Key takeaways

• Integrating philanthropy into business operations can significantly enhance both impact and legacy.
• A growing number of funds are incorporating charitable contributions into their business models.
• The ‘promote giving’ initiative encourages fund managers to allocate at least 5% of their profits to philanthropy.
• Targeted funding can have a significant impact on healthcare in underserved regions, as seen in Zimbabwe.
• Small grants can lead to substantial educational impacts, exemplified by projects in India.
• There is a remarkable interest from global hedge funds in philanthropic initiatives.
• Creating a community that fosters trust and collaboration is crucial in the investment industry.
• Aligning organizational values with philanthropic efforts can enhance partnerships and drive higher returns.
• The promote giving model has the potential to create permanent funding sources for philanthropy.
• Philanthropic commitments are becoming a trend in the finance industry.
• Leveraging matched funding can enhance healthcare infrastructure in developing countries.
• The strategic alignment of values can lead to stronger partnerships and better outcomes.
• Community and trust are essential for successful partnerships in the investment sector.

Guest intro

Joel Holsinger is Partner, Portfolio Manager, and Co-Head of Ares’ $50 billion Alternative Credit strategy in the Ares Credit Group. He spearheaded the launch of Promote Giving in October, a philanthropic initiative where GPs commit up to 5% of their promote on at least one fund to charity, securing ten signatories with more than $35 billion in AUM pledged. Previously, he was a partner at Fortress Investment Group, where he co-headed illiquid credit.

Integrating philanthropy into business

• Integrating philanthropy into business can significantly enhance impact and legacy.

  — Joel Holsinger

• The seamless integration of philanthropy into business operations can change organizational culture.

• It changed the way I think philanthropic gaming… what he saw was the ability to have that much more impact when you tie it into your business and you make it seamless.

  — Joel Holsinger

• A strategic approach to philanthropy can enhance a company’s legacy.
• Combining business and philanthropy can lead to greater impact.
• The integration of philanthropy reflects a shift in mindset within organizations.
• Philanthropy tied to business operations can influence organizational culture positively.
• The relationship between business and philanthropy is evolving to enhance impact.

Charitable contributions in finance

• A significant portion of funds now contribute to charitable foundations as part of their business model.

• Now there’s a whole bunch of funds that give one to 5% of their promote to help fund the ares charitable foundation.

  — Joel Holsinger

• Charitable contributions are becoming a trend in the finance and investment sectors.
• The integration of charitable contributions into financial practices is notable.
• Funds are increasingly incorporating philanthropy into their models.
• The trend towards charitable contributions reflects a shift in financial practices.
• Philanthropy is being integrated into business models within the finance industry.
• The commitment to philanthropy is growing among funds in the finance sector.

Promote giving initiative

• The ‘promote giving’ initiative encourages fund managers to commit at least 5% of their profits to philanthropy.

• What we came up with is what we call promote giving the idea is that simple your degree and to give at least 5% of your promote of a fund or fund series to philanthropy…

  — Joel Holsinger

• The initiative aims to increase philanthropic contributions from fund managers.
• Promote giving is designed to enhance philanthropic commitments in the finance industry.
• The initiative represents a strategic approach to increasing philanthropy.
• Fund managers are encouraged to integrate philanthropy into their financial strategies.
• Promote giving is a model for integrating philanthropy into financial practices.
• The initiative has the potential to transform philanthropic funding models.

Impact of targeted funding

• The surgical center project in Zimbabwe exemplifies how targeted funding can impact healthcare.

• We’re helping co develop a surgical center with mount sinai in zimbabwe where we agreed to pay for half if they agreed to get matched funding for the other half…

  — Joel Holsinger

• Targeted funding can significantly impact healthcare in underserved regions.
• The project in Zimbabwe demonstrates the power of matched funding.
• Leveraging matched funding can enhance healthcare infrastructure.
• Targeted funding is crucial for addressing healthcare challenges in developing countries.
• The impact of targeted funding is evident in healthcare projects like the one in Zimbabwe.
• Matched funding is a powerful tool for enhancing healthcare infrastructure.

Educational impacts of small grants

• A small grant can lead to significant educational impacts, as seen with Educate Girls in India.

• Our small grant will end up in impacting probably about 150,000 on the expansion that they can do on the villages that they’re going into…

  — Joel Holsinger

• Small grants can create large-scale social change in education.
• The project in India highlights the effectiveness of small grants in education.
• Small grants can have a substantial impact on educational initiatives.
• The reach of educational initiatives can be expanded through small grants.
• Small grants are effective in creating educational change in rural areas.
• The potential reach of educational initiatives is significant with small grants.

Global interest in philanthropic initiatives

• The interest in the initiative has been remarkable, with inquiries from hedge funds globally.

• The interest has been amazing we’ve had inbounds from asia that are reaching out and saying hey i run this hedge fund i love what you guys are doing can you tell me more

  — Joel Holsinger

• Global hedge funds are showing interest in philanthropic initiatives.
• The initiative is gaining validation from international hedge funds.
• The interest from global hedge funds indicates the initiative’s potential impact.
• There is a growing interest in philanthropic initiatives from hedge funds worldwide.
• The initiative is attracting attention from hedge funds across the globe.
• The global interest highlights the initiative’s potential for impact.

Building a community of trust

• Creating a unique community fosters trust and collaboration among investment groups.

• You’ve created this unique community that are all like minded as you know half the getting deals done is who do i wanna trust to who i wanna partner

  — Joel Holsinger

• Trust and collaboration are crucial in the investment landscape.
• A community of trust is essential for successful partnerships in investment.
• The importance of community and trust is emphasized in the investment sector.
• Building a community of trust is key to facilitating successful partnerships.
• Trust plays a critical role in the investment landscape.
• Collaboration is enhanced through a community of trust in investment groups.

Aligning values with philanthropy

• Aligning organizational values with philanthropic efforts can enhance partnerships.

• I’ve even had transactions we did something with mike lowell milken on their family office mike absolutely loved that we had this alignment and we have this transaction on a deal where it’s a tie with three or four people it’s like i think i’d rather partner with this person he’s been an amazing supporter ever since.

  — Joel Holsinger

• The strategic alignment of values can lead to stronger partnerships.
• Aligning values with philanthropy can drive higher returns.
• Partnerships are enhanced when organizational values align with philanthropic efforts.
• The alignment of values is a strategic advantage in business partnerships.
• Stronger partnerships result from aligning values with philanthropic efforts.
• The alignment of values can lead to better outcomes in business.

Permanent funding for philanthropy

• The model of promote giving can create permanent funding sources for philanthropy.

• I do think that this can build permanent funding models for philanthropy if you look at some of our initial grants we’ve done it’s amazing what you can do through this.

  — Joel Holsinger

• Promote giving has the potential to transform philanthropic funding models.
• The model can create sustainable funding sources for philanthropy.
• Permanent funding sources can be established through promote giving.
• The potential for creating permanent funding sources is significant with promote giving.
• The model suggests a shift in how philanthropic funds can be generated.
• Promote giving represents a transformative potential for philanthropic funding.