Harry & Meghan-backed fintech Ethic raises $50m

Ethic, an ESG investing fintech offering direct indexing to investment advisors, has raised $50m in a Series C funding round led by Jordan Park Group

Investment bank UBS through its venture arm, UBS Next, also took part as did existing investors including Oak HC/FT, Nyca Partners, Sound Ventures, Urban Innovation Fund and Kapor Capital.  

Targeting financial intermediaries such as advisors, Ethic last raised money in 2021. Shortly after it landed the Duke and Duchess of Sussex, more commonly known as Prince Harry and Meghan, as business advisors last year.

Ethic is available to advisors using the custody services of Fidelity, Charles Schwab / TD Ameritrade, U.S. Bank, Northern Trust, Morgan Stanley, or Pershing.

It offers custom direct indexing portfolios that aim to reflect clients’ values, financial goals, and tax preferences. It also offers impact reporting and educational materials.

“Our personalised 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,” said Doug Scott, co-founder and CEO of Ethic. 

“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,” Scott added.

Ethic says it has seen strong inflows in 2022 despite market turmoil, passing $2bn in assets and e