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HSBC AM closes second private equity opportunities fund at over USD1bn

HSBC Asset Management has held the final closing of its second directly-managed secondaries fund, Private Equity Opportunities II (PE Opps II), which launched in August 2021.

HSBC Asset Management has held the final closing of its second directly-managed secondaries fund, Private Equity Opportunities II (PE Opps II), which launched in August 2021.

PE Opps II closed in October with total commitments of cUSD1 billion and follows the successful fundraising of USD1.34 bllion for the firm’s first secondaries fund, Private Equity Opportunities, in December 2020.

PE Opps II is comprised of a portfolio of 26 private equity funds and primary capital of USD100 million for new co-investments. The fund will invest in a global portfolio of secondary assets, primary blue chip private equity funds and co-investments diversified by manager, geography, stage and vintage with an attractive private equity risk/reward profile.

Ardian, a world leading private investment house, was a cornerstone investor in the fund, through its secondaries activity, with other investors including the clients of HSBC Private Banking and HSBC Asset Management’s institutional clients.

Joanna Munro, CEO HSBC Alternatives, says: “The strong closing of this second fund is a clear signal of how important alternatives are to investors. This demonstrates our ability to offer clients access to institutional quality secondary and co-investment opportunities. These transactions help clients gain more efficient exposure to the value add of private equity, including through faster deployment speed and potentially lower fees.”

The fund is part of HSBC AM’s strategy to grow its alternatives business, following the re-organisation of its existing alternatives capabilities under a single business unit, HSBC Alternatives, earlier this year.

PE Opps II will be managed by HSBC Alternatives’ Private Equity team, one of the largest global alternative investment advisers and managers of discretionary private equity programmes in the world. HSBC Alternatives has invested over USD4.3bn in secondary transactions since 2012, including the two Private Equity Opportunities funds.

In 2020, HSBC Asset Management set out its strategy to re-position the business as a core solutions and specialist emerging markets, Asia and alternatives focused asset manager, with client centricity, investment excellence and sustainable investing as key enablers. HSBC Alternatives has USD54 billion of assets under management and advice, with USD28.2 billion across private market funds and mandates, as of 30 September 2021.

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