BMO and City National Bank Support Innovative Ventures for Future Jobs
BMO and City National Bank Support New Ventures for Future Jobs
BMO Bank N.A. and City National Bank have recently announced significant investments in The 22 Fund, which focuses on promoting sustainable communities and advancing manufacturing jobs for the future. The 22 Fund, an early-growth venture capital firm, secured approximately $42 million in funding, with BMO contributing $5 million and City National backing with $3 million. These contributions are part of each bank's efforts under the Community Reinvestment Act (CRA).
These investments highlight a commitment to fostering economic opportunities in underserved areas. As Carl Jenkins, Managing Director at BMO, stated, "Helping to create economic opportunities is one way BMO lives its Purpose, to Boldly Grow the Good in business and life." This approach aligns with BMO's strategy to bridge funding gaps and strengthen community resilience.
City National's involvement also underscores the alignment of their CRA strategies with The 22 Fund's mission. Adey Tesfaye, Senior Vice President at City National, expressed enthusiasm about backing a venture model that prioritizes export-oriented businesses and drives measurable community outcomes. The Fund aims not only to generate financial success but also to foster innovation while addressing climate challenges in low- and moderate-income areas.
The CRA, established to combat systemic disinvestment, has primarily centered on affordable housing and community lending. However, The 22 Fund is redefining these parameters by channeling CRA-driven capital into ventures that offer substantial economic benefits—this includes creating high-quality jobs and promoting inclusive economic development.
Tracy D. Gray, the Founder of The 22 Fund, emphasized the significant role of CRA in fostering equitable economic outcomes: "The CRA is one of the most powerful tools we have for creating equitable economic outcomes in this country." The firm stands out as a pioneering force among a growing number of venture firms utilizing CRA capital to empower diverse founders and expand climate technologies.
Investing in innovative and scalable U.S.-based manufacturing companies is The 22 Fund's core strategy. The Fund is dedicated to ensuring that its investments produce not just solid financial returns but also profound social impacts. Currently, The 22 Fund supports five portfolio companies that meet specific inclusive criteria, emphasizing the necessity for sustainable and impactful business practices.
In addition to the contributions from BMO and City National, The 22 Fund has also welcomed prestigious institutions as limited partners, including the Annie E. Casey Foundation and the Sierra Club Foundation. The involvement of such organizations illustrates a broader commitment to climate and impact investing—bringing together resources to build strong communities.
With the goal of creating clean, quality jobs, The 22 Fund’s approach aligns with the original principles of the CRA, offering a targeted focus on inclusive climate tech manufacturing. This strategic positioning enables The 22 to deliver impactful, scalable outcomes that serve both economic and environmental goals.
About The 22 Fund
The 22 Fund is an innovative impact investor focused on tech-based and climate-centered U.S. manufacturing companies. By prioritizing international sales and clean job creation, The 22 aims to generate sustainable economic growth in low- and moderate-income communities. The Fund places particular importance on supporting women- and BIPOC-led firms to achieve high returns on investment alongside social and economic improvement.
About BMO Financial Group
BMO Financial Group stands as North America’s seventh largest bank by assets, having a total of $1.4 trillion in assets. With a legacy of serving customers for 200 years, BMO remains committed to providing a comprehensive range of banking, investment, and wealth management services across Canada and the United States. Fueled by a purpose of driving positive change, BMO is dedicated to contributing to a sustainable economy and inclusive society.
About City National Bank
City National Bank ranks as the largest bank headquartered in Los Angeles, and it is a subsidiary of the Royal Bank of Canada (RBC). Founded in 1954, it specializes in various banking sectors including Wealth Management, Commercial Banking, and Consumer Banking, holding a significant presence in major markets across the United States. City National’s commitment to quality service reflects its ongoing contributions to community and economic development.
Frequently Asked Questions
What is the main focus of The 22 Fund?
The 22 Fund primarily focuses on investing in tech-based, climate-oriented manufacturing companies aimed at creating quality jobs in underserved communities.
How much have BMO and City National Bank invested?
BMO has invested $5 million, and City National Bank has contributed $3 million to The 22 Fund, aligning their contributions with their Community Reinvestment Act strategies.
What is the Community Reinvestment Act (CRA)?
The CRA is legislation designed to encourage banks to help meet the credit needs of the communities they serve, particularly low- and moderate-income neighborhoods.
How does The 22 Fund measure its impact?
The 22 Fund assesses its impact not only by financial returns but also by the socio-economic benefits their investments generate within local communities.
Who are the partners involved with The 22 Fund?
The 22 Fund has partnered with various organizations, including the Annie E. Casey Foundation and the Sierra Club Foundation, which support its mission of driving community impact through investment.
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