Ethic raises $6.8 million in venture funding
Wednesday, October 24, 2018
New York, NY
Powering the sustainable investing future

Ethic, the ​tech-driven asset management platform that powers sustainable solutions for wealth advisors and institutional investors​, today announced it has secured $6.8 Million in venture funding. Venture investors include both institutional finance and impact leaders including ThirdStream Partners, Nyca Partners, Kapor Capital and the Urban Innovation Fund.

As client demand for sustainable investment strategies continues to rapidly increase, Ethic is the end-to-end technology solution that allows wealth advisors and institutional investors to create custom, optimized, tax-efficient sustainable equity portfolios. Ethic’s platform automates the creation of portfolios designed to outperform in sustainability, while seeking to tightly track benchmark performance.

"We're very excited about the unique approach Ethic has developed, focusing on empowering wealth advisors to offer their clients a differentiated approach to both sustainable investments and tax-efficient index exposure,” said Blake Grossman, Managing Partner at ThirdStream Partners and former Vice Chairman of BlackRock and former CEO of Barclays Global Investors (iShares). “We believe that by powering investors to become sustainability experts, they can accelerate the adoption of sustainable index investments among both advisors and institutional investors."

Founded in late 2015 by Johny Mair, Doug Scott and Jay Lipman, Ethic seeks to accelerate the transition to a sustainable investing future by bringing together two traditionally separate communities: sustainability and institutional quantitative finance. The genesis of the company was centered in the Co-Founders’ determination to empower the brightest minds in technology and institutional finance to help address the defining issues of our time. In recognition of Ethic’s commitment to social impact, the Co-Founders were included in ​Forbes​ magazine’s 30 Under 30 list in 2018.

“We think of ourselves as the operating system for sustainable equities investing, working alongside wealth advisors and institutional investors to empower them to become sustainability leaders” said Doug Scott, Ethic Co-Founder and CEO. “The spectrum of environmental, social and governance (ESG) issues is vast, the relationship between ESG and investment performance is complex, and, importantly, every client is unique. Sustainable investing cannot be a one-size-fits-all approach. Through the Ethic platform, we empower you to provide your clients immediate, insightful and custom sustainability portfolio solutions at scale.”

Ethic investor and recognized global advocate for sustainability, Justin Rockefeller, is excited about the positive impact that Ethic can have on the world. “Ethic’s founders had a keen insight realized through superior execution: technology can and should help people align their values and their investments. I’m proud to support such a talented and mission-driven team.”

Ethic is headquartered in New York City, and the team’s experience spans global investment firms, including Goldman Sachs, JPMorgan, Morgan Stanley and Deutsche Bank.