Ares Management has spearheaded a $1.8 billion senior loan facility to support the acquisition of Veritas Technologies by a consortium of private equity firms. The financing underscores growing appetite for large-scale private credit deals in tech infrastructure.
- Ares Management led a $1.8 billion senior secured loan for the Veritas Technologies acquisition
- Deal value totals $8.5 billion, with private equity consortium including KKR and Thoma Bravo
- Loan carries SOFR plus 4.25% and has a 7-year term with 10% annual amortization
- Veritas generated $1.3 billion in annual revenue in 2025, supporting credit profile
- Ares coordinated 14 institutional lenders in the syndication
- Transaction expected to close in Q2 2026
Ares Management has emerged as the lead arranger for a $1.8 billion senior secured loan backing the acquisition of Veritas Technologies, a leading data management and cybersecurity firm. The deal, structured as a first-lien credit facility, reflects escalating capital deployment by private credit firms into strategic technology assets amid rising demand for digital infrastructure resilience. The loan is part of a broader $8.5 billion transaction value, with the acquisition led by a consortium of private equity investors, including KKR and Thoma Bravo. Ares coordinated the syndication across 14 institutional lenders, including global asset managers and pension funds, highlighting strong investor confidence in the credit quality and long-term cash flow potential of Veritas’s enterprise software platform. The $1.8 billion facility carries a floating interest rate of SOFR plus 4.25%, reflecting market conditions in early 2026. With a 7-year term and amortization of 10% annually, the loan is designed to support the acquirers’ integration and growth plans, including expansion into AI-driven data governance services. This represents one of the largest private credit commitments in the tech sector this year. The transaction has drawn attention from industry observers as a sign of private credit firms stepping into roles traditionally held by public banks, especially in complex, high-value acquisitions. The move also signals confidence in Veritas’s recurring revenue base, which generated $1.3 billion in annual revenue in 2025, underpinning the loan’s credit security. The deal marks Ares’ second major private credit lead in the tech sector within six months, following a $1.2 billion loan for a data center portfolio in June 2025. Its proactive role underscores a strategic pivot toward long-term, asset-backed lending in high-growth technology verticals. The transaction is expected to close in Q2 2026, pending regulatory approvals and customary closing conditions.