13.06.2013
By Jamie Hartzell
February saw the launch of Ethex, a new online platform for positive investing.
Ethex is a not-for-profit organisation that aims to raise investment capital for businesses that deliver a positive benefit to society. It brings the best positive investments together into one website, www.ethex.org.uk. It allows the investor to browse, compare and choose the investment that best meets their needs, and then to invest directly.
Ethex aims to broaden the social investment market by making positive investing easy to understand and easy to do. It offers the chance for everyone to build up a portfolio of positive investments that is easy to track, manage and trade through Ethex.
Ethex has recently teamed up with Oxford based lawyers Blake Lapthorn to launch a corporate advisory service that supports social businesses all the way from first devising a suitable investment product to undertaking a share offer and subsequent management of the investors. The not-for-profit organisation is keen to work with the CDFA to bring equity investment into CDFIs, in particular where that investment is eligible for CITR. So far CDFIs have raised very little in equity finance, even though equity is essential for a strong balance sheet now that grant funding is drying up.
Ethex is already working with CDFA member Parity Trust, who is looking to raise £200,000 in equity this autumn. Ethex is advising them on structuring and testing the offer, pulling together the offer documentation and then promoting the offer through the Ethex website. Investment will also be supported by a high net worth investor circle that Ethex is developing.
SJ Davis, Business Development Executive of Parity Trust, commented, “We are excited about the opportunity to work with Ethex for our new Community Share initiative. Cdfi’s are special in their ability to offer both social and financial returns to the investor, and we see huge potential for both organisations to work together to reach the growing social investment market.”
If the offer is a success, Ethex want to go on to support further CDFIs in raising equity finance.