Momentus Capital launched the fund in 2022 to bring institutional capital to social enterprises that have struggled with access to traditional capital (see, “Collateralizing small business loans to bring institutional capital to local impact”). The Equitable Prosperity Fund is the inaugural fund for Momentus, the umbrella brand for the family of financial services companies that includes Capital Impact Partners and CDC Small Business Finance.
The fund “is a game changer,” says Momentus’ Ellis Carr. This is “a fund helping underestimated communities, led by a diverse team of investment professionals, that takes a far different approach than traditional venture capital or debt financing.” The Equitable Prosperity Fund provides non-dilutive growth capital to businesses that are increasing healthcare and healthy food access in underserved communities, with a focus on diverse and employee ownership.
The fund has built a portfolio of 10 businesses, which includes 4P Foods, a Virginia-based company that works with local farmers to make healthy food more accessible to underserved communities; and SameSky Health, a Los Angeles-based health services that merged with Tampa-based GroundGame Health earlier this month to close healthcare gaps in hard-to-reach communities.
Return on inclusion
Momentus Capital’s fund secured commitments from nearly two dozen financial institutions, corporations, health systems, high-net-worth individuals and charitable organizations. The fund’s group of LPs include the Kresge and Marguerite Casey foundations, Northwestern Mutual, Truist, U.S. Bancorp Impact Finance and Charles Schwab Bank.
“The Equitable Prosperity Fund is sorely needed capital that isn’t blind to the financial impacts of structural racism,” said Kresge’s Erika Brice, and “ensures that overlooked, but talented entrepreneurs receive investments that resonate with and center their communities.”
