HSBC Asset Management (HSBC AM) has rolled out a new ‘evergreen’ private equity fund targeting high-net-worth investors, joining a growing list of global managers expanding access to alternative investments to private individuals.
The vehicle, seeded with capital from HSBC’s insurance arm, will provide exposure to secondary deals and co-investments sourced from a wide range of GPs. It already spans more than 10,000 portfolio companies with a combined net asset value of $477m. HSBC AM is aiming to raise a further $500m from individual investors across the UK, Europe, Asia and the Middle East over the next year. Minimum investment levels start from $25,000, varying by jurisdiction.
The strategy builds on HSBC AM’s position as a major allocator to private markets, with $808bn in total assets under management as of June. Wealthy individuals currently allocate only a small share of their portfolios to alternatives, representing what the firm sees as a major growth opportunity.
Wall Street peers including Goldman Sachs, Morgan Stanley and BlackRock have all recently launched PE products for wealthy clients. Managers are increasingly targeting this segment as institutional allocations to private assets approach regulatory or practical limits, and as fundraising from pensions and insurers slows amid tight liquidity conditions.
The new HSBC vehicle will operate in an evergreen format, allowing investors to contribute or redeem capital periodically — a flexible structure that is gaining traction with Europe’s private wealth market.
