Aledade, the nation’s largest network of independent primary care practices, has secured a $500 million senior secured credit facility from Ares Commercial Finance to accelerate its national expansion and strengthen its position in value-based care. The financing, led by Ares Credit funds, includes the option to increase the total facility to up to $650 million, doubling the company’s committed capital capacity.
Aledade is a leading participant in the Medicare Shared Savings Program (MSSP), partnering with primary care organizations to help physicians transition from fee-for-service reimbursement to value-based models tied to improved patient outcomes. In 2024, the company’s MSSP Accountable Care Organizations generated $1 billion in savings. The new credit facility will provide greater working capital flexibility as Aledade continues to invest in technology, optimize operations, and support clinicians as they shift to value-based arrangements.
The company currently works with more than 20,000 clinicians across 2,400 practices and community health centers in 46 states, covering nearly 3 million Medicare patients. In the 2024 performance year, 93% of the company’s physician-led MSSP ACOs generated shared savings, compared to under 70% for non-Aledade organizations. Since its founding in 2014, Aledade and its partners have produced more than $3 billion in savings for U.S. taxpayers.
The expanded financing is intended to further Aledade’s mission as a public benefit corporation: improving patient care quality while reducing overall system costs.
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“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. 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.”
Farzad Mostashari, MD — Co-Founder and CEO, Aledade
“As a public benefit corporation, Aledade’s mission includes improving patient care and lowering its overall cost. We are pleased to be a catalyst to further these goals.”
Dan Berger — Managing Director, Ares Commercial Finance
“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.”
Todd Gordon — Managing Director and Head of Healthcare ABL, Ares Commercial Finance
