Holman invests in FM Capital; both will boost auto tech deals

Holman, an automotive services company with a large dealership group, has acquired a minority stake in FM Capital, a venture capital firm targeting the auto and transportation industries.

The investment is designed in part to help both companies move more quickly to identify, fund and build promising automotive technology companies. It also appears to be an unusual move for an automotive services company to become a general partner in automotive venture capital.

"It's definitely unique what we're doing here," said Bill Cariss, CEO of Holman Growth Ventures, Holman's investment arm.

Neither side disclosed the specific investment amount, though Cariss told Automotive News the number is "over seven figures."

Chase Fraser, founder and managing partner at FM Capital, said his firm was excited about Holman coming on board.

"We very much wanted Holman as part of this," Fraser said. "Their reputation is stellar."

Holman, of Mt. Laurel, N.J., and FM Capital, of Boulder, Colo., have a relationship going back nearly a decade, according to Mark Norman, managing partner at FM Capital. Holman has been an investor in FM Capital's second and third VC funds and has made an additional capital commitment to its fourth, which is close to its $150 million goal, Norman said. Holman's minority stake is a separate investment, he said.

Holman is a global company that produces $9 billion in annual revenue and has more than 6,500 full-time employees, Cariss said. The venture capital arm that he runs carries 13 portfolio companies and three venture capital funds so far. Cariss said Holman also intends to expand into private equity, with direct investment in more established auto technology companies. Venture capital is typically focused on startups.

While Holman will be working with FM Capital more closely on some projects, it plans to continue investing on its own, Cariss said.

"We'll definitely be working with multiple partners and FM Capital will be part of that," he added.

Beyond VC, Holman runs businesses in areas including fleet management and leasing, commercial vehicle equipment manufacturing, commercial and personal insurance and risk management. Holman Automotive ranks No. 32 on Automotive News' most recent listing for the top 150 U.S. dealership groups, with 24,831 new vehicles retailed in 2023. The company remains family owned.

It is that dealership connection that makes Holman's minority investment in FM Capital particularly interesting, said Steve Greenfield, general partner of Automotive Ventures.

"This will be buzzworthy in the boardrooms of the larger dealer groups [that will] examine this and explore whether or not there are opportunities for them to do the same thing," Greenfield said.

Norman said Holman's diverse business focus will help inform future investments as automotive retail continues evolving.

"They in particular are at a great cross section for where we see the industry heading," Norman said.