RBC Global Asset Management Applauds Momentus Securities for Bridging Gap Between Impact-Driven Lenders and Institutional Capital

When RBC Global Asset Management was looking to expand its impact investments through community lenders, the firm turned to Momentus Securities.

That initiative, announced in September 2024, makes it easier to invest specifically in pools of government-guaranteed small-business loans made to small business owners operating in communities across the United States. And by investing in loans made by community lenders, those community lenders would then have more balance sheet liquidity to expand their work helping small businesses and bolstering our nation’s economy.

“Despite the important role they play, mission-driven lenders such as Community Development Financial Institutions (CDFIs), Community Development Corporations (CDCs), and community banks, have historically faced barriers to efficient integration into capital markets. Reasons for this include limited scale, high transaction costs, constrained resources, and an uncertain growth trajectory,” RBC wrote in its 2024 impact investing annual report (PDF), which was recently released. “However, by selling more of their loans, CDFIs can enhance capital efficiency — recycling and redeploying assets to reach more borrowers and strengthening their economic influence within local communities.”

By the end of 2024, the RBC/Momentus Securities initiative had already led to the purchase of 325 loans from nine different community lenders with a total value of $39.5 million. For investment managers like RBC Global Asset Management, Momentus Securities offers custom-built portfolios of small business loans that address investors’ bespoke interests across various social impact financial return parameters.

“As one of the few mission-driven investment banks and a Small Business Administration (SBA) loan pool assembler, Momentus Capital is uniquely positioned to enhance liquidity and deliver more favorable economics to loan originators focused on community development,” RBC wrote. “Their specialized expertise enables them to bridge the gap between impact-driven lenders and institutional capital, creating scalable solutions that support sustainable economic growth in communities.”

Learn more about RBC Global Asset Management’s impact investments, and how Momentus Securities is helping, in its annual report. And keep reading to learn more about the services that Momentus Securities provides for community lenders to help them access the capital markets and create more liquidity.

How Momentus Securities Connects Mission-Driven Lenders with Institutional Investors

Momentus Securities is a different kind of investment bank that exists to help mission-driven and community-focused lenders who drive the economy throughout the United States. Momentus Securities works to bring down the costs of accessing the capital markets, and also is able to create the scale that investors are seeking by aggregating portfolios of loans made by all lenders throughout the United States, including mission-driven lenders.

These strategies ideally make it easier for investors who have been seeking investment-grade opportunities that not only could make a market-rate return, but would also make a difference.

Momentus Securities works to remove the logjam that mission-driven lenders such as CDFIs, CDCs, community banks, and credit unions often run into. These lenders want to support more small businesses and community development efforts. Yet they can’t scale up unless they have more liquidity. And they can’t get more liquidity unless they access more debt or move loans off their balance sheets.

Momentus Securities helps create more liquidity by:

• Creating warehousing lines to finance loans in anticipation of securitization.
• Aggregating portfolios of loans across mission-driven lenders throughout the United States.
• Helping its clients raise debt capital via bond and note issuances, private placements, and structured credit transactions.
• Providing public and private placement services for municipal issuers, public agencies, private developers, nonprofit organizations, and other mission-driven borrowers.
• Providing secondary market liquidity for community-centric organizations focused on America’s communities.

This means that institutional investors will have the opportunity to invest in those products — and therefore support communities.

Momentus Securities also:

• Provides capital raising services to help its clients grow by leveraging an extensive network with impact-driven institutional investors and foundations.
• Offers credit rating advisory services in all ratings considerations, including first-time ratings, rating upgrade/defense, capital structure optimization, and debt capacity analysis.
• Provides liability management and capital advisory services to help clients optimize their capital structure and improve their financial strengths.