Financial Performance and Due Diligence

Due Diligence

Our due diligence process

All investing involves inherent risks. Ethex has a strong track record and we’re committed to providing high quality offers with a fair risk/reward balance for our investors and are transparent with all information to give them a clear picture. That’s why we conduct rigorous due diligence in every organisation that seeks funding through our platform. We work hard to assess their financial health, social impact, and overall business model.

Our Investment Team, led by industry experts Paul Pizzala, Paul Linares, and Jeroen Huysinga, drives the majority of our due diligence process.

The process includes, but is not limited to, the following:

• Suitability and Screening: We assess the alignment of potential investees with our investment criteria, including their social impact, leadership team strength, and adherence to EDI standards.
• Platform marketability: We also assess each organisation's commercial viability and market fit for our platform before moving forward.
• Due Diligence: Our investment process spans up to six weeks and employs a framework to evaluate potential investments that covers capital adequacy, asset quality, management, earnings, liquidity, and security risk. While financial health is crucial, we also delve deep into each organisation's mission and values to ensure genuine social or environmental impact is in alignment with our investment goals.
• Investment Committee: A formal recommendation is made to a multi-disciplinary team including Ethex CEO Lisa Ashford, MBE and CFO Chris Butler, which analyses the consistency and comparability of the investment recommendation for approval before any offer goes live. This part of the process benefits from the Ethex culture of open, respectful and robust challenge and debate.

We hope this gives you an insight into the work we do to reduce any potential risk to our investors, and this work is being carried out alongside a review of the positive environmental and social impact that the organisations create. If you would like to read a more detailed outline of Ethex’s investment assessment process, you can view it here.

If you have any questions about Ethex’s past performance or due diligence screening, please contact help@ethex.org.uk and we will respond to your enquiry.