Debutant bank plots ‘social CLOs’

May 23, 2023 (New York)

A first-of-its-kind investment bank has launched with the goal of driving institutional capital to small businesses and non-profits in the US, positioning ‘social impact’ as a fully investable asset class for institutional investors. Momentus Securities – a New York-based registered broker-dealer and FINRA member – seeks to address the current scale and liquidity limitations in the mission-driven investing space that inhibit the deployment of institutional capital.

Indeed, the firm intends to facilitate the deployment of US$3bn of social capital by 2026 through issuing what it describes as ‘social CLOs’. Initially, it plans to open warehousing lines to aggregate portfolios of loans across five key segments – affordable housing, healthcare, education, small businesses and food. Once ramped up, the portfolios will be securitised and Momentus will distribute the bonds as a takeout.

The firm is led by president and ceo Alicia Reyes, who has 27 years of experience in investment banking and private equity, most recently as head of EMEA at Wells Fargo. Momentus offers services ranging from structuring and distribution on the public side to debt capital markets and advisory on the private side.

The launch of Momentus Securities is supported with grant funding to Capital Impact Partners from the FB Heron Foundation, Citi Foundation, the Robert Wood Johnson Foundation (RWJF) and MacKenzie Scott, as well as support from The Rockefeller Foundation through a sub-contracting relationship. Momentus Securities and Capital Impact Partners are part of the Momentus Capital-branded family of organisations.

Read more at Structured Credit investor.

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Momentus Securities is a FINRA-member broker/dealer that offers a range of financial products and services to support its mission of connecting mainstream capital sources and impactful investment opportunities.