Capitalism is often discussed as if it were a fixed system operating beyond our control. But wealth holders, investment managers, and financial advisors all influence what capitalism makes possible and rewards.
That idea sits at the heart of Uplifting Capital, an impact investing firm founded by Toussaint Bailey. In this Net Positive Conversation with Johnny Sandquist, Bailey explains how capital can create measurable benefits for investors, businesses, employees, communities, and the planet.
From a Client Need to an Investment Firm
The idea for Uplifting Capital emerged while Bailey was helping lead a multibillion-dollar RIA.
A successful entrepreneur wanted to invest directly in causes he valued, including sustainable food systems and regenerative agriculture. He wanted an approach capable of supporting both his financial objectives and personal mission.
Bailey found that no existing solution delivered the combination he needed, so he began building one.
Ultimately, Uplifting Capital was designed around three pillars: people, planet, and the economy. Those pillars encompass investable priorities such as healthcare, education, workforce development, affordable housing, small-business growth, renewable energy, and resilient food systems.
Bailey notes that the firm does not assume capitalism can solve every societal problem. Philanthropy, public policy, and community action remain essential. Instead, Uplifting Capital looks for areas where positive change and sound investment fundamentals can reinforce one another.
Understanding “Impact Alpha”
Bailey calls that intersection “impact alpha.”
Impact alpha is the firm’s lens for finding opportunities where a positive outcome for society may also contribute to an investment’s financial performance. Its investment process focuses on three potential drivers:
- Under-resourced problems that require additional capital
- Underserved markets with unmet demand
- Underutilized value-creation opportunities within businesses
Rather than measuring impact and financial performance on entirely separate tracks, the firm looks for a direct relationship between them. The goal is not simply to prove that returns and impact can coexist. It is to identify situations in which the impact itself helps create value.
Bailey illustrates the idea with the story of a private equity investment in a door manufacturer. The company faced a shortage of skilled labor that constrained production. Its private equity partner introduced a program to train formerly incarcerated individuals and refugees.
Production increased from approximately 18,000 doors per week to more than 30,000. The program expanded opportunity for workers while helping the company increase capacity and strengthen its financial performance.
The clear takeaway is that when a positive workforce initiative creates demonstrable business value, future owners have a financial reason to preserve and expand it. Impact becomes part of the company’s operating model rather than a temporary act of goodwill.
What This Means for Wealth Managers
For RIAs, impact investing must work within the realities of advisor and client relationships. Bailey says Uplifting Capital was built to be institutional, scalable, and personal. That means rigorous due diligence, an advisor-friendly fund structure, and reporting tailored to each client’s impact interests.
Watch the full conversation with Toussaint Bailey to learn how impact alpha can connect financial performance with meaningful progress and how RIAs can give clients a more direct role in what their wealth makes possible.