Ares Management, L.P. is a publicly traded, global alternative asset manager with approximately $94 billion of assets under management and approximately 865 employees. Ares expanded its Private Equity Group in January 2015 through a subsidiary’s acquisition of Energy Investors Funds (“EIF”), an asset manager in the U.S. power and energy industry. Prior to 2015 EIF added Pilgrim Pipeline Holdings, LLC to its portfolio of energy industry investments.
On May 13, 2016, CAPP sent this letter to Ares asking it to defund efforts to construct the pipelines. On May 26, Ares sent this response to CAPP.
Private Equity Closer Look has released a report examining Ares’ commitment to Pilgrim : Is Ares Management Building a Pipeline to Nowhere? Read the summary or the full report.
New York Pension Fund Activity
The New York State and Local Retirement System (NYSLRS) has nearly $800 million invested in various Ares Management portfolios. The village of of New Paltz and the town of Rosendale have passed resolutions asking the New York State Comptroller to
- Take a broader look reviewing Ares Management portfolio companies – including those not directly held in the NYSLRS – through the lens of Governor Cuomo’s Reforming the Energy Vision (REV) plan; and
- Exercise its fiduciary responsibility when reviewing third-party investment managers’ portfolio holdings and the nature of underlying businesses.
These resolutions are generally regarded as requests to the NY State Comptroller to divest its Ares investments. See a press report here.
CAPP plans to work with other municipalities, as well as with public employee unions such as fire, police, first responders and teachers, to gain additional support for this request.
Municipal resolutions on Ares: