HSBC Asset Management (HSBC AM) has launched a new venture capital investment strategy aimed at investing in companies that will participate in the transformation of financial services.
The strategy will provide clients with exposure to B2B companies which offer either software or financial services to enterprises or institutions. It will typically participate in series A and B funding rounds of companies with business activity in Europe and Asia. The strategy is aimed at institutions seeking to access innovative companies, including institutional asset allocators, family offices, private banks and ultra-high net worth individuals.
The strategy will be run by Remi Bourrette, Head of Venture & Growth Investments and Kara Byun, Director, Venture & Growth Investments, who both have operational financial service experience gained in Europe and Asia and have been investing together for a number of years. Kara joined HSBC AM in April 2020. Before that, she spent nine years with HSBC’s Global Banking & Markets division holding senior roles in London and Hong Kong.
Joanna Munro, CEO, HSBC Alternatives, says: “As part of our commitment to provide clients with exciting investment opportunities, this strategy will give them access to high growth sectors and parts of the world where economies are expanding fast such as the Greater Bay Area in China. The team’s sector experience and investment rigour, coupled with our profile as one of the world’s largest banking and financial services organisations, is a major advantage in the eyes of both investee companies and investors.”
Bourrette adds: “We are interested in the tectonic changes of the industry, even more so when they relate to the role of finance in the economy and society in general. We believe the transition to ESG-driven finance will lead to the reinvention of many product lines creating a powerful tailwind for sustainability-native companies. We also see wealth creation in Asia as an enduring trend that will benefit technology companies across wealth management, capital markets and insurance.”
Last month, HSBC AM announced that it was bringing together all of its existing alternatives capabilities under a single business unit, HSBC Alternatives, with a 150-strong team and combined assets under management and advice of USD53 billion. This is part of 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.
The launch of this strategy is part of the firm’s expansion in direct alternatives and follows the recent appointment of Christophe Defert and Michael D’Aurizio to form HSBC AM’s Climatech venture capital team.