UK-based bank and financial services group HSBC Holdings is putting together a team to tap its relationships with mid-sized companies across the globe to expand its brokering, arranging and financing of private debt deals, according to a report by Bloomberg.
With the global private credit market now worth around $1.5tn, large financial institutions such as HSBC are aiming to leverage their existing relationships to build a presence in the space.
Last month, HSBC arranged financing totalling $300m, in partnership with private-credit specialists Chimera Investments LLC and Orchard Global Asset Management, for energy firm Prax Group, indicating the type deal the company’s new private credit team will focus on, according to Bloomberg.
Other major banks looking to up their private credit presence include JPMorgan Chase which recently set aside $10bn to compete with direct lenders, while Goldman Sachs, Morgan Stanley, Wells Fargo & Co and Société Générale SA have all entered into partnerships with private credit funds.
