Ares Management Corp. led a group of private credit lenders that increased financing for a health-care software platform Veritas Capital is acquiring. The deal leverages a staple clause, a common provision that lets the buyer keep the target’s existing debt in place. This structure speeds up acquisitions by avoiding lengthy refinancing talks and gives lenders more certainty.

Veritas Capital, a private equity firm focused on technology and health care, has long relied on private credit for its buyouts. By using a staple, the firm can move quickly to close deals while keeping current lenders on the hook. For Ares, leading this upsized loan reinforces its role as a go-to lender in competitive auctions, where speed and certainty often win the mandate.

Private credit firms have grown their lending volumes this year as banks pull back from leveraged finance. Ares, Blue Owl, and other direct lenders have competed fiercely for staple financing deals, which bundle acquisition funding with the target’s existing loans. The model reduces execution risk for sponsors but concentrates exposure for lenders if the company’s performance falters after the sale.

Investors will watch how this loan performs once Veritas takes control. If the software platform delivers stable cash flow, other sponsors may push for similar staple structures, further shifting loan market share to non-bank lenders. If it struggles, banks could regain footing as sponsors seek more flexible refinancing options later.