HSBC Private Banking has closed the latest in a series of private equity offerings through which it offers suitable high and ultra-high net worth clients access to alternative investments.
Clients had the opportunity to invest in the Asian buyout market, with a focus on mid- and large-cap buyouts and corporate partnering transactions, through a feeder vehicle to The Baring Private Equity Fund VII offered by Baring Private Equity Asia, one of Asia’s largest alternative investment managers.
Working in partnership with HSBC Global Asset Management (AMG), HSBC Private Banking was the only global private bank offering access to this investment opportunity to suitable private clients, with the vast majority of investors being institutional clients. AMG has one of the largest global alternative specialist teams managing USD 10.8 billion across private market funds.
Subscribers to the vehicle will have access to private equity investments across Asia that have delivered better annualised returns in the last 10 years compared to Asian public markets.
HSBC Private Banking has received approximately USD300 million of investor commitments from across markets internationally, notably in the US, the UK, Luxembourg, Switzerland, Hong Kong and Singapore.
Henry Lee, Global Head of Managed Investment Solutions, HSBC Private Banking, says: “In today’s volatile public markets, we think valuations are high and future stock returns may be lower than in the past 10 years. In this environment we see more clients looking to alternatives as a way to diversify portfolios, and for those sophisticated investors with a long-term investment horizon private equity can play a valuable role. In our view, investing in Asian private equity is attractive due to continued economic momentum in the region.”
HSBC Private Banking’s long-term Strategic Asset Allocation reflects the view that alternatives are an important part of a well-diversified, multi-asset core portfolio. Within this context, alternatives can be used to find uncorrelated returns, help weather volatility and help take advantage of mispricing, to achieve the highest potential for long term returns, in line with a client’s risk tolerances and preferences.
Partnering with AMG’s alternative specialists, HSBC Private Banking has been offering alternative investments for over 30 years, including hedge funds, private markets and real estate in Europe, UK, North America and Asia. AMG manages, or has oversight of, USD36.6 billion of alternatives.
