HSBC Asset Management closes second directly-managed secondaries fund, Private Equity Opportunities II, at over USD1 billion

HSBC Asset Management announces the final closing of its second directly-managed secondaries fund, Private Equity Opportunities II (PE Opps II), which launched in August 2021.

PE Opps II closed in October with total commitments of c. USD1 billion and follows the successful fundraising of USD1.34 billion for the firm’s first secondaries fund, Private Equity Opportunities, in December 2020. 

PE Opps II is comprised of a portfolio of 26 private equity funds and primary capital of USD100 million for new co-investments. The fund will invest in a global portfolio of secondary assets, primary blue chip private equity funds and co-investments diversified by manager, geography, stage and vintage with an attractive private equity risk/reward profile.

Ardian, a world leading private investment house, was a cornerstone investor in the fund, through its secondaries activity, with other investors including the clients of HSBC Private Banking and HSBC Asset Management’s institutional clients.

Joanna Munro, CEO HSBC Alternatives said: “The strong closing of this second fund is a clear signal of how important alternatives are to investors. This demonstrates our ability to offer clients access to institutional quality secondary and co-investment opportunities. These transactions help clients gain more efficient exposure to the value add of private equity, including through faster deployment speed and potentially lower fees.”

The fund is part of HSBC AM’s strategy to grow its alternatives business, following the re-organisation of its existing alternatives capabilities under a single business unit, HSBC Alternatives, earlier this year. 

PE Opps II will be managed by HSBC Alternatives’ Private Equity team, one of the largest global alternative investment advisers and managers of discretionary private equity programmes in the world. HSBC Alternatives has invested over USD4.3 billion in secondary transactions since 2012, including the two Private Equity Opportunities funds.

In 2020, HSBC Asset Management set out its strategy to re-position the business as a core solutions and specialist emerging markets, Asia and alternatives focused asset manager, with client centricity, investment excellence and sustainable investing as key enablers. HSBC Alternatives has USD54 billion of assets under management and advice, with USD28.2 billion across private market funds and mandates, as of 30 September 2021.

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HSBC Asset Management

HSBC Asset Management, the investment management business of the HSBC Group, invests on behalf of HSBC’s worldwide customer base of retail and private clients, intermediaries, corporates and institutions through both segregated accounts and pooled funds. HSBC Asset Management connects HSBC’s clients with investment opportunities around the world through an international network of offices in 25 countries and territories, delivering global capabilities with local market insight. As at 30 September 2021, HSBC Asset Management managed assets totaling USD619 billion on behalf of its clients. For more information, see  www.assetmanagement.hsbc.com/uk

HSBC Asset Management is the brand name for the asset management business of HSBC Group, which includes the investment activities provided through our local regulated entity, HSBC Asset Management (UK) Limited.

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HSBC Holdings plc 

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, the Middle East and North Africa. With assets of USD2,969 billion at 30 September 2021, HSBC is one of the world’s largest banking and financial services organisations.