FreshBooks Secures $125 Million Debt Financing from Morgan Stanley
Deal News | Mar 20, 2025 | Morgan Stanley (MSCP)
Morgan Stanley Investment Management has announced that funds managed by Morgan Stanley Expansion Capital and Morgan Stanley Private Credit have provided $125 million in senior debt financing to FreshBooks, a prominent player in cloud-based accounting software for small businesses. This financing aims to refinance existing debt and support FreshBooks' continued growth. Based in Toronto, FreshBooks specializes in SaaS solutions for service-based small and medium-sized businesses primarily in the U.S. and Canada, offering a platform for services ranging from invoicing to payroll processing. Key figures from Morgan Stanley, including Pete Chung and Ashwin Krishnan, expressed their confidence in FreshBooks' growth potential, underpinned by the ongoing digital transformation and a shift towards e-invoicing. The investment was led by Morgan Stanley Executive Director Nick Nocito, and FreshBooks CEO Shaheen Javadizadeh conveyed excitement at the partnership with Morgan Stanley's expansion and credit groups, who will provide expertise for FreshBooks' next growth chapter.
Sectors
- Financial Services
- Software as a Service (SaaS)
- Technology
Geography
- United States – One of the primary markets for FreshBooks, where the digital transformation of financial services is accelerating.
- Canada – FreshBooks is based in Toronto, making Canada a significant geographical focus.
- North America – The financing effort targets North American markets, where FreshBooks primarily operates.
Industry
- Financial Services – Morgan Stanley, a leading financial services firm, is involved in this debt financing arrangement.
- Software as a Service (SaaS) – FreshBooks operates in the SaaS space, providing cloud-based accounting software for small businesses.
- Technology – The transaction supports a technology company specializing in digital accounting solutions.
Financials
- 125,000,000 – The total amount of senior debt financing provided by Morgan Stanley Investment Management to FreshBooks.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Morgan Stanley Investment Management | PE Firm | Company | A division of Morgan Stanley focusing on investment management, including growth and private credit investments. |
| Morgan Stanley Expansion Capital | Investor | Company | The growth-focused private investment platform within Morgan Stanley Investment Management. |
| Morgan Stanley Private Credit | Investor | Company | A private credit platform within Morgan Stanley Investment Management focused on direct lending. |
| FreshBooks | Target Company | Company | A Toronto-based firm providing SaaS accounting solutions primarily for SMBs in the U.S. and Canada. |
| Shaheen Javadizadeh | CEO of FreshBooks | Person | Chief Executive Officer at FreshBooks, overseeing strategic growth and partnership initiatives. |
| Pete Chung | Head of Morgan Stanley Expansion Capital | Person | A key figure at Morgan Stanley involved in growth-focused investment. |
| Ashwin Krishnan | Co-head of Morgan Stanley Private Credit North America | Person | Co-head handling North American private credit investments for Morgan Stanley. |
| Nick Nocito | Executive Director, Morgan Stanley | Person | Executive Director who led the FreshBooks financing deal at Morgan Stanley. |