Fusion Connect, an Atlanta-based leader in cloud communications services, announced an $85 million term loan from Hark Capital through a NAV-based loan agreement. The funding will support operating capital, debt reduction, and strategic investments to accelerate growth, reinforcing Fusion’s position in the competitive cloud communications market.
Announced May 7, 2025, in Atlanta, GA.
$85M NAV-based term loan from Hark Capital.
Funds allocated for operating capital, debt repayment, and strategic investments.
Investments target talent, technology, infrastructure, customer service, and products.
Fusion Connect serves mid-market and enterprise clients with a 100% uptime guarantee.
Partnership reflects strong lender confidence in Fusion’s growth strategy.
Fusion Connect, known for its comprehensive suite of cloud-based communication services, secured the $85 million loan to bolster its financial foundation and drive expansion, as detailed in a May 7, 2025, press release. “We are thrilled to announce our new partnership with Hark Capital,” said Brian McClintock, CFO of Fusion Connect. “This financing not only fortifies our foundation, but it also reflects the strong confidence our lenders and owners have in Fusion’s future.”
The proceeds will be used to:
Operating Capital: Ensure liquidity for day-to-day operations.
Debt Reduction: Pay down existing liabilities to improve financial health.
Strategic Investments: Enhance talent, technology, infrastructure, customer service, and product offerings.
This funding builds on Fusion Connect’s prior financial restructuring, including a 2022 recapitalization that raised $55 million and reduced debt by over 80%, led by Morgan Stanley Private Credit.
Fusion Connect differentiates itself with a one-vendor model, offering managed broadband access, UCaaS, CCaaS, SD-WAN, managed security, and Microsoft Teams solutions, all supported by a US-based team and a 100% uptime guarantee. The company specializes in serving mid-market and enterprise organizations, particularly those with multi-location operations, ensuring high-quality service and rapid issue resolution.
The loan will fuel investments in:
Talent: Expanding expertise to enhance service delivery.
Technology and Infrastructure: Upgrading cloud and network capabilities.
Customer Service: Strengthening personalized support for higher satisfaction.
Products: Innovating to meet evolving client needs.
Hark Capital, part of P10, Inc. (NYSE: PX), specializes in non-dilutive NAV loans and has deployed over $1.5 billion across 130+ transactions since 2013. Its partnership with Fusion Connect underscores confidence in the company’s growth potential, aligning with Hark’s focus on innovative fund finance solutions for private equity-backed firms.
The cloud communications market is projected to grow at a 13.3% CAGR through 2030, driven by demand for unified communications and remote work solutions. Fusion Connect’s funding aligns with 2025 trends, as competitors like RingCentral and 8x8 also invest heavily in AI-enhanced UCaaS and CCaaS. Posts on X reflect positive sentiment, with users noting the loan’s potential to strengthen Fusion’s market position, though some express caution about debt management.
Fusion Connect’s prior $55 million raise in 2022 enabled product development and market expansion, positioning it as a reliable partner for channel partners. The new loan is expected to further enhance its competitive edge, particularly in serving multi-location enterprises.
The $85 million loan positions Fusion Connect to capitalize on market opportunities while maintaining financial stability. By reducing debt and investing in innovation, the company aims to deliver exceptional value to customers and partners. However, prudent debt management will be critical, given the capital-intensive nature of telecom infrastructure.
As a leading cloud communications provider, Fusion Connect takes pride in delivering a full suite of US-based managed services that remove all the complexity so customers can focus on running their business. We use our deep technical expertise and industry know-how to build the 'right-fit', best of class communications and collaboration solutions for our customers right here in the US. Fusion Connect is proven at delivering customer success for managed broadband access, UCaaS, CCaaS, SD-WAN, managed security, or Microsoft Teams solutions. Fusion Connect is unique in providing exceptional customer support backed by an industry-leading, uptime service guarantee.
Since 2013, Hark Capital has been providing innovative fund finance solutions to private equity sponsors and their portfolio companies, with a focus on NAV and management company facilities. Since inception, Hark Capital has deployed over $1.5 billion across 130+ transactions with 60+ sponsors across the US, Canada and Europe.
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