You know the businesses. You can’t buy their shares

That is the disconnect at the heart of private equity: a business can be easy to recognise yet near impossible to access as an investment. Retail Zoo, the company behind Boost Juice and Betty’s Burgers, changed hands when Adamantem Capital (an Australian private equity firm) acquired Bain Capital’s controlling stake in the business, rather than through an IPO that investors could apply for through their broker. The opportunity was not hidden, simply the route to ownership was different.

This is where WAM Alternative Assets (ASX: WMA) comes in. Through our investments with specialist private equity managers, shareholders gain exposure to over 35 private businesses including Retail Zoo and Fantastic Furniture. Shareholders can buy WAM Alternative Assets rather than shares directly in each underlying company: one listed investment company on the ASX gives them exposure to a selected portfolio of well-known high-quality private businesses, alongside other alternative assets.

The door does not stay open

The real access story extends beyond the companies themselves, to the specialist funds that own them. Allegro Fund IV, which is held within WAM Alternative Assets portfolio, completed its fundraising in 2022, while Allegro announced Fantastic Furniture as its sixth investment in Fund IV in May 2026. The fund’s original fundraising window had therefore closed several years before the acquisition was announced, as is often the case with many private equity investments. Through our existing fund holdings, shareholders can gain exposure to these businesses without securing their own allocation to the underlying fund or making a multimillion-dollar fund commitment (the minimum investment for many of these funds is $10 million). Although the fundraising window has closed, WAM Alternative Assets offers investors an alternative route to gaining exposure through the ASX.

Beyond access, private equity offers the potential to generate attractive long-term investment returns through active ownership and business growth. With Fantastic Furniture, the investment thesis centres on an established value retailer, its national store and distribution network, and the opportunity to grow its online business. Allegro brings a transformation-focused approach that combines investment professionals with in-house operating partners. Our confidence in the deal draws on Allegro’s experience in revitalising retail businesses, including Best & Less, one of their best performing investments. We believe Allegro's operational expertise and experience position it well to support Fantastic Furniture's next phase of growth and unlock value for investors.

Importantly, before committing to a new manager, we undertake detailed due diligence. Our assessment covers the investment team, opportunity set, their approach to originating deals and portfolio management, stability of firm and alignment. We then monitor managers and formally review valuations, due-diligence concerns and material changes. This rigorous manager selection and ongoing oversight are central to WAM Alternative Assets' investment approach. A well-known business is not automatically a good investment, and a compelling growth plan still needs the right price, capital structure and team to execute it.

A broad opportunity set

The distinction between public and private markets is not simply about investing in different sectors. Both contain healthcare, industrial, consumer and financial-services businesses. Private equity adds access to individual companies and ownership situations that may not be available on an exchange: a family-owned business approaching succession, a division being carved out from a larger corporate group, or an established mid-sized company seeking growth capital for expansion. The additional breadth therefore comes from the range of businesses and where in the lifecycle they are, rather than an entirely separate set of industries.

The ownership model also shapes the investment opportunity. Private equity managers often take controlling stakes and work directly with management on initiatives such as strengthening the leadership team, improving systems or acquiring complementary businesses. This creates opportunities to invest in established businesses as they enter a new phase of growth. Examples include founder-led companies building the management teams needed to expand, or smaller operators being brought together to create a larger, more competitive business. The investment case centres on the potential to grow earnings, improve operations and increase the value of the business through additional capital and operational support.

This active approach to ownership underpins the return objectives of many private equity managers, which commonly target internal rates of return (IRRs) of approximately 20% or more per annum. While these are targets rather than guaranteed outcomes, they demonstrate the return-generating potential that private equity managers seek to deliver through business transformation, growth and successful exits. For WAM Alternative Assets shareholders, this provides exposure to an asset class that aims to deliver attractive long-term returns alongside the diversification benefits of alternative assets.

The next time you walk past a Boost Juice or Fantastic Furniture, there is more to consider than what is on sale. Behind the brand is a business, a management team and a plan for its next stage of growth. Through WAM Alternative Assets, investors have the opportunity to participate in the growth and development of familiar Australian businesses that would otherwise be difficult to access.

For more information, visit: WAM Alternative Assets.