ALM First closes first-ever $210M credit union loan fund, opens Fund II
What's the deal? ALM First Financial Advisors has closed the first loan fund approved under the National Credit Union AdministrationDealroom has a profile for this one. Try Dealroom →'s Investment Pilot Program. The ALM First Loan Fund I pooled $210 million from five credit unions to invest in consumer auto loans.
Why now? ALM First, which partners with more than 450 financial institutions nationwide, received NCUA approval before the program's April 2026 launch. The fund invests in consumer loans maturing under 10 years, with participating institutions capped at a 50% net worth investment.
What's the endgame? The firm says its structure fixes long-standing problems for credit unions: limited access to quality loan originators, inconsistent pricing, and steep operational barriers. The model offers shared underwriting costs, transparent pricing, and enhanced liquidity for sellers.
"The ALM First Loan Fund gave us something we've never had before: an opportunity to diversify our balance sheet in a way that wasn't available before," said Michael Hoang, capital markets director at Kinecta Federal Credit UnionDealroom has a profile for this one. Try Dealroom →.
What's next? ALM First has opened Fund II, focused on home equity loans. It reaches similar borrower profiles as unsecured credit but with recorded home equity behind every loan. Participation is limited to 30 federal credit unions.
"With homeowner equity near record highs, home equity loans offer some of the most attractive risk-adjusted yields available to credit unions right now," said Travis Goodman, principal at ALM First.
The signal: The pilot gives smaller credit unions pooled access to asset classes they struggled to reach alone — a template that could reshape how the sector diversifies its balance sheets.
Read more: cuinsight.com
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