Apollo Hybrid Value to Invest $125 Million in Hero FinCorp, One of India’s Fastest Growing Non-Bank Financial Companies
Apollo (NYSE: APO) today announced that funds within its Hybrid Value strategy have committed to invest $125 million in Hero FinCorp Limited (“HFL” or the “Company”), one of the largest privately owned non-banking financial companies (“NBFCs”) in India with a $3.7 billion loan book. The commitment is part of a $267 million fundraise by the Company, in which Apollo funds are investing alongside the Hero Group, a key sponsor of HFL. This investment continues the strong pace of activity of Apollo’s Hybrid Value strategy, which has led more than $11 billion of investment commitments since inception.
The investment will support HFL’s growth strategy as the Company continues to diversify its product offerings across retail and corporate lending. HFL was founded as a financier to customers of its parent company, Hero Motocorp, the world’s largest two-wheeler manufacturer, and the Company has since expanded to become one of India’s fastest growing NBFCs. Through this fundraise, HFL was seeking a value-added capital partner to help the execute its growth plans across various product segments. Apollo’s Hybrid Value team was able to create a timely equity solution, enabling HFL’s shareholders and management team to pursue their goals.
“We are pleased to support Hero FinCorp through our Hybrid Value platform, helping the business accelerate its growth in an industry which we believe has significant tailwinds in India,” said Matt Michelini, Partner, Head of Asia Pacific and co-Head of Hybrid Value at Apollo. “Our team is excited to strategically partner with the Munjal family to support them in scaling their financial services business, one of the Hero Group’s leading franchises. This is the third investment made by Hybrid Value in Asia in the last 9 months, highlighting our continued focus on expanding Apollo’s presence across Asian markets, including India.”
Photo courtesy of Ashwini Chaudhary.