Aledade secures $500m credit facility from Ares

Aledade, the largest network of independent primary care practices in the US, has secured a US$500 million senior secured credit facility from Ares Commercial Finance, the companies announced on Monday. The arrangement, led by Ares Credit funds, doubles Aledade’s committed financing capacity and includes an option to expand the facility to as much as $650 million.

The substantial infusion of capital comes as Aledade continues to scale its footprint in value-based care. The company, a major participant in the Medicare Shared Savings Program (MSSP), partners with primary care organisations to help physicians shift away from fee-for-service reimbursement and toward payment models that reward improved patient outcomes. In 2024, Aledade’s MSSP Accountable Care Organisations generated a record US$1 billion in savings, underscoring its growing influence in the sector.

Executives said the new credit facility will provide working-capital flexibility to support both the company’s operations and its physician partners as they transition deeper into value-based models.

“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’s network encompasses more than 20,000 clinicians across 2,400 practices and community health centres in 46 US states, collectively serving nearly 3 million Medicare patients. The company reported that 93% of its physician-led ACOs achieved shared savings in the 2024 MSSP performance year—substantially higher than the less than 70% of non-Aledade participants who reached that mark. Since its founding in 2014, Aledade and its partners have produced more than $3 billion in savings for US taxpayers.

Leaders at Ares said the financing aligns with both organisations’ missions to expand access to high-quality, cost-effective care.

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

Todd Gordon, Managing Director and Head of Healthcare ABL at Ares Commercial Finance, added that Aledade’s technology-enabled model positions it for continued national expansion. “We are excited to support Aledade’s growth plans as its sophisticated technology continues to enable the expansion of value-based primary care … to the benefit of patients and physicians while helping to drive savings for the Centers for Medicare and Medicaid Services,” he said.