The first foreign trip Joel Holsinger took in 2019 after joining the board of directors at the global health non-profit PATH convinced him that he needed to do more to raise money for charities.

The investment manager, who is now also a partner and co-head of alternative credit at Ares Management Corp., saw firsthand how a tuberculosis prevention program was helping residents of Dharavi, India’s largest slum. He also saw that the main hurdle to expanding the program’s success was simply a lack of funding.

“I wanted to do something that has purpose,” Holsinger told The Associated Press. “I wanted a charitable tie-in to whatever I do.”

Shortly after returning from India, Holsinger created a new line of investment funds to which Ares Management would donate at least 5 percent of its performance fee, also known as the “promote,” to charities.

The first two funds of the resulting Pathfinder family of funds alone have raised more than $10 billion in investments and, as of June, pledged more than $40 million to charity.

Holsinger wanted to expand the model further. Earlier this week, he announced the creation of Promote Giving, a new initiative to encourage other investment managers to use the model, which launches with funds from nine firms, including Ares Management, Pantheon and Pretium.

The funds that are now part of Promote Giving represent about $35 billion in assets and could result in charitable donations of up to $250 million over the next 10 years.

Unlike broader models such as ESG investing, where environmental, social and governance factors are taken into account when making business decisions, or impact investing, where investors seek a social return along with a financial one, Promote Giving seeks to maximize the return on investment, Holsinger said.

The donation only comes after investors receive their promised return and only from the manager’s fees.

“We’re not doing anything that looks at lower returns,” Holsinger said. “It’s basically just a dual mandate: If we do good on returns for our institutional investors, we will also drive returns that go directly to charity.”

Sal Khan, founder and CEO of Khan Academy, which offers free learning resources for teachers and students, says the structure of Promote Giving could provide nonprofits stable income over several years that would allow them to spend less time fundraising and more time on their charitable work.

“It’s actually been hard for us to raise the philanthropy needed for us to have the maximum impact globally,” said Khan.