HSBC AM Closes Third Secondaries Fund at $738M

HSBC Asset Management closed its third directly managed secondaries fund, Private Equity Opportunities III, which launched in December 2022, at about $738 million, bringing total commitments across its secondaries program to a combined $3.2 billion.

This is a decrease from the firm’s first fundraise, which hauled $1.34 billion in 2020, and its follow-up Fund II, which collected $1 billion in 2021.

Private Equity Opportunities III comprises a secondary portfolio of 11 private equity funds and primary capital of $100 million for new commitments to “blue chip private equity funds and co-investments.”

Private markets firm HarbourVest was a “cornerstone” investor in the fund through its secondaries activity, with other investors including HSBC Private Banking and HSBC AM’s institutional clients.

The Private Equity Opportunities program is part of HSBC AM’s ambition to grow its alternatives capabilities, which now fall under a single business unit, HSBC Alternatives.

HSBC Alternatives had $64.7 billion under management or advice at the end of March, with about $38.2 billion of that across private markets funds and mandates.

The announcement comes only a few weeks after HSBC AM raised more than $850 million for its second senior UK direct lending strategy. The fund makes senior secured loans to private equity-backed mid-market enterprises.