Our ‘Impact Alpha’ Strategy Found Us

We started with a question: Can doing good drive financial performance?

Over time, that question shaped how we invest. At Uplifting Capital, we invest in funds—backing managers with investment discipline, differentiated strategies, and alignment with our core thesis: That impact, when integrated into the business model, can drive long-term investment performance.

When we launched our first fund, our goal was clear: Back managers investing in companies that could deliver both strong returns and meaningful outcomes for people and the planet.

Like many others in the space, we believed those two goals could coexist. So we built a strategy to prove that alignment was not only possible—but investable. But as the portfolio took shape, and we began to study early performance, we saw something more.

A pattern worth paying attention to.

What we noticed

Certain investments stood out—not just financially, but in how they were operating, gaining traction, and resonating in the market. While there were many variables at play, one common thread kept showing up: Impact wasn’t just aligned with the business model—it was actively supporting performance.

In the most compelling cases, impact wasn’t a secondary benefit—it was integral to how the company grew and succeeded. What we were seeing wasn’t just interesting—it pointed to something bigger. A different way of understanding how value was being created.

From observation to strategy

It began as a pattern. Then it became a hypothesis: Could we intentionally look for fund strategies and underlying businesses where impact is a material driver of financial performance? The more we analyzed, the clearer it became: Impact wasn’t just present; it was driving value. This led to more than a shift in perspective. It led to an investment strategy.

We call it Impact Alpha. At its core, Impact Alpha is our focused approach to doing well by doing good—investing where positive impact actively drives business performance.

What it looks like in practice

We’ve seen this dynamic in action—underlying companies where impact and performance move together by design. Some examples include:

• Healthcare providers serving Medicaid or rural communities: Every new patient generates revenue—and expands access to care. No care, no business. The two are intertwined.
• Fintech platforms reaching underbanked populations: Serving overlooked customers drives both growth and inclusion. The business scales because the solution works for people who’ve been left out.
• Clean energy assets: Power only gets sold when turbines spin. Each kilowatt = revenue and emissions avoided.

These aren’t feel-good anecdotes. They’re business models built to perform—and built to matter.

How we’ve adapted our lens

As we developed this strategy, we began to focus more explicitly on three core signals:

• Impact-centered business models where value is created through the problem being solved
• Key operational levers that use impact to drive margin, retention, or productivity
• Deep alignment between mission and margin, embedded in the business design

While our strategy begins with nine clear investment themes, this simply delineates the universe in which we source opportunities. Our focus goes deeper. Within this universe we look for fund strategies—and underlying companies—where impact is built into how the business grows. Not companies “doing good” on the side. Companies doing well because they are doing good.

Why this matters now

There’s a lot of noise in the ESG and impact space. And while some of the skepticism is warranted, it misses a deeper truth.

Investors look for advantages in all kinds of places—valuation, structure, market timing. But there’s one signal that’s often undervalued: When a business creates value by solving real, meaningful problems. That kind of alignment—between business model and positive impact—can be a powerful source of durable performance.

And it’s often overlooked. This leaves gaps in solutions to pressing real world challenges and leaves potential investment returns on the table. This gap is where we focus. That’s what Impact Alpha is about.

Let’s keep the conversation going

Impact Alpha began as a point of view. It’s now the strategy that guides how we invest—grounded in conviction, shaped by experience, and increasingly supported by both impact and investment results. If you’re thinking about this too—as an investor, advisor, or founder—we’d love to hear from you.

August 2025.

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You can find earlier insights on the Uplifting Capital LinkedIn page. Follow along if you’re curious where this conversation started—and where it’s headed next.

Disclaimer: This article is intended for general informational purposes and does not constitute financial, investment, tax, or legal advice. The opinions expressed are solely those of the author and do not reflect the views of any affiliated entities. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal. Readers should consult with a qualified financial advisor before making any investment decisions. See further disclosures here.