HSBC AM Secures $1B Anchor for NAV Financing Strategy

HSBC Asset Management has completed the anchor fundraising round for its first Net Asset Value (NAV) Financing Partnership Strategy, raising $1 billion from a global group of institutional backers. The initial capital comes from insurance companies, pension funds and entities within the HSBC Group, with the strategy expected to remain open to additional investors through 2026 and into 2027.

The vehicle will invest in a diversified portfolio of senior secured loans tied to portfolio companies held by private equity funds across Europe and Asia. These facilities are backed by the NAV of the underlying private equity portfolios, are investment grade–rated, and are structured to follow Institutional Limited Partners Association disclosure standards.

Managed by HSBC AM’s capital solutions team, the strategy aims to deliver attractive risk-adjusted returns through conservative underwriting and secured financing structures. It also operates in partnership with HSBC Bank plc, which already plays an active role in the NAV financing market.

“Our strategy continues to attract sustained interest from well-established insurance and pension investors, as well as sophisticated family offices, seeking access to a performing and resilient asset class at this point in the cycle,” said Thorsten Michalik, CEO of HSBC Alternatives.

Borja Azpilicueta, head of capital solutions at HSBC AM, added that the focus is on financing mid-market, real-economy private equity portfolios and managers “at a time when this form of capital is key to anchoring their next phase of growth.”