporting nonprofits to architect, implement and scale solutions to some of the world’s most pressing problems.
To do so, the Ares Foundation seeks to provide equitable access to the knowledge, resources and opportunities that people need to achieve their full potential by supporting nonprofits that provide career preparation and reskilling, encourage entrepreneurship and deepen individuals’ understanding of personal finance.
Ares’ success helps power this societal impact through select funds at the Firm that have committed up to 5% of their annualized, realized net performance income to enable the Ares Foundation’s work, a funding approach that the Firm’s Alternative Credit team inspired through that group’s commitment to designate a portion of earned carried interest profits to global health and education charities.2
This approach is designed to inspire confidence in team members and investors alike that investment performance provides funding for charitable initiatives.
An Inequitable Economy3
1. Grant money referenced may include values made over a period of time in different installments. 2. Projections and forward-looking statements are not reliable indicators of future events and there is no guarantee that such activities will occur as expected or at all. 3. Data as of 2022.
