Momnt, a leading fintech company specializing in real-time lending and payment solutions for businesses, and Saluda Grade, a synergistic and vertically integrated investment platform investing in emerging asset classes within the U.S. real estate sector, announced the closing of their inaugural securitization secured by home improvement loans, a 144A transaction rated by KBRA.
“Momnt is thrilled to close our first securitization. Partnering with Saluda Grade has been critical for Momnt to achieve this milestone and provides entry into capital markets, which allows us to continue to grow our business,” said Chris Bracken, Chief Revenue Officer at Momnt. “Momnt and Saluda Grade share the conviction that the U.S. homeowner will continue to invest in home improvement projects, and we hope this securitization is the first of many more to come backed by the home improvement loans originated on the Momnt platform.”
Headquartered in Atlanta, Momnt launched its platform in 2020 in the home improvement industry and has since become one of the preeminent market leaders in point-of-sale financing.
The securitization, totaling approximately $125 million and issued as MMNT 2023-1, consists of Class A, B, and C notes with ratings of A-, BBB-, and BB-, respectively, from Kroll Bond Rating Agency.
“Saluda Grade is pleased to facilitate Momnt’s inaugural securitization. This is a perfect example of the value Saluda Grade aims to deliver across our entire platform,” said Brad Hartung, Senior Portfolio Manager at Saluda Grade and Board Member at Momnt. “While this first transaction was a success, we believe we have only scratched the surface and look forward to working with Momnt to continue to drive the growth of their platform.”
The Saluda Grade ecosystem has been focused on its partnership with Momnt and on institutionalizing the home improvement loans asset class since 2021:
- Saluda Grade Ventures, the growth equity arm of Saluda Grade Holdings, initially led Momnt’s Series A financing round in June 2021 and the funds have subsequently supported Momnt’s growth through follow-on equity investments.
- Through its asset management business, Saluda Grade also purchased Momnt-originated loans to aggregate to this securitization—and ultimately help Momnt execute its vision of developing an ABS funding channel, diversifying Momnt capital markets outlets.
- This transaction brought 15 new institutional investors to the Momnt platform.
The issuance of MMNT 2023-1 is a landmark achievement for Momnt and Saluda Grade as both continue their success of broadening institutional support of the asset class via securitization and improving access to home renovation financing to the U.S. homeowner.
About Momnt
Momnt is a state-of-the-art financial services technology platform that revolutionizes how merchants offer financing. Through Momnt’s embedded lending solution, businesses can effortlessly provide customers with simple, fast, and affordable financing options, all delivered through a seamless process. Momnt drives growth for merchants, extends personalized financing to consumers, and generates new revenue sources for financial institutions. Visit momnt.com to learn more.
About Saluda Grade
Saluda Grade is a synergistic and vertically integrated advisory and asset management platform focused on investments in the alternative non-bank lending sector, real estate debt and equity, and hard assets sector. Headquartered in New York City, the Firm was founded in 2019. See www.saludagrade.com for additional information.
Disclaimer:
This press release is for informational purposes only and is neither an offer to sell nor the solicitation of an offer to any for any other securities, and shall not constitute an offer, solicitation or sale. Any offers will be made only by means of a private offering memorandum.
Forward-looking statements:
Statements in this press release have “forward-looking statements” and are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed in such forward-looking statements.
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