All future Triodos Bank UK crowdfunding investment offers are to be hosted on the Ethex platform giving investors direct access to the broadest range of UK-based ethical and impactful crowdfunding investment opportunities all on one platform.
Ethex and Triodos Bank UK have been pioneers of direct impact investment for decades. This new partnership will combine strengths and investor communities, enabling more capital to flow to projects that deliver benefits for people and planet.
Ethex and Triodos Bank UK will remain independent in sourcing investment opportunities, focusing on complementary areas and sectors and the specialist Triodos Bank UK Corporate Finance team will continue to originate and structure new investment offers – as the bank has done for over 25 years – and these will be available to everyday investors via Ethex.
With a combined track record of over £330 million raised for over 300 impactful projects – including £246 million raised for 264 climate positive projects – this will be the UK’s most experienced, investor-focused, mission-aligned collaboration supporting scale in direct impact investment.
Registered users of Triodos Crowdfunding will be transferred to Ethex in September and Triodos will close its platform once this is complete. Investors will enjoy a single portfolio view and streamlined account management, with clear signposting of Triodos offers alongside Ethex’s own offers.
Mark Clayton, CEO at Triodos Bank UK, said: “Our mission has always been to make money work for positive change. In 2018 we become the first bank in the UK to launch its own crowdfunding platform to enable everyday investors to directly support organisations creating positive impact. By partnering with Ethex, we can now offer more investors even greater access to these high-impact opportunities. Working together we are uniquely placed to respond to the increasing scale and evolution of the direct impact investment market.”
Crowdfunding offers on the Ethex platform enable people to invest from £50 directly in shares or bonds issued by organisations delivering positive social and environmental impacts. Triodos and Ethex have experience structuring bond offers that are Innovative Finance ISA eligible, allowing investors to receive the interest they earn on these investments tax-free.
Recent offers on the Ethex platform include Bath and West Community Energy, one of the UK’s most established community energy groups, that raised over £750,000 with a 5.5% forecast return and Low Carbon Hub, who raised over £500,000 to fund the UK’s first community-owned battery in Oxfordshire and targeting returns of 5%. The first Triodos offers expect to be live in coming weeks.
Lisa Ashford, Director and co-CEO at Ethex said: “We believe that now more than ever we need to move with urgency to meet the demand for capital that we are seeing from impact-driven enterprises. Our partnership with Triodos Bank UK is about urgency and scale. We are joining forces to put more capital into the hands of changemakers while making ‘investing for good’ the standard for all.”
Ethex will undertake all investor registry management, payments, and online investor account management, providing comprehensive support for Triodos clients and investors.
The FCA-authorised platform provider ShareIn, a specialist in investment infrastructure for alternative finance brands, is used by Ethex to facilitate payments to and from investors and to assist with building and hosting. Triodos have also used ShareIn and so there will be underlying continuity in the system provider and data holder for investors.
Commenting on the partnership Stephen Muers, CEO of Better Society Capital, says: “There is more demand from investors for high-impact opportunities, and more organisations seeking that investment. By combining the track records and capabilities of Ethex and Triodos UK, this partnership will enable more capital to flow to where it is most needed.”
Important information
Investments offered on the Ethex platform are not readily realisable, which means that they may be difficult to sell and you may get back less than you originally invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and returns are not guaranteed. If you are in any doubt, you should contact an Independent Financial Adviser.
