Ares CEO Explains Why It Hasn’t Teamed Up With Traditional Firms

Ares Management Corp. has resisted partnering with other money managers to reach everyday investors, including through the 401(k) market, even as others team up with more traditional firms to invest for the masses.

Firms “going heavy into partnerships” believe that retail clients want to buy a traditional product merged with an alternative one, Ares Chief Executive Officer Michael Arougheti said Wednesday at the Goldman Sachs Financial Services Conference.

But he said he hasn’t convinced himself “that you’re delivering a better investment outcome to the client” through such partnerships. Ares has had multiple discussions about partnerships, though.

“If the world goes ...