HSBC Asset Management’s (HSBC AM’s) UK-focused direct lending capability has attracted USD1bn in commitments from institutional investors in its first year.
The direct lending strategy was launched in early 2021 as part of the firm’s ambition to grow its alternatives capabilities, which now fall under a single business unit HSBC Alternatives. The direct lending capability has been developed in partnership with HSBC UK Bank plc, itself a leading originator of senior secured loans to mid-market private equity-backed companies in the UK.
The fund has supported 23 companies since launch. The investments to date are well diversified across industries and geographically spread across the UK. With more than two thirds of deployment into companies headquartered outside of London, it is complementary to the UK Government’s ‘Build Back Better’ agenda to invest in levelling up.
Since launching the direct lending strategy, HSBC AM has increased the size of the team from five to eight dedicated investment professionals. The team is led by Tom Green, Head of UK Direct Lending, HSBC AM.
