Multitudes of ventures exist with the goal of making a positive impact on our world, and the more capital they have to build out their ideas, the sooner those changes become apparent. NYC-based Ethic wants to help investors build out their portfolios with these types of businesses in hopes to further the global transition to sustainable investing.
The company just secured $50 million to pursue its goal. Ethic operates an asset management platform that allows institutional investors to personalize their portfolios according to their ethical convictions. Its Series C round was led by Jordan Park Group and saw participation from UBS Next and Oak HC/FT.
Ethic’s tech works to simplify the entire spectrum of environmental, social and governance issues and help banks and other wealth managers determine their values, principles and point of view on sustainability. The platform enables clients to customize equity portfolios according to their sustainability, financial, charitable giving and tax management preferences.
By doing so, financial intermediaries can engage with the issues they’re implicitly supporting through their investments, according to the company. Ultimately, Ethic’s solution helps investors ensure their public market investments match up with their personal ethical decisions.
Backed by fresh capital of its own, Ethic will invest in expanding its solution.
The raise follows a period of growth for the company. Despite uncertain market conditions during the first half of this year, Ethic has surpassed $2 billion in assets and has grown its internal headcount by more than 70 percent since its Series B in 2021, according to the company.
Up next, Ethic is furthering this momentum and fueling future growth. It plans to expand its presence into new markets, build out its product portfolio and enhance its platform experience. As it does so, Ethic is actively hiring for a handful of roles across operations, engineering, sales and more.
“Our personalized approach, which allows people to create portfolios that reflect their own unique definitions of sustainability, has helped facilitate our rapid growth with intermediaries and their clients,” Doug Scott, co-founder and CEO of Ethic, said in a statement. “With this latest round of funding, closed this summer, we’re excited to continue delivering innovative solutions that bring us closer to our vision of a world in which all investing is sustainable investing.”
