WAM’s Private Markets Strategy for Long-Term Growth and Dividends

Why It Matters

The structure democratizes access to high‑return private‑market assets, combining income and capital growth with daily tradability, which could reshape retail portfolio construction in a low‑yield environment.

Key Takeaways

• WHAM Alternative Assets targets broad private market exposure across sectors
• Private equity dominates portfolio, focusing on buyouts, growth equity, turnarounds
• Water entitlement investments provide income and capital appreciation, act as diversifier
• Private debt allocation remains modest, emphasizing manager skill and transparency
• LIC structure offers daily liquidity and franked dividends for illiquid assets

Summary

The interview with Nick Kelly, portfolio manager of WHAM Alternative Assets, outlines the fund’s private‑markets strategy delivered through a listed investment company (LIC) on the ASX, aimed at delivering long‑term growth and franked dividends for retail investors.

Kelly explains that the fund’s universe spans private equity, real estate, infrastructure, water, agriculture and private debt, with private equity representing the largest slice. Within equity the team targets buy‑out, growth‑equity and turnaround deals, leveraging 250‑hour due‑diligence processes to select specialist managers and occasionally co‑invest directly.

Concrete examples include an investment in Australia’s largest self‑managed super fund auditor, a portfolio of water‑entitlement assets in the Murray‑Darling basin that generate both lease income and price‑appreciation, and a modest 10% allocation to private credit where manager workout expertise is paramount. Kelly also walks through the J‑curve dynamic, noting a two‑to‑four‑year lag before value creation.

By packaging illiquid private‑market exposure in an LIC, WHAM offers daily liquidity, fully franked dividend yields and the ability to trade at discounts or premiums, giving retail investors access to asset classes traditionally reserved for institutions while preserving a diversified risk profile.

Original Description

Wilson Asset Management is a familiar name for many investors. Founded by Geoff Wilson in 1997, the firm now manages more than $6 billion on behalf of over 130,000 investors, with a strong track record in equities and income-focused LICs.

But in recent years, WAM has expanded beyond its small-cap roots into alternative assets—an area traditionally reserved for institutional investors.

Through WAM Alternative Assets (ASX: WMA), investors can access private equity, water rights, infrastructure and credit in a listed structure.

In this interview, portfolio manager Nick Kelly explains how he is positioning the portfolio across private markets and why he believes the LIC structure is well suited for investors seeking diversification, growth and income.

Summary Article: https://www.livewiremarkets.com/wires/wam-s-private-markets-strategy-for-long-term-growth-and-dividends

Time codes

0:00 - introduction

1:10 - Where WMA can invest across private markets

1:35 - A big allocation to private equity

5:01 - An explainer on investing in water rights

7:11 - Treading carefully in private credit

8:59 - Understanding returns from private markets

10:55 - Private markets in a listed investment company (LIC)