Ares execs open up about their summer internship program from what it's like to characteristics

Publish date: 2024-07-19
2022-01-14T13:53:44Z

Ares is joining the growing list of alternative asset management firms expanding their internship programs for undergraduates in the hopes that sourcing its own talent will lead to a more diverse set of candidates and more young professionals entering the alts space. 

The Los Angeles-based investment firm has recruited interns for its private-equity business since 2012. But, since 2020, the firm has expanded the recruitment of interns to real estate, private credit, and secondaries, as well as its business operations teams, which include information technology (IT), finance, and accounting.

The expansion of undergraduate recruitment comes as Ares has drastically grown over the past few years. Its assets under management, which are at $282 billion, have more than tripled since 2015 when it sat at $93.6 billion. And the firm announced at its 2021 investor day that it aims to reach $500 billion by 2025.

Execs at the firm told Insider this growth has caused Ares to need more hands on deck. The firm declined to disclose the exact size of its internship classes, but execs say it plans to double the size of the class of 2021.

A person familiar with the situation said Ares recruited about 40 interns in 2020, suggesting potentially dozens more openings this year.

Ares executives also walked Insider through its internship recruiting process, outlining the qualities it looks for in its candidates as well as important application deadlines. They also explain what it's like to intern at the fast-growing firm, which opened its first dedicated private equity fund in 2003. 

About the internship

Ares, like many private-equity firms, used to rely on investment banks for its young talent, recruiting junior bankers following the completion of their analyst program. And while the firm will continue to tap banks for young dealmakers, it won't solely rely on them. 

Three years ago, Ares developed its own recruiting and training programs for rising seniors that would eventually deliver it full-time investment analysts.

So far, the number of former interns that have accepted full-time jobs with Ares is around 90%, Gina Velliquette, managing director and co-head of talent, told Insider. It's been such a success the firm would like to launch a sister program in Europe.

Internships take place from June to August in the summer before a student's senior year. Successful interns can receive a full-time analyst job offer that would begin after they graduate.

Applications for front-office summer internships open more than one year before the program starts, meaning students are typically in their sophomore year when they apply. Any student from a college or university can apply and applications can be found on jop-posting platforms like LinkedIn and Handshake.   

Ares starts accepting applications in early to mid-March, annually, and then interviews are conducted between April and May for internships the following summer. 

For business operations interns, it's the same method except applications open in the fall and close by the end of the year. 

For the summer 2022 internship class, the investment internship positions were filled last year. Ares is now focused on filling roles for its business operations.

From left to right: Gina Velliquette, principal and senior HR business partner at Ares, and Indhira Arrington, chief DEI officer. Ares Management

The types of candidates Ares is looking for

During the summer internship, investment interns will be treated as regular staff members, which means they'll get a taste of what a full-time analyst or business operation position with Ares will be like. 

For investment interns, they'll work on live deals, evaluate potential portfolio companies, attend investment committee meetings, and speak with prospective investors. And business operations interns will be involved in providing the needed support around Ares' core operations.

To be considered for the summer internship, Ares is looking for a set of traits. The ability for students to collaborate, take responsibility, be self-aware and proactive ranks high on its list of desirable traits. 

Indhira Arrington, chief diversity, equity and inclusion officer at Ares, explained that students who are vocal and opinionated stick out more.

"We want to hear their voices," she said. 

Velliquette added leadership as another character trait. Though having prior financial services experience is great, she said, the firm is really looking for people who can represent Ares well and who are hungry, excited to learn, and passionate about finance.

Other alternative firms have taken to building out their own recruitment pipelines from undergraduate institutions.

General Atlantic started its first ever internship in 2016 and told Insider in September that it wanted youthful minds to help the $86 billion firm source deals. The internship also helps the investment firm create a different option to the two-year track at investment banks.

Sixth Street, a $60 billion investment firm, does outreach to its employees' alma maters to host information sessions with students. It also partners with a handful of nonprofit organizations that aim to increase diversity in financial services like Jopwell, BLK Capital and Girls Who Invest.

The demand for young talent is matched by undergraduates' growing interest in private equity. The University of Michigan's Ross School of Business responded to its students' appetite by launching a program called Private Equity Internship+ to connect eager students to internships at alternative investment firms. 

Ares' diversity push

Part of Ares' push to recruit directly from colleges includes pulling from a wider, more diverse pool of talent. 

Ares has three approaches to the process.

The firm began its on-campus recruiting in 2019 to build relationships with administrators and student organizations. 

It then branched out to nonprofit organizations intent on increasing diversity in the finance sector such as Sponsors for Educational Opportunity (SEO) and Management Leadership for Tomorrow. 

The third effort was the creation of Alt Finance: Investing in Black Futures, a program it created with Apollo Global Management and Oaktree Capital Management in 2021 to usher more Black professionals into the alternative investment industry. The three alternative asset management firms pledged $30 million each, a total of $90 million, over the course of 10 years to fully fund the not-for-profit organization and provide a stipend for participants.

Ares got the Wharton School of the University of Pennsylvania, a top-choice business school for those entering the finance sector, to put together a curriculum for the program, which is hosted at four historically Black colleges and universities, including Clark Atlanta University, Howard University, Morehouse College, and Spelman College. 

To help with its branding among college students, Ares also created Explore Ares in late 2020. The program is a series of information sessions and educational workshops over the course of six weeks for college freshmen and sophomores who are women or students of color in a bid for them to be aware of the various roles and positions at Ares, specifically.

With these efforts, Ares hopes to see greater diversity across its internship class and overall business. In 2021, its internship class was 41% women and 59% ethnically diverse, said Velliquette. Twenty-eight percent were from underrepresented groups, which include African Americans, Latinx, American Indian, Alaska Natives, Pacific Islanders and multi-racial individuals.

Ares' overall diversity in 2020 was 34% women, 23% Asian, and 15% individuals from underrepresented ethnic backgrounds.

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