Tech-enabled ESG-focused asset manager Ethic announced it raised $13 million as part of a Series A investment round, according to a company announcement. The multimillion-dollar investment was led by Nyca Partners, and included investments from Fidelity Investments and Ashton Kutcher’s Sound Ventures VC fund, among other investors.
Advisors who use Dynasty Financial Partner’s TAMP may already be familiar with the company, as the firm added Ethic to its technology stack earlier this month. The Series A funding will support increased expansion in the RIA and wealth management space by improved client service, strengthened business development and more robust engineering, according to Ethic.
Founded in 2015, the firm closed a $6.8 million funding round last October.
Environmental, social and governance investing has split the financial world, with advisors debating whether it’s still for “enthusiasts,” or a great way to reach next-generation clients. A deeper dive by WealthManagement.com found that some mutual fund managers have even tried using the hype around ESG funds to “repurpose” struggling mutual funds.
