Morgan Stanley Investment Management announced that funds managed by Morgan Stanley Expansion Capital and Morgan Stanley Private Credit have provided US$125 million in senior debt financing to FreshBooks, a provider of cloud-based accounting software for small businesses.

This investment will be used to refinance existing debt and support the company’s continued growth.

Toronto-based FreshBooks offers SaaS software designed for service-based small and medium-sized businesses (SMBs), with a primary focus on the US and Canadian markets.

Functioning as a core operating system for its customers, FreshBooks provides an intuitive platform that facilitates invoicing, payment processing, time tracking, and payroll management.

Pete Chung, Head of Morgan Stanley Expansion Capital, and Ashwin Krishnan, North America Co-Head of Morgan Stanley Private Credit, stated:

“We believe FreshBooks’ SaaS accounting software benefits from strong secular tailwinds, including increasing digital transformation and a shift to global e-invoicing and payments digitisation.”

“We believe FreshBooks has a tremendous market opportunity ahead of it and are confident that our growth credit and capital solutions teams are uniquely positioned to support FreshBooks in this important stage of its growth.”

Shaheen Javadizadeh, CEO of FreshBooks, commented:

“We’re thrilled to partner with Morgan Stanley’s Expansion Capital and Private Credit groups, who support our vision of empowering small business owners through technology. FreshBooks looks forward to leveraging their expertise in this next chapter of growth.”

The investment in FreshBooks was led by Morgan Stanley Executive Director Nick Nocito.

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