Wasabi secures USD $250 million credit facility from Bain

Wasabi Technologies has secured a USD $250 million credit facility led by Bain Capital, with participation from BTG Pactual Global Alternatives, Neuberger Specialty Finance, Energy Impact Partners and Aksia.

The financing will support investment in the company's cloud storage platform, infrastructure and international expansion. It adds debt funding after a recent USD $70 million equity round that valued Wasabi at USD $1.8 billion and follows its acquisition of Lyve Cloud from Seagate.

The transaction extends backing from private credit and investment firms as cloud infrastructure providers seek to capture rising demand for data storage driven by artificial intelligence and other data-intensive applications.

Wasabi operates in more than 100 countries across 16 storage regions globally. Its customers include organisations such as Cornell University and Liverpool Football Club.

According to figures disclosed by the company, Wasabi has raised more than USD $700 million in total funding. That mix of debt and equity comes as it looks to strengthen its position in the cloud storage market, where customers weigh cost, data access and geographic reach against the scale offered by larger providers.

Michael Bayer, Executive Vice President and Chief Financial Officer at Wasabi, said the financing reflected lender confidence in the company despite a tougher borrowing environment.

"This is a more selective private lending market, but we've built a strong, disciplined business that continues to attract support from leading financial institutions," Bayer said.

He said the investment plan also reflects changing storage demand.

"We're investing in our infrastructure to meet growing demand for data, especially as AI and modern applications require scalable, accessible storage," Bayer said.

Recent moves

The credit facility follows a period of activity for the company. Wasabi recently bought Lyve Cloud from Seagate, expanding its cloud storage footprint, and closed an equity financing led by L2 Point Management with participation from Everpure, formerly Pure Storage.

Those moves suggest an effort to broaden its reach in a segment that has grown more competitive as businesses generate larger volumes of data and seek ways to store and retrieve it without steep transfer costs. Wasabi is known for offering storage with no egress or API request fees, a pricing model it has used to differentiate itself from larger public cloud providers.

It has also been developing additional storage products and resiliency features for AI workloads. Among them is Wasabi Fire, an NVMe-based storage class aimed at compute-intensive AI and machine learning training.

Lender view

Bain Capital said the financing was supported by operational progress and customer growth.

"Wasabi's growth trajectory, strong fundamentals, and expanding global customer base reflect the growing need for reliable, cost-effective cloud storage," said Andrea Lucido, Director at Bain Capital.

Lucido added: "The company is delivering innovative and secure data infrastructure at a time when data is becoming increasingly critical to how enterprises operate, make decisions, and adopt technologies such as AI."

The deal also highlights the continued role of private credit in funding technology infrastructure companies, particularly those with recurring revenue and capital needs that may not fit traditional bank lending. For storage providers, this can include spending on data centre presence, hardware, software development and regional expansion.

Wasabi did not disclose the facility's detailed terms, but the scale of the borrowing suggests it is seeking flexibility to fund expansion without relying solely on additional equity issuance. In the current market, this can help existing shareholders avoid dilution while giving the company room to finance growth projects and acquisitions.

Lincoln International served as financial adviser and placement agent on the transaction.