The Bank Slate


New fund to back minority- and women-owned banks

West Potomac Capital in Arlington, Va., plans to raise $250 million for a social impact fund that would invest in minority depository institutions (MDIs) and women-owned banks.

The WPC Financials Impact Fund I, set to launch in the second half of this year, would also invest in community development financial institutions (CDFIs) and low-income designated credit unions.

The fund will be led by Trevor Montano, West Potomac’s founder and managing member. He is a former chief investment officer at the Treasury Department.

West Potomac also plans to help corporations, financial institutions, philanthropic organizations and others place deposits with mission-driven financial institutions. It also plans to provide credit underwriting and monitoring services.

“We are extremely excited to bring these new and innovative impact investing products to market in support of mission-driven financial institutions across America,” Trevor Montano said in the release.

“It has been wonderful to see the significant increase in commitments related to social equity over the past few years,” he added. “We intend to work with great organizations …to help support and direct such commitments to highly impactful opportunities.”

O’Melveny & Myers is the lead private fund counsel and Nelson Mullins Riley & Scarborough is the fund’s financial institution regulatory counsel.

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