Aledade Secures $500 Million Credit Facility from Ares to Support Growth

Key Terms

senior secured credit facility financial

A senior secured credit facility is a loan or revolving line of credit where lenders have first legal claim on specific company assets (collateral) and the debt ranks above other obligations for repayment. For investors it signals where a lender sits in the repayment pecking order and how much protection creditors have if the company struggles, affecting credit costs, the company’s ability to borrow more, and potential recoveries in a default — like a mortgage taking priority over other claims on a house.

working capital facility financial

A working capital facility is a short-term loan or credit line a company uses to cover everyday operating needs — for example payroll, inventory purchases, or gaps between paying suppliers and getting paid by customers. Think of it like a business overdraft that smooths cash flow bumps; investors watch it because reliance on this facility shows how healthy a company’s cash flow is, how much interest or fees it pays, and whether borrowing limits or conditions could constrain growth.

value-based care medical

A health-care delivery approach that rewards providers for keeping patients healthy and improving outcomes instead of charging for each test or visit. For investors, it matters because it shifts where profits and losses come from—favoring providers and technologies that lower long-term costs, prevent complications, and demonstrate measurable results; think of it like paying a contractor only when the house stays sound, which changes who wins and loses financially.

Medicare Shared Savings Program (MSSP) regulatory

A Medicare Shared Savings Program (MSSP) is a U.S. government program that lets groups of doctors, hospitals and other health providers act like a team managing a patient population’s care budget; if the team lowers overall costs while keeping or improving quality, it shares in the savings. For investors, MSSP participation can change a provider’s revenue and profit risk—similar to a company switching from fixed sales to a bonus system tied to cutting costs and meeting performance targets—so it affects future cash flow, margins and valuation.

Accountable Care Organizations (ACOs) regulatory

Groups of doctors, hospitals and other health providers that work together to manage a defined population’s care, taking responsibility for both quality and overall costs. Like a neighborhood team coordinating chores to save money and avoid problems, ACOs aim to keep patients healthier while sharing any savings or losses with payers, so their performance can materially affect provider revenues, cash flow predictability and investment risk in healthcare companies.

fee-for-service model medical

A fee-for-service model is a payment system where providers are paid separately for each medical test, procedure or visit they deliver, like paying for each item at a grocery store rather than an all-you-can-eat pass. It matters to investors because revenue and profit depend directly on the number and price of services delivered, so changes in patient volume, payer rules or pricing pressures can quickly alter a provider’s cash flow and growth prospects.

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Expanded credit facility reflects Aledade’s expanding network and record performance in value-based care

BETHESDA, Md. & NEW YORK--(BUSINESS WIRE)-- Aledade (the “Company”), the nation’s largest network of independent primary care, and Ares Commercial Finance today announced a $500 million senior secured credit facility, led by Ares Credit funds, to support the Company’s continued growth and scale. The new credit facility, which has flexibility to expand to up to $650 million, doubles Aledade's current committed financing capacity.

As a national leader in the Medicare Shared Savings Program (MSSP), Aledade partners with primary care organizations to drive their success in value-based care by helping physicians get paid for improved outcomes rather than the quantity of services provided. In 2024, Aledade’s MSSP Accountable Care Organizations (ACOs) generated $1 billion in savings. The expanded credit facility provides working capital flexibility to help Aledade manage its expenses and support its partners in their transition from the existing fee-for-service model to success in value-based care.

"This working capital facility provides Aledade with the flexibility to bridge the natural timing gap in Medicare payments and the capacity to expand as we continue to scale our business,” said Farzad Mostashari, MD, co-founder and CEO of Aledade. “This allows us to accelerate shared savings distributions to our clinician partners, enabling them to reinvest in their patients and practices sooner to sustain our momentum in value-based care.”

Aledade currently supports more than 20,000 clinicians in 2,400 practices and community health centers across 46 states, serving nearly 3 million Medicare patients through value-based care programs. In the 2024 MSSP performance year, 93% of Aledade's physician-led ACOs achieved shared savings compared to under 70% among non-Aledade participants. Since 2014, Aledade and its partners have driven more than $3 billion in health care savings for U.S. taxpayers.

“As a public benefit corporation, Aledade’s mission includes improving patient care and lowering its overall cost,” added Dan Berger, Managing Director in Ares Commercial Finance. “We are pleased to be a catalyst to further these goals.”

“We are excited to support Aledade’s growth plans as its sophisticated technology continues to enable the expansion of value-based primary care on a national level to the benefit of patients and physicians while helping to drive savings for the Centers for Medicare and Medicaid Services,” said Todd Gordon, Managing Director and Head of Healthcare ABL in Ares Commercial Finance.

About Aledade

Aledade, a public benefit corporation, is the largest network of independent primary care, enabling clinicians to deliver better patient outcomes and generate more savings revenue through value-based care. Aledade’s data, personal coaching, user-friendly workflows, health care policy expertise, strong payer relationships and integrated care solutions enable primary care organizations to succeed financially by keeping people healthy. Together with more than 2,400 practices and community health centers in 46 states and the District of Columbia, Aledade manages accountable care organizations that share in the risk and reward across more than 200 value-based contracts representing nearly 3 million patient lives. To learn more, visit www.aledade.com or follow on X (Twitter), Facebook or LinkedIn.

About Ares Commercial Finance

Ares Commercial Finance (“ACF”) is the commercial finance platform of Ares Management Corporation. ACF provides credit facilities to middle market and lower-middle market companies. ACF addresses a wide scope of industries including manufacturing, distribution, wholesale, retail and consumer products and services as well as hospitals, skilled nursing facilities, and all other segments of the healthcare sector. Leveraging the diverse product offering and experience of the Ares platform, ACF collaborates with borrowers to deliver creative, flexible, and customized financing solutions for a variety of financing needs: general refinancing, working capital/growth, acquisitions, restructuring/turnaround situations, debtor-in-possession/exit financing, and special accommodation financing. For more information on ACF visit https://www.arescommercialfinance.com/.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to advance our stakeholders' long-term goals by providing flexible capital that supports businesses and creates value for our investors and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of September 30, 2025, Ares Management Corporation's global platform had over $595 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

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Source: Aledade