Harley-Davidson is reportedly nearing an agreement to sell a significant stake in its financing arm, Harley-Davidson Financial Services (HDFS), along with its existing motorcycle loan portfolio, in a deal valued at approximately $5bn, according to a report by Bloomberg.
The transaction is being discussed with private credit arms of Pacific Investment Management Company (Pimco) and KK, according to sources familiar with the matter.
The potential deal would include HDFS’s current book of motorcycle loans as well as future originations, with PIMCO and KKR seeking exposure both to the servicing platform and the consumer debt it generates. HDFS provides financing solutions to Harley-Davidson dealers for inventory acquisition and to customers purchasing Harley and LiveWire motorcycles.
The sale process, initiated earlier this year, positions Harley-Davidson to unlock capital amid a challenging market environment marked by subdued sales growth and increased competition from Honda and BMW. The iconic motorcycle maker is expected to release its latest financial results on 30 July, having seen its shares decline roughly 22% year-to-date.
CEO Jochen Zeitz recently confirmed ongoing progress in the HDFS transaction, which has attracted multiple bidders. Harley-Davidson has also retained an executive search firm to identify Zeitz’s successor ahead of his planned retirement.
Private credit investors have increasingly targeted asset-backed lending platforms, particularly in consumer finance segments such as auto loans, where investment-grade debt and stable cash flows are prevalent. Firms like Carlyle Group have similarly acquired stakes in loan originators – such as residential solar financier Sungage Financial – while also purchasing the underlying debt.
Harley-Davidson has a track record in the securitisation market, having previously packaged its motorcycle loan receivables into asset-backed securities, underscoring the strategic value of HDFS as both a financing vehicle and an investment asset.
The transaction could be finalised in the coming weeks, though terms and structure remain subject to ongoing negotiations.
