Momnt and Saluda Grade Announce Close of Inaugural Securitization

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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.”

Also Read: Top 7 Sustainable FinTech Trends for 2024 and Beyond

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.

TalkFintech Bureau
TalkFintech Bureauhttps://talkfintech.com
TalkFintech is focused on the latest financial sector technologies and tools- covering all tech used by banks, investors, insurance, and wealth management sectors- and also conversations on retail financial management tools.

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