HSBC Asset Management Launches Investment Capability
17 February 2021
HSBC ASSET MANAGEMENT LAUNCHES DIRECT LENDING INVESTMENT CAPABILITY IN PARTNERSHIP WITH HSBC UK
HSBC Asset Management has launched a UK-focused direct lending capability as part of the firm’s ambition to grow its alternative investments platform.
The new capability has been developed in partnership with HSBC UK Bank (HSBC UK), a leading originator of senior secured loans to middle market private equity-backed companies in the UK. The asset selection will be managed by HSBC Asset Management, whilst HSBC UK will supply the origination pipeline.
Working exclusively with HSBC UK, the partnership will focus on extending new senior secured loans - to borrowers with EBITDA of between GBP5m and GBP50m. It will target profitable, cash generative private equity backed mid-market companies with conservative leverage. Institutional investors will have unparalleled access to deal flow and accelerated deployment in a competitive segment of the market that has been underserved by debt funds1.
The partnership will allow HSBC to provide additional capital to mid-market companies and their private equity owners with larger senior secured loans, supporting businesses across the UK.
The capability will be led by Tom Green, Head of Investment for UK Mid-Market Credit, HSBC Asset Management. Tom will be supported by five mid-market credit investment professionals as well as the firms’ broader credit research capabilities and infrastructure.
Dominic Swan, Global CIO Private Debt & Real Assets, HSBC Asset Management said: “Private debt is a key area of focus for HSBC Asset Management. This partnership allows us to access all eligible loan opportunities originated by HSBC UK, and participate in those that best meet our clients’ needs. This innovative approach combines the skill and experience of HSBC Asset Management’s UK Mid-Market investment team, and the unparalleled market position of HSBC UK.”
Maria Ryan, Head of Institutional Sales for the UK, Scandinavia and the Middle East, HSBC Asset Management added: “Private debt is one of the fastest growing asset classes, particularly with UK Pension Funds and insurers seeking enhanced yield, stable cashflows and diversification. This capability provides access to private debt assets with an attractive yield premium that are traditionally hard to source.”
ends/more
Media enquiries to:
Monika Witkowska +44(0) 203 268 5479 monika.witkowska@hsbc.com
Notes to editors:
[1] Deloitte Alternative Lender Tracker Autumn 2019
For journalists only and should not be distributed to or relied upon by any other persons.
Approved by HSBC Global Asset Management and issued in the UK by HSBC Global Asset Management (UK) Limited, who are authorised and regulated by the Financial Conduct Authority.
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Note to investors:
The information contained in this press release does not constitute an offer or solicitation for, or advice that you should enter into, the purchase or sale of any security or fund. Any views expressed are subject to change at any time.
This document is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe to any investment
Any views expressed were held at the time of preparation and are subject to change without notice. While any forecast, projection or target where provided is indicative only and not guaranteed in any way. HSBC Global Asset Management (UK) Limited accepts no liability for any failure to meet such forecast, projection or target. The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets.
Approved by HSBC Global Asset Management and issued in the UK by HSBC Global Asset Management (UK) Limited, who are authorised and regulated by the Financial Conduct Authority.
HSBC Global Asset Management
HSBC Global 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 Global Asset Management connects HSBC’s clients with investment opportunities around the world through an international network of offices in 26 countries and territories, delivering global capabilities with local market insight. As at 30 September 2019, HSBC Global Asset Management managed assets totaling USD 512billion on behalf of its clients. For more information see www.global.assetmanagement.hsbc.com
HSBC Global Asset Management is the marketing name for the asset management businesses of HSBC Holdings plc.
HSBC UK
HSBC UK serves around 14.5 million customers across the UK, supported by 32,000 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates.
The HSBC Group
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 65 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of USD2,728 billion at 30 September 2019, HSBC is one of the world’s largest banking and financial services organisations.