Exclusive: Meghan and Harry-backed fintech Ethic raises $50 million
Summary
Ethic, the socially responsible investing startup backed by Prince Harry and Duchess of Sussex Meghan Markle, has raised $50 million in Series C funding, the company told Axios exclusively.Why it matters: The funding round shows continued inflows into value-based investing even in a market downturn, and it highlights the move toward personalization of portfolios.Background: Ethics assets under management grew 53% since October 2021 to $2 billion, the company says (the S&P 500 fell about 9% during that same stretch). Ethic creates personalized portfolios based on investors values, which may may include climate change, womens rights, and deforestation. It also helps users reduce their capital gains taxes a feature that has become an important draw during the recent market volatility, CEO Doug Scott said in an interview.Details: Jordan Park, an existing investor and client of Ethic, is leading the funding round. Though the company is not disclosing its exact valuation, Scott says that this is an up round.Context: Ethic is among few index personalization firms that remain independent after a string of acquisitions in the space. Last years consolidation wave included Franklin Resourcess acquisition of OShaughnessy Asset Management; Vanguard of JustInvest; BlackRock of Aperio; Morgan Stanley of Parametric Portfolio.