Polaris announced today it will sell its majority interest in Indian Motorcycle to Carolwood LP, a private investment group. Indian Motorcycle will become a separate company, no longer part of Polaris, which makes the Slingshot three-wheeler, ATVs, snowmobiles, and other vehicles. The sale is expected to close in the first three months of 2026. The financial terms of Carolwood’s acquisition of a majority stake in Indian have not been publicly disclosed.
For riders, not much will change right away. Indian Motorcycle’s factories in Spirit Lake, Iowa, and Monticello, Minnesota, along with a design center in Switzerland, will remain with the new company, a promising sign of continuity. About 900 workers, including engineers and designers, will continue to work for Indian Motorcycle. Dealerships worldwide will continue selling bikes, parts, and gear, and offering service.
Mike Dougherty, Polaris’ President, On Road and International, will oversee Indian until the deal closes. Dougherty, who’s been with Polaris for nearly 28 years, plans to retire after the sale. Polaris credits him with making Indian the top mid-size cruiser brand in the U.S. last year.
Carolwood has picked Mike Kennedy, a 30-year motorcycle industry expert who has worked at Harley-Davidson, to lead Indian Motorcycle as its new CEO after the sale.
“Indian Motorcycle has defined American motorcycling for over a century, and Carolwood’s role is to ensure that legacy thrives for the next hundred years.” Adam Rubin, Principal at Carolwood, said. “Mike Kennedy brings over 30 years of experience leading iconic motorcycle and performance brands and will play a critical role in stewarding Indian Motorcycle’s growth.”
Carolwood LP is a private equity firm started in 2014 by Rubin and Andrew Shanfeld. It’s based in Los Angeles and focuses on buying businesses and properties that can be improved and grown over time. The firm handles real estate deals, such as purchasing office buildings in large cities such as Los Angeles, and invests in growth equity—putting money into companies to help them expand.
Carolwood looks for assets that are part of larger companies but ready to stand alone. It has invested in consumer brands, industrial firms, media outlets, technology startups, food and beverage labels, and sports businesses. For example, in 2020, Carolwood invested in Bitkraft, a gaming and esports company, and Jomboy Media, an internet content creator.
“Indian Motorcycle is an iconic brand built on American heritage, craftsmanship, and most importantly, a community of riders,” explains Shanfeld, a Principal at Carolwood. “We’re honored to help usher in its next chapter as an independent company and to support its continued growth as a symbol of performance and pride. At Carolwood, we target iconic brands that we can passionately impact. Indian Motorcycle allows us to do just that.”
Indian Motorcycle has a long history as one of America’s oldest motorcycle brands. It started in 1901 as the Hendee Manufacturing Company in Springfield, Massachusetts. Racing successes built Indian’s reputation, but by 1953, money troubles forced it to cease production.
Over the subsequent decades, the brand bounced around. In 1963, Floyd Clymer bought the rights and sold foreign-made motorcycles under the Indian name. After Clymer’s death in 1970, Indian existed in name only, with the logo attached to a wide range of motorcycles manufactured by other companies, as ownership of the name was disputed.
Indians were made in Gilroy, California, under the name Indian Motorcycle Company from 1999 to 2003, using S&S engines and tapping into historic model names, such as Chief and Scout. In 2006, London-based private investment firms Stellican and Novator Partners revived Indian with limited runs of the Gilroy design, but made in Kings Mountain, North Carolina.
In April 2011, Polaris bought Indian from Stellican and Novator Partners for about $20 million. Polaris moved production to Iowa and Minnesota and introduced all-new, Polaris-designed Indians in August 2013. The new Indians tapped heavily into Indian’s past and featured the air-cooled pushrod V-twin Thunder Stroke 111 engine. Under Polaris, Indian found mid-size cruiser success with the more contemporary Scout series.
Polaris says the move will provide the Minnesota-based company with about $50 million each year. Indian Motorcycle brought in $478 million last year, about seven percent of Polaris’ total sales. “This deal helps Indian Motorcycle grow on its own and lets Polaris invest in our strongest areas,” according to Polaris CEO Mike Speetzen.
