Impact as the new alpha: Redefining performance and legacy for families

IN THE world of investing, “alpha” is the holy grail, a measure of performance that goes beyond the expected. It separates skill from luck, strategy from momentum. Alpha is the outperformance that proves you are doing something right.

But what if we have been measuring the wrong kind of alpha? What if, instead of purely financial outperformance, we considered something more meaningful – and in many ways, more difficult to generate? What if philanthropic impact or the ability to improve lives, solve entrenched problems, and contribute to a healthier world, was the true measure of an investment’s excellence?

It is a provocative question, but one that is increasingly relevant in an era when capital must account for more than return on equity. As wealth becomes more concentrated, and social and environmental crises deepen, there is growing pressure – especially among the next generation of asset owners – to redefine what success looks like. This is a call not to abandon performance, but to expand its definition.