HSBC AM Bolsters Private Credit Platform
HSBC Asset Management has launched the Global Transition Infrastructure Debt and European Senior Direct Lending strategies as part of the firm’s efforts to expand its capabilities in alternative assets.
The Global Transition Infrastructure Debt strategy, which has already received over $240 million in commitments, invests in senior and second lien debt, primarily targeting mid-market borrowers in investment-grade countries in Europe, North America, and Asia-Pacific.
With an estimated $275 trillion in infrastructure needed to achieve net-zero emissions by 2050, the strategy attempts to provide investors with the opportunity to finance assets that facilitate the shift to a sustainable economy, such as clean power, energy efficiency, and clean industry projects.
HSBC AM’s infrastructure debt team, which was launched in 2017 and has generated $4.1 billion in commitments to date, will source investment opportunities using HSBC Bank’s global origination platform, as well as external banks, advisors, and project sponsors.
The firm is also expanding its direct lending presence with the European Senior Direct Lending strategy, which is an extension of its current UK Direct Lending strategy introduced in 2020.
The new strategy, which increases the HSBC Direct Lending platform’s total commitments to $2.4 billion, focuses on senior secured loans to private equity-backed, mid-market companies in Europe, particularly those with EBITDA between €10 million ($11 million) and €35 million ($38.7 million). It has now completed its second close, with fundraising scheduled to continue until 2025, following the deployment of $1.4 billion throughout the platform thus far.
“The growth of our private credit platform plays an important role in our wider alternatives business,” said Scott McClurg, head of private credit, HSBC AM. “The launch of our two new strategies demonstrates our commitment to providing clients access to potentially compelling investment opportunities both within Europe and globally.”
HSBC Alternatives managed and advised on assets totaling $71.1 billion as of June 30.