David Sachs
About David A. Sachs
David A. Sachs (year of birth: 1956) serves as Director and Chair of the Board of Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and is classified as an “interested person” due to his affiliation with the Investment Manager (Ares), not an independent director; he has served on ARDC’s Board since 2011. He is a Partner in Ares Management’s Strategy and Relationship Management Group focused on publicly listed funds and cross-platform credit knowledge, and he holds a B.S. in Industrial Engineering and Management Science from Northwestern University. He is elected solely by holders of ARDC’s Preferred Stock (Class III nominee for a term through the 2028 Annual Meeting). Governance context: the Board is majority independent (60%), but has an interested Chair; a Lead Independent Director is designated and committees are composed solely of independent directors.
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Onyx Partners, Inc. | Principal | Prior to joining Ares in 1997 | Focused on merchant banking and capital raising in private equity and mezzanine debt markets |
| Taylor & Co. (investment manager for Bass family) | Investment professional | Prior role before Onyx (dates not specified) | Provided investment advisory and consulting services to Bass Family (Fort Worth, TX) |
| Columbia Savings and Loan Association | Executive Vice President | Prior role before Taylor & Co. (dates not specified) | Responsible for asset-liability management and running the investment management department |
| ARDC | Director and Chair of the Board | Since 2011 | Board leadership; elected by Preferred Stockholders |
External Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Ares Management Corporation | Partner, Strategy & Relationship Management Group | Since 1997 | Member of Ares Credit Group’s Alternative Credit Investment Committee; Ares Private Equity Group’s Energy Opportunities, Extended Value, and Asia Investment Committees; Ares Real Estate Global and Real Estate Debt Investment Committees; Ares Equity Income Opportunity Strategy Portfolio Review Committee |
| Terex Corporation | Non-Executive Chairman | Not disclosed | Public company leadership; governance oversight |
| Konecranes | Director | Not disclosed | Public company board service |
| CION Ares Diversified Credit Fund (CADC) | Interested Trustee | Not disclosed | Governance for Ares-managed public fund |
| Ares Private Markets Fund (APMF) | Interested Trustee | Not disclosed | Governance for Ares-managed fund |
| Northwestern University | Board of Trustees; McCormick Advisory Council | Not disclosed | Academic governance and advisory roles |
Board Governance
- Independence and structure: 3 of 5 directors are independent (60%); Independent Directors select a Lead Independent Director; Board leadership is an interested Chair (Sachs).
- Committees (independent-only composition): Audit Committee (Elaine Orr, Chair; John J. Shaw, Bruce H. Spector—transitioning to Jeffrey Perlowitz) met 4 times in FY2024; Nominating & Governance Committee (Bruce H. Spector, Chair—transitioning to Jeffrey Perlowitz) met 4 times in FY2024.
- Attendance: The Board met 6 times in FY2024; each Director attended at least 75% of the aggregate number of Board/committee meetings of which they were a member. Directors are not required to attend the Annual Meeting; two Directors attended on May 30, 2024.
- Elections and voting: Preferred Stockholders alone elect two directors (Elaine Orr and David A. Sachs); Sachs’ 2025 election is solely by Preferred Stockholders; quorum requirements and virtual meeting procedures disclosed.
- Risk oversight: Conducted via Audit and Nominating & Governance Committees (independent-only), Lead Independent Director, executive sessions with Chief Compliance Officer, and auditor; CCO meets separately with Independent Directors at least annually.
Fixed Compensation
- Fee schedule: Independent Directors receive $50,000 annual fee; Nominating & Governance Committee Chair receives additional $5,000; Audit Committee Chair receives additional $10,000 (raised from $5,000 effective Jan 1, 2024).
- Interested Directors (including Sachs) receive no compensation from the Fund; no pension or retirement benefits accrue as part of Fund expenses for them.
| Director | Compensation from Fund (FY2024) | Pension/Retirement Benefits |
|---|---|---|
| David A. Sachs (Interested) | None | None |
| Seth J. Brufsky (Interested) | None | None |
| Elaine Orr (Independent; Audit Chair) | $68,185 | None |
| John J. Shaw (Independent) | $50,000 | None |
| Bruce H. Spector (Independent; N&G Chair; Lead Independent Director) | $55,000 | None |
Performance Compensation
| Component | FY2024 Detail | Vesting/Performance Metrics |
|---|---|---|
| Equity awards (RSUs/PSUs/DSUs) | Not disclosed for directors; Independent Directors compensated in cash fees; Interested Directors receive none | Not disclosed |
| Options | Not disclosed | Not disclosed |
| Bonus/Variable pay | Not disclosed for directors | Not disclosed |
| Clawbacks/COC provisions | Not disclosed for directors | Not disclosed |
Closed-end management investment companies like ARDC are exempt from NYSE compensation committee requirements; ARDC does not have a Compensation Committee.
Other Directorships & Interlocks
| Company/Fund | Role | Interlock/Exposure |
|---|---|---|
| Terex Corporation | Non-Executive Chairman | Potential indirect exposure if ARDC invests in Terex securities (not disclosed); governance network linkage |
| Konecranes | Director | Potential indirect exposure if ARDC invests in Konecranes securities (not disclosed) |
| CADC (CION Ares Diversified Credit Fund) | Interested Trustee | Ares-managed fund governance interlock |
| APMF (Ares Private Markets Fund) | Interested Trustee | Ares-managed fund governance interlock |
Expertise & Qualifications
- Extensive cross-platform investment committee participation across Ares Credit, Private Equity (Energy Opportunities, Extended Value, Asia), Real Estate (Global and Debt), and Equity Income Opportunity Strategy, supporting capital markets, underwriting, and risk oversight experience.
- Public company chairmanship and board service (Terex; Konecranes) with industrial operations exposure; fund governance across Ares-managed vehicles (CADC, APMF).
- Prior executive and investment roles spanning bank asset-liability management (Columbia S&L), merchant banking (Onyx), and advisory for family office (Taylor & Co.).
- Education: B.S., Northwestern University, Industrial Engineering & Management Science; university governance advisory roles.
Equity Ownership
| Item | Status |
|---|---|
| Dollar range of ARDC equity | Over $100,000 (as of April 1, 2025) |
| Preferred Stock ownership | None (none of the Directors owned Preferred Stock at April 1, 2025) |
| Ownership as % of common | Directors/officers as a group: <1% of common outstanding (individual % not disclosed) |
| Shares pledged/hedged | Not disclosed |
| Stock ownership guidelines | Not disclosed |
Governance Assessment
- Alignment and ownership: Sachs holds “Over $100,000” in ARDC, showing financial alignment; however, total director/officer group ownership is <1% of common outstanding, indicating limited aggregate insider ownership.
- Independence and potential conflicts: Sachs is an interested person (Ares Partner) and serves as Chair; this concentration of influence may present perceived conflicts given Ares is the Investment Manager; mitigants include majority-independent Board, Lead Independent Director, and independent-only Audit and Nominating & Governance Committees.
- Accountability and voting structure: Sachs is elected solely by Preferred Stockholders, which reduces common stockholder influence over his election; staggered Board terms may further entrench governance continuity.
- Engagement and oversight: Board met six times in FY2024 with at least 75% attendance by each Director; Audit and N&G Committees met four times each; CCO’s annual executive session with Independent Directors supports compliance oversight.
RED FLAGS
- Interested Chair: Chair is not independent due to Ares affiliation, elevating conflict risk when overseeing the Investment Manager.
- Preferred-only election: Sachs’ election determined solely by Preferred Stockholders, limiting common stockholder control over his Board seat.
- Multiple Ares-affiliated fund roles: Governance interlocks across Ares-managed funds (CADC, APMF) may create perceived related-party proximity; no specific related-party transactions disclosed with Sachs.
Notes: Director compensation is cash-only for Independent Directors; interested Directors receive no compensation from the Fund. No director equity awards, options, severance, change-of-control, clawbacks, or perquisites are disclosed for ARDC Directors. Section 16 compliance is stated as being met in prior proxies; specific insider Form 4 transactions are not disclosed in the proxy.