Ethic raises $29 million to grow customized sustainable portfolios for wealth advisors

ImpactAlpha Editor

Dennis Price

ImpactAlpha, Mar. 31 – Ethic has raised $29 million to grow its customized sustainable portfolios for wealth advisors. The tech-driven asset management platform says it has grown assets under management ten-fold since its 2019 financing round, including to $760 million in sustainable direct indexing strategies. “It’s increasingly clear that the future of asset management is personalized,” said Dan Petrozzo of Oak HC/FT, which led the new financing.

Existing investors including Fidelity Investments, Nyca Partners, Sound Ventures, ThirdStream Partners, Urban Innovation Fund and Kapor Capital also participated. Ethic has a strategic agreement with Fidelity and has partnered with several large U.S. advisory firms.

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ImpactAlpha Editor

Dennis Price

October 25, 2021

The Brief

Featured: Investing in Health

How the pandemic is propelling innovators to bridge healthcare gaps in emerging markets. From Lombardy, Italy and Queens, New York to Jakarta, Indonesia and Delhi, India, the desperate scramble for oxygen has been a recurring feature of every coronavirus surge. Those scenes have spurred entrepreneurs in Ethiopia, Kenya, Nigeria and other African countries to set up local oxygen-supply businesses to support local hospitals and medical centers. The businesses are supported by Oxygen Hub, which leases oxygen concentration machinery, storage cylinders and delivery trucks to its franchises and provides upfront financing. The network also supplies operating procedures, training and customer acquisition support. The franchises pay Oxygen Hub a franchise fee and a percentage of their revenues. "We’re seizing the renewed attention to this crisis and building something that’ll last well beyond COVID,” Oxygen Hub’s Effeson Hailemichael tells ImpactAlpha.

Dealflow: Climate Finance

CDC Group invests $70 million in BP-backed climate fund for India. Momentum behind green infrastructure is growing in India, even though the country has yet to update its ‘nationally determined commitment’ less than a week before the COP26 climate summit in Glasgow. The Green Growth Equity Fund from EverSource Capital, a joint venture between Indian private equity firm Everstone and BP’s renewable energy group Lightsource BP, is targeting infrastructure investments that support India’s low-carbon transition and mitigate climate impacts. Target sectors include renewable energy, energy efficiency, e-mobility and waste and water management. CDC, the U.K.’s development finance institution, has pledged $1 billion in climate funding for India by 2026.

Agents of Impact: Follow the Talent

ImpactAlpha partner events: There’s still time to register for Wednesday’s Next Normal Now on regeneration from the Global Impact Investing Network. Join a breakout session on “Land: Strengthening land and cityscapes for healthy ecosystems and communities,” with Yusef Freeman of Jonathan Rose Companies, Clarmondial’s Tanja Haveeman, rePlant Capital’s Robyn O’Brien, and Arindom Datta of Rabobank. RSVP today… Tideline presents “An inside look at one allocator’s approach to impact fund diligence,” a case study of J.P. Morgan Private Bank’s Global Impact Fund, with J.P. Morgan’s Jessica Matthews and John Ancona, Elevar’s Amie Patel, Trill Impact’s Pia Irell, moderated by Tideline’s Ben Thornley, Wednesday, Nov. 3. Sign up.