HSBC ALTERNATIVES RAISES USD1BN IN COMMITMENTS FOR ITS UK DIRECT LENDING STRATEGY
May 17 2022 – HSBC Asset Management’s (HSBC AM’s) UK-focused direct lending capability has attracted USD1bn in commitments from institutional investors in its first year.
The direct lending strategy was launched in early 2021 as part of the firm’s ambition to grow its alternatives capabilities, which now fall under a single business unit HSBC Alternatives. The direct lending capability has been developed in partnership with HSBC UK Bank plc, itself a leading originator of senior secured loans to mid-market private equity-backed companies in the UK.
The award winning proposition1 has been well received by the market, with 23 companies supported since launch. The investments to date are well diversified across industries and geographically spread across the UK. With more than two thirds of deployment into companies headquartered outside of London, it is complementary to the UK Government’s ‘Build Back Better’ agenda to invest in levelling up.
Maria Ryan, Head of Institutional Sales for the UK, Scandinavia and the Middle East, HSBC AM, said: “As the UK economy recovers from the impacts of COVID-19, mid-market M&A activity rebounded strongly creating a highly favourable environment for loan deployment. We continue to believe that the case for investing in the UK is compelling, and we are not alone; the UK persistently accounts for the greatest proportion of European private equity and debt investment 2.”
Since launching the direct lending strategy, HSBC AM has increased the size of the team from five to eight dedicated investment professionals. The team is led by Tom Green, Head of UK Direct Lending, HSBC AM.
HSBC Alternatives has a 228-strong team and combined assets under management and advice of USD49 billion3. It aims to provide investors with access to high quality and innovative investment opportunities that deliver strong risk-adjusted returns as well as positive impacts for both society and the planet. In March 2022 it expanded its alternative investments capability with a new Listed Infrastructure Equity Team and launched its first Global Listed Infrastructure Equity fund.
Media enquiries to:
Mat Barling
+ 44 (0) 738 479 4295
mathew.barling@hsbc.com
Ben Marquand
+ 44 (0) 7411633920
ben.marquand@hsbc.com
Notes to editors
[1] – Private Debt Investor Awards 2021: “Global Newcomer of the Year”
[2] – Deloitte Alternative Debt Tracker, Houlihan Lokey MidCapMonitor, Q4 2021, Prequin Pitchbook Annual European PE Breakdown
[3] – As at 31 March 2022
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