Nominated for “Best Alternative Investments Platform” for 2021 Benzinga Global Fintech Awards! Vote for us →

< Back to blogs < Back to Glossary

Alpha

Alpha is the amount of return that is attributed to the active efforts of a manager, as opposed to market forces. In private equity, alpha refers to the returns generated (or the “value added”) by the fund manager’s skill. Alpha is return due to active management, while Beta relates to the returns from market exposure.

Related Terms -
Categories:

Comments are closed.