H.I.G. Capital Sells Minority Stake in Portfolio Company myKaarma

BOSTON, Jan. 14, 2026 /PRNewswire/ -- 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 the board of directors of myKaarma.

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. "We believe Warburg Pincus is a great addition as a long-term partner to support the company's continued innovation and expansion, given their 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.

myKaarma was advised by Houlihan Lokey and TD Securities. RBC Capital Markets served as financial advisor to Warburg Pincus.

About myKaarma

myKaarma is a leading provider of cloud-based software solutions that transform the after-sales service experience at automotive dealerships. Its integrated platform includes communications, appointment scheduling, payments, video inspections, and analytics tools used by thousands of dealers to increase efficiency, customer satisfaction, and profitability. For more information, visit mykaarma.com.

About H.I.G. Growth Partners

H.I.G. Growth Partners is the dedicated growth capital investment affiliate of H.I.G. Capital, a leading global alternative investment firm with $74 billion of capital under management.* H.I.G. Growth seeks to make both majority and minority investments in strong, growth-oriented businesses located throughout North America, Europe, and Latin America. H.I.G. Growth Partners considers investments across all industries but focuses on certain high-growth sectors where it has extensive in-house expertise, such as technology, healthcare, internet and media, consumer products, and technology-enabled financial and business services. H.I.G. Growth strives to work closely with its management teams to serve as an experienced resource, providing broad-based strategic, operational, recruiting, and financial management services from a vast in-house team and a substantial network of third-party relationships. For more information, please refer to the H.I.G. website at HIGgrowth.com.

*Based on total capital raised by H.I.G. Capital and its affiliates.

About Warburg Pincus

Warburg Pincus LLC is the pioneer of global growth investing. A private partnership since 1966, the firm has the flexibility and experience to focus on helping investors and management teams achieve enduring success across market cycles. Today, the firm has more than $100 billion in assets under management, and more than 215 companies in their active portfolio, diversified across stages, sectors, and geographies. Warburg Pincus has invested in more than 1,100 companies across its private equity, real estate, and capital solutions strategies.

Warburg Pincus' Capital Solutions team collaborates closely with the firm's 290+ investment professionals and approximately 75 value creation executives across Warburg Pincus' global industry verticals, critical to sourcing and underwriting differentiated, attractive investments. In addition to a long and successful track record of investing in capital solutions-like transactions historically, the Warburg Pincus Capital Solutions Founders Fund portfolio consists of investments including DriveCentric, Excelitas Technologies, MB2 Dental, MIAX, Nord Security, Service Compression, and United Trust Bank.

The firm is headquartered in New York with more than 15 offices globally. For more information, please visit warburgpincus.com or follow us on LinkedIn.

Contact:

Evan Karp
Managing Director
[email protected]

H.I.G. Growth Partners
800 Boylston St
Suite 910
Boston, MA 02199
P: 617.262.8455
higgrowth.com

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SOURCE H.I.G. Growth Partners