The investment is set to mitigate educational gaps across the state and increase equity to fund disadvantaged schools.
New Brunswick, NJ (March 7, 2023) – New Jersey Community Capital (NJCC), the state’s largest community development financial institution (CDFI), announced today that it has selected black-owned Momentum Advisors to serve as its investment manager of $2.3 million of the $8 million Credit Enhancement Program grant awarded to NJCC in 2016 by the U.S. Department of Education. The grant funds are used to provide loan and lease guarantees to public charter schools to leverage private-sector loans or other capital that the public charter schools use for developing, expanding and improving facilities in disadvantaged districts in New Jersey.
NJCC, the leading charter school lender in New Jersey, has provided acquisition, predevelopment, construction, mini-permanent and permanent financing to 44 charter schools. These investments created or preserved more than 23,400 charter school seats—38% of all seats in the state—and represent a population where 75% of the students qualify for free or reduced-price lunch. Combined, NJCC’s charter school work has leveraged more than $430 million in investment to create or preserve more than 2,000,000 square feet of high quality educational space.
“One of NJCC’s core strategies is to finance high-quality education opportunities for underserved and under-resourced communities. We are thrilled to partner with Momentum Advisors, a Black-owned business, to help us pursue this goal,” said Bernel Hall, president and CEO of New Jersey Community Capital. “Investing a significant portion of the credit enhancement grant with a minority-owned money management firm allows NJCC to pursue bilateral equity in our work. Publicly, we continue to invest in critical education projects that generate new and better opportunities for New Jersey residents and their children, while behind the scenes we support organizations that actively decrease the racial wealth gap in the tri-state area.”
Momentum Advisors, an independent investment advisory and financial planning firm with over $330 million in assets under management, will invest the $2.3 million of grant funds in a conservative treasury portfolio in line with the Department of Education guidelines. The firm is a Securities and Exchange Commission (“SEC”) Registered Investment Advisor (RIA) and is a certified Minority Business Enterprise (MBE) based in New York City.
“We are honored to be selected by NJCC as its investment manager for the Reserve Fund,” said Allan Boomer, Momentum’s founder and chief investment officer. “Since our founding in 2012, we have provided investment and financial advisory services to the nonprofit community, emphasizing diverse organizations and entities that focus on the economic advancement of communities of color. We couldn’t be prouder of the organizations we serve.”
About New Jersey Community Capital
New Jersey Community Capital (NJCC) is a nonprofit community development financial institution (CDFI) that provides an innovative toolkit of financial products, programs and services to advance equity and opportunity in underserved communities. NJCC supports the preservation and development of affordable housing and sustainable community development ventures that increase jobs, improve education and strengthen neighborhoods to ensure communities can thrive. To learn more, visit https://www.newjerseycommunitycapital.org/ and Twitter: @NJCommCapital.
About Momentum Advisors
Momentum Advisors is an independent Investment Advisory and Financial Planning firm with over $330 million in assets under management. Founded by Allan Boomer in 2012, Momentum is a Securities and Exchange Commission (“SEC”) Registered Investment Advisor (“RIA”) and is a certified Minority-Owned Business Enterprise (MBE). The firm is geared toward individuals, institutions, and nonprofit organizations that have succeeded in accumulating capital for the preservation of their goals. Momentum is headquartered in New York City but has an international client roster that spans the globe.