HSBC AM Expands Private Credit Offerings with Two New Strategies
2 SEPT, 2024
By Jose Luis Palmer from RankiaPro Europe
HSBC Asset Management (HSBC AM) has introduced two new strategies aimed at strengthening its position in the growing private credit sector. The Global Transition Infrastructure Debt and European Senior Direct Lending strategies are the latest additions, reflecting increased institutional interest in alternative investments.
New Private Credit Strategies Launched
HSBC AM’s launch of the Global Transition Infrastructure Debt and European Senior Direct Lending strategies signals the firm’s strategic focus on enhancing its alternatives business. The Global Transition Infrastructure Debt strategy is designed to provide investors with exposure to senior and second-lien debt, targeting mid-market borrowers in investment-grade countries across Europe, North America, and the Asia-Pacific region.
This strategy is focused on supporting infrastructure projects that facilitate the shift towards clean power, energy efficiency, and sustainable industries. HSBC AM’s infrastructure debt team, established in 2017, will leverage the global origination platform of HSBC Bank, along with external banks and project sponsors, to identify promising investment opportunities. With $240 million already committed as of mid-July, the strategy is off to a strong start.
Scott McClurg, head of private credit at HSBC AM, highlighted the strategy as a way for investors to participate in the global transition to a more sustainable economy, while potentially reaping attractive financial returns.
European Lending Strategy Builds on Previous Success
The European Senior Direct Lending strategy builds upon HSBC AM’s successful UK Direct Lending facility, which was launched in 2020. The new strategy focuses on senior secured loans to private equity-backed, middle-market companies in Europe, primarily those with EBITDA ranging between €10 million and €35 million.
This expansion brings HSBC AM's total commitments across its Direct Lending platform to $2.4 billion by the end of June.
According to McClurg, the new lending strategy aligns with growing institutional demand for high-quality, mid-market lending opportunities in Europe. He also stressed that HSBC AM’s private credit platform plays a critical role in the company’s broader alternatives business, which, as of June 2024, manages $71.1 billion in assets.
