WAM Alternative Assets Limited reported a robust half-year result with net profit surging 40% and declared a 3.0 cents per share interim dividend. The company expanded its private debt exposure and introduced a new treasury solution, underpinning its diversified alternative assets strategy.
- Net profit after tax up 40% to $6.47 million for H1 FY2026
- Interim dividend increased to 3.0 cents per share, partially franked at 60%
- Investment portfolio grew 4.9% over six months, 6.6% over 12 months
- Expanded private debt exposure via Longreach Direct Lending Fund
- New treasury solution with Fortlake Asset Management enhances cash returns
Strong Financial Performance
WAM Alternative Assets Limited (ASX: WMA) has delivered a compelling half-year financial performance for the six months ending 31 December 2025. The company reported revenue of $11.13 million, marking a 32.6% increase compared to the prior corresponding period. Profit before tax rose 42.3% to $9.38 million, while net profit after tax climbed 40.0% to $6.47 million.
This growth reflects the underlying strength of WAM Alternative Assets’ diversified portfolio of alternative investments, which increased by 4.9% over the half-year and 6.6% over the trailing 12 months. Since Wilson Asset Management took over as investment manager in October 2020, the portfolio has delivered an impressive 9.0% annualised return.
Dividend and Shareholder Returns
In line with its commitment to shareholder returns, the Board declared an interim dividend of 3.0 cents per share, partially franked at 60%, payable on 29 April 2026. This follows a fully franked final dividend of 3.0 cents per share paid during the period. Including franking credits, shareholders have received 31.3 cents per share in dividends since Wilson Asset Management’s appointment.
The company’s net tangible asset (NTA) backing per share was $1.18 before tax and $1.16 after tax as at 31 December 2025, showing steady growth despite dividend payments. Total shareholder return (TSR) for the half-year was 10.8% including franking credits, supported by both portfolio performance and a narrowing discount of the share price to NTA.
Portfolio Developments and Strategic Investments
WAM Alternative Assets continued to diversify and strengthen its portfolio with several key investments. Notably, it increased exposure to private debt through a $10 million commitment to the Longreach Direct Lending Fund, deploying $5 million in July and another $5 million in October 2025. This fund focuses on fixed-rate, shorter-duration loans to quality Australian corporate borrowers, complementing the company’s existing private debt holdings.
The company also completed co-investments alongside Liverpool Partners in private equity and Wentworth Capital in real estate. The real estate co-investment includes a life sciences campus in North Ryde, Sydney, anchored by government tenants such as CSIRO, offering both defensive income and development upside.
Additionally, WAM Alternative Assets implemented a new treasury solution managed by Fortlake Asset Management, investing $22.2 million in the Fortlake Real-Income Fund. This strategy targets conservative returns above the Reserve Bank of Australia’s cash rate, enhancing income generation from excess cash while maintaining liquidity.
Risk Management and Governance
The company outlined a comprehensive risk management framework addressing financial, strategic, operational, and compliance risks. Key risks include investment strategy execution, economic volatility, concentration, governance conflicts, cyber security, and liquidity management. The Board maintains a majority of independent directors to mitigate conflicts related to the investment manager, Wilson Asset Management, which is partly owned by director Geoff Wilson AO.
Liquidity remains a focus, with uncalled capital commitments of $36.4 million balanced against cash and liquid assets. The investment manager actively monitors capital calls and distributions to manage timing mismatches and preserve financial flexibility.
Outlook
WAM Alternative Assets’ half-year results underscore the resilience and growth potential of alternative asset strategies in delivering absolute returns and diversification benefits. The company’s ongoing capital deployment into private debt and co-investments, coupled with prudent cash management, positions it well to navigate evolving market conditions and sustain dividend payments.
Bottom Line?
WAM Alternative Assets’ strong half-year results and strategic portfolio moves set the stage for continued growth amid evolving market dynamics.
Questions in the middle?
- How will WAM Alternative Assets manage liquidity given the timing mismatch between uncalled capital and liquid assets?
- What impact could changes in economic conditions or inflation have on the valuation of unlisted alternative assets?
- Will the company maintain its dividend franking levels amid evolving tax and profit realisation dynamics?