HPS Investment Partners and Sixth Street have provided a roughly $700m private credit financing to support Elara Caring, according to Bloomberg.

The debt package accompanies a strategic investment from Ares Management’s private equity arm and healthcare provider DaVita. The capital will help fund expansion in the US home healthcare market.

The transaction underscores private credit’s growing role in healthcare buy-and-build strategies. Moreover, it highlights how direct lenders are increasingly partnering with private equity sponsors to structure large-scale growth financings.

At the same time, demand fundamentals remain compelling. Ageing Baby Boomers continue to reshape senior care. A 2024 AARP survey found that most adults prefer to remain at home as they age.

Representatives for Ares, HPS, and Elara declined to comment.

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