PE Fund Investments
Apollo Global to invest $125-M in Hero FinCorp: report
Apollo Global Management has agreed to invest around INR 940 crore (USD 125 million) to buy into Hero Fincorp, the lending arm of the Hero Group. This is part of Hero Fincorp's INR 2,000 crore capital raise from existing and new investors. Apollo's investment is linked to certain financial parameters and values Hero Fincorp at around INR 12,000 crore ($1.6 billion), post money. Apollo will end up owning a 9-11% stake in the NBFC on a fully diluted basis. It will also have a board seat. Publicly listed Hero MotoCorp owns 40% of Fincorp, while promoters (the Munjal family) own 30-35%. Hero Fincorp had first forayed into financing of two wheelers and expanded into the SME and corporate financing segment. It also obtained a housing finance business licence in 2017. The company has a current loan book of around INR 28,000 crore which is between the retail (50%) and SME (30%) corporate loan (20%) segments.
From the Venture Intelligence PE-VC Deal Database: Between Sep-2016 and Feb-2020, Hero Fincorp had raised about USD 185 million from ChrysCapital, Credit Suisse and Apis Partners (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)
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