Bain Capital to exit Hero MotoCorp

The firm expects to offload its remaining share in the motorcycle maker and raise about $115 million.

Private equity firm Bain Capital is selling its remaining stake in Hero MotoCorp, the largest motorcycle manufacturer in India, for about $115 million.

Bain will generate a 1.4x return on the transaction, including dividends, according to a source familiar with the deal.

In 2011, Bain and Singapore’s sovereign wealth fund GIC invested in Hero Investments, the investment arm of Hero MotoCorp’s parent company Hero Group, to finance the buyout of Honda Motors’ 26 percent stake in the company. Bain and GIC made investments through respective affiliates BC India Partners and Lathe Investment. That stake has been valued at about $852 million, according to reports.

Bain invested $566 million from one of its global funds. The following year, Hero Investments was merged with Hero MotoCorp, translating Bain’s stake into 8.6 percent, while GIC took a 3.7 percent stake as reported by Private Equity International.

The firm had been selling its stake in Hero MotoCorp since June last year. In November 2014, it sold shares for about $400 million. Previously in June, it sold a portion of its stake for about $250 million, excluding dividends.

Bain is currently raising funds for Bain Capital Asia Fund III targeting $2.5 billion.