BMO and City National Bank Invest in The 22's $42 Million Fund to Drive Clean Communities and Manufacturing Jobs of the Future

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Jul 22, 2025, 16:05 ET

The Banks Leverage the Power of the CRA to Build Clean Communities and the Manufacturing Jobs of the Future

LOS ANGELES, July 22, 2025 /PRNewswire/ -- The 22 Fund ("The 22"), a Los Angeles-based impact-focused, early-growth venture capital firm, today announced multi-million-dollar equity investments from BMO Bank N.A. (BMO) and City National Bank. BMO is investing $5 million and City National put $3 million into The 22's recently closed approximately $42 million fund—capital sourced through each bank's Community Reinvestment Act (CRA) initiatives.

"Helping to create economic opportunities is one way BMO lives its Purpose, to Boldly Grow the Good in business and life," said Carl Jenkins, Managing Director and Group Head, Community Capital Solutions at BMO. "Our investment in The 22 Fund aligns with our CRA strategy to close funding gaps, create good jobs, and empower communities to thrive."

"The 22 Fund's mission aligns with City National's CRA commitment of creating long-term economic opportunities," added Adey Tesfaye, Senior Vice President - Head of CRA at City National Bank. "We are excited to back a venture model focused on export-oriented businesses that delivers measurable community outcome." The CRA, a landmark piece of legislation enacted to address systemic disinvestment in low- and moderate-income (LMI) communities, has traditionally focused on affordable housing and community lending. However, The 22 Fund is pioneering a new pathway by channeling CRA-driven capital into venture investments that address climate change, create high-quality jobs, foster innovation, and promote inclusive economic development in underserved areas.

"The CRA is one of the most powerful tools we have for creating equitable economic outcomes in this country," said Tracy D. Gray, Founder and Managing Partner of The 22 Fund. "We're proud to be among a small but growing number of venture firms using CRA capital to support diverse founders and scale climate technology."

The 22 invests in innovative, U.S.-based manufacturing companies with strong export potential and scalable business models. The fund intentionally aims to generate both financial returns and tangible socioeconomic impact without compromise. Each of the fund's five current portfolio companies meets these inclusive criteria.

The 22 also welcomed Annie E. Casey Foundation, Sierra Club Foundation, Include Ventures and Heading for Change who joined as LPs in 2024. Each of these investors are leaders in impact and climate investing and leveraging their capital to build stronger communities.

The 22's model uniquely qualifies under CRA guidelines by directly supporting the creation of the clean quality jobs of the future and improvement in LMI areas. With its targeted approach to inclusive climate tech manufacturing, The 22 delivers impactful, scalable outcomes that align with the CRA's original intent.

About The 22 Fund
The 22 Fund is a holistic impact investor that funds tech-based, climate focused U.S. manufacturing companies to increase international sales (exports) and create the clean, quality jobs of the future in underserved and low- and moderate-income (LMI) communities. The 22 intentionally invests in women- and BIPOC-led firms to deliver both high ROI and high social/economic impact without concession or trade-offs. For more information, visit www.the22fund.com.

About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of April 30, 2025. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.

About City National Bank
City National Bank, a subsidiary of Royal Bank of Canada (RBC), is the largest bank headquartered in Los Angeles. Founded in 1954, City National is a regional bank specializing in Wealth Management and Private Banking, Entertainment & Sports Banking, Commercial Banking, and Consumer Banking, with branches and locations in Los Angeles, Orange County, San Diego, the San Francisco Bay Area, New York City, Nashville, Atlanta, Delaware, Las Vegas, Washington D.C. and Miami.* For more information about City National, visit the company's website at cnb.com.