Holman obtains minority interest in FM Capital
It’s usually the other way around.
But a major move in the automotive investment space this week is said to be the first time that an integrated automotive services organization has obtained a general partner interest in an auto industry venture capital firm.
FM Capital, a venture capital firm focusing on early- to mid-stage companies, said Tuesday that Holman has acquired a minority stake in the company.
Holman is investing in FM Capital’s Fund IV as a limited partner and as a minority general partner.
“We’ve collaborated with Holman for nearly a decade and they share our conviction about the massive opportunity in the transformation of the automotive industry,” FM Capital founder and managing partner Chase Fraser said in a news release.
“Their unrivaled combination of dealerships, fleet leasing and management services, and corporate venture capital arm is truly unique in the automotive sector, making Holman the ideal strategic partner for FM Capital.”
While it may seem counter to convention that an automotive services company would invest in a VC, Holman has been investing in FM Capital’s funds for almost a decade.
Its venture capital arm, Holman Growth Ventures, has been utilizing strategic investments and joint ventures with early-stage companies to boost its view into how the auto industry is changing.
“We saw a tremendous opportunity to not only deepen our partnership with FM Capital, but also align our automotive expertise with a renowned investment firm, ensuring our venture capital business will continue to flourish,” Holman Growth Ventures CEO Bill Cariss said in the release.
“We’ve seen first-hand the value FM Capital brings to startups as well as investors. Together, we believe we can more quickly identify, fund, and scale promising automotive technologies that solve pain points and drive innovation across the industry,” Cariss said.
FM Capital managing partner Mark Norman added: “Holman’s investment sends a strong signal to the market that FM Capital has the vision, team, process, and now additional human and financial capital to deliver on our mission to scale transformative companies.
“Their team, their network and their scale will create meaningful opportunities to create value for our portfolio companies and limited partners alike.”