Arougheti Connects Private Credit To Baseball Leadership

In Brief:

Michael Arougheti, co-founder of Ares Management and Baltimore Orioles co-owner, shared insights on leadership and market evolution in an interview with Lawrence Calcano on "The 19th Hole." Speaking from Camden Yards, Arougheti explained how private credit has transformed financial markets by directly connecting asset owners with capital sources, bypassing traditional intermediaries. He emphasized that private credit isn't displacing banks but rather complementing an ecosystem where each institution offers distinct products, allowing all participants to grow simultaneously.

Big Picture Drivers:

• Market Evolution: Private credit emerged as banks couldn't meet growing demand for certain types of financing

• Leadership Values: Authenticity and vulnerability create stronger organizational cultures

• Sports Connection: Baseball ownership provides lessons in community engagement and brand loyalty

• Cultural Foundation: Purposeful mission beyond profits motivates high performance

Key Topics Covered:

• Private Credit Growth: How direct lending fills gaps traditional banks can't service

• Entrepreneurial Journey: From trading baseball cards to co-founding a major financial firm

• Team Ownership: Making authentic connections with Baltimore fans and community

• Corporate Culture: Building successful organizations through clear values and mission

Key Insights:

• Vulnerability Strength: Arougheti's biggest leadership breakthroughs came from showing vulnerability

• Market Complementarity: Private credit, banks, insurance companies and liquid markets form a symbiotic ecosystem

• Client-First Thinking: Shifting focus from returns to who the company serves created a powerful cultural transformation

• Community Investment: Sports ownership requires deep civic responsibility and community engagement

By The Numbers:

• 12 People: Initial team size when Arougheti started his firm before joining Ares

• 30-40 Games: How many games co-owner David Rubenstein attends in the stands with fans annually

• 3 Years: How quickly Arougheti graduated from Yale with a degree in politics, economics, and ethics

Memorable Quotes:

• "Private credit is the same as public credit, it's just we are originating the asset directly to the asset owner or the company versus going through an intermediary." - Michael Arougheti

• "The people side of any business is 80% of the success. The technical stuff kind of takes care of itself." - Michael Arougheti

The Wrap: Arougheti's conversation reveals how similar principles drive success in both finance and sports: authentic leadership, community engagement, and a mission beyond profits. His journey from trading baseball cards to running a financial powerhouse and co-owning the Orioles demonstrates how entrepreneurial instinct combined with clear values creates sustainable success across different fields. The interview showcases how vulnerability and accessibility can become competitive advantages in both financial markets and sports ownership.