Houlihan Lokey Advises myKaarma

Houlihan Lokey is pleased to announce that H.I.G. Capital has sold a minority stake in its portfolio company, myKaarma, to Warburg Pincus.

H.I.G. Growth Partners (H.I.G. Growth), the dedicated growth capital investment affiliate of H.I.G. Capital, a leading global alternative investment firm with $74 billion of capital under management, is pleased to announce that it has sold a minority stake in its portfolio company myKaarma, a leading provider of end-to-end service lane solutions for automotive dealerships, to Warburg Pincus, a leading global growth investing firm. As part of the transaction, Warburg Pincus will join myKaarma’s board of directors.

Headquartered in Long Beach, California, myKaarma offers a comprehensive, cloud-native workflow AI platform built for franchise auto dealerships. The company’s suite of solutions streamlines service leads, operations, and payments, enhances customer experience, and improves service advisor and technician efficiency to drive measurable revenue improvement. Since H.I.G. Growth’s initial investment, myKaarma has experienced strong growth through product innovation, category expansion, operational execution, and a loyal and growing customer base.

Warburg Pincus brings extensive experience in automotive software and next-generation technologies, including a deep understanding of generative and agentic AI. The firm’s track record of scaling middle-market software companies through operational expertise and strategic support will help to position myKaarma for continued success in its next phase of growth.

“We are proud of the transformation and growth myKaarma has achieved during our ownership,” said Evan Karp, Managing Director at H.I.G. Growth. “We believe Warburg Pincus is a great addition as a long-term partner to support the company’s continued innovation and expansion, given its deep domain expertise and strong history of scaling software businesses.”

“In partnership with the H.I.G. Growth team, myKaarma has more than tripled in size since 2022, and we believe the most exciting, AI-enabled growth opportunities still lie ahead. We are thrilled to now have Warburg Pincus join as a significant investor in our company. With both H.I.G. and Warburg’s operational support and experience, we are poised to become the dominant player in service lane and fixed ops technology,” said Ujj Nath, CEO of myKaarma.

“myKaarma is the market leader in service marketing, service lane technology, and dealership payments, distinguished by its exceptional customer advocacy. Fixed operations remains a critical profit engine for dealerships and OEMs, and myKaarma leverages innovative AI and embedded finance solutions to help clients deliver best-in-class consumer outcomes. We look forward to applying our expertise in automotive technology, integrated payments, and generative AI to support the company’s continued growth,” said Michael Ding, Managing Director, Warburg Pincus.

Houlihan Lokey served as the lead financial advisor to myKaarma in connection with the transaction. This deal highlights Houlihan Lokey’s continued success as a leading advisor in the transportation technology and vertical software with integrated payments categories.

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