Ares ventures into the cloud

Massachusetts-based Sonian, a tech company that handles cloud-based archiving, has lined up a $7.5 million venture debt financing from Ares Capital Corporation.

Sonian, a company that offers cloud-based archiving services, has secured $7.5 million in venture debt from Ares Capital Corporation. The financing will be used to fund product development and staffing as the company continues to expand, said the firm.

Ares’ BDC launched Ares Venture Finance earlier this year. The new subsidiary, Ares Venture Finance LP was licensed by the Small Business Administration to operate as a Small Business Investment Company (SBIC).  

“The license will provide us with up to $150 million of attractively priced long-term debt, which we would anticipate using to finance our future investments in smaller companies, particularly our venture capital backed portfolio companies,” Ares Capital chief financial officer Penni Roll said at the time. 

This financing follows rapid corporate growth and a record quarter in sales and profitability, Sonian said in a statement. In the past year, Sonian has garnered more than 2,500 new customers to bring its total client count to more than 20,000. To accommodate the company’s rapid growth, Sonian has added 13 employees in the past 12 months, including the appointment of Tim McKinnon as chief executive officer.

Sonian was an early innovator in cloud-based archiving, The Dedham, Massachusetts-based company has more than 20,000 customers in 40 countries. 

Ares Capital is a business development company with about $9.1 billion in assets under management. The BDC is housed within Ares Management, the US alternative investment firm that handles $87 billion in assets across private equity, direct lending, tradable credit and real estate.