Private Markets: We take a high conviction approach to private markets investing, which encompasses private equity, private credit, impact and infrastructure. The depth and breadth of our relationships allows us to provide clients with access to exclusive opportunities. We offer customised solutions for our clients, leveraging HSBC’s global network and our team’s industry relationships to identify and work with managers in locations around the world, with a particular focus on Asia.
Alternatives
We leverage HSBC’s global network to source, originate and develop a range of alternatives capabilities.
Capturing alternative investment opportunities
Our goal is to provide investors with a wide array of alternative solutions tailored to their needs. We offer a broad spectrum of investment opportunities from hedge funds and private equity, to private credit, real assets, venture capital and natural capital.
As of March 2024
Opening up a world of opportunity in Alternatives
Focus on Alternatives
Here is what investing in alternatives could mean for you:
Reduced volatility
Alternative investments can reduce the overall risk of a portfolio due to lower sensitivity to market movements.
Increased diversification
Diversification is important when building a resilient portfolio. Alternative investments can play a role in enhancing diversification due to their low correlations with traditional investments.
Our diverse alternative investment capability range can provide access to different sources of return.
Alternatives with HSBC Asset Management
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Detailed information for article 8 and 9 sustainable investment products, as categorised under the Sustainable Finance Disclosure Regulation (SFDR), including; description of the environmental or social characteristics or the sustainable investment objective; methodologies used to assess, measure and monitor the environmental or social characteristics and the impact of the selected sustainable investments and; objectives and benchmark information, can be found at: HSBC Sustainable Investment Products
Article 8 SFDR: The product promotes environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.
Article 9 SFDR: the product has a sustainability objective.
Our solutions
Direct Lending: Our flagship direct lending offer is an exclusive partnership with HSBC UK Bank, a leading originator of senior secured loans to middle market private equity-backed companies in the UK. Our expert team provides institutional investors with comprehensive access to the Bank’s origination platform and propriety deal flow, identifying lower leveraged direct lending opportunities.
Infrastructure Debt: We provide clients with a long term and effective route to investing in the private infrastructure debt market globally, including Asia and Emerging Markets. Our experienced team leverages HSBC’s global network to connect clients with a full spectrum of opportunities across the infrastructure debt universe from investment grade to sub-investment grade.
Hedge Funds: We have been providing hedge fund investment solutions since 1989. Our experienced team leverages their industry relationships and HSBC’s global network to connect clients with managers running strategies from across the world. We identify investment skill with our global, dynamic and repeatable research process.
Infrastructure Equity: Our philosophy recognises that not all infrastructure assets are the same. The strategy focuses on core infrastructure assets; that is, assets with lower volatility of cash flows. Our dedicated team of infrastructure specialists allocate capital using a robust investment process based on two assessed pillars, quality and value.
Real Estate: At HSBC Asset Management, our real estate platform provides investors with access to a suite of listed, direct and indirect real estate investment strategies.
Venture Capital: Our venture capital proposition connects clients with early stage, investment opportunities from around the world. Our team leverages HSBC’s global network to identify and invest in companies which have the potential to become leaders across markets and sectors. We are committed to providing investors with exposure to companies that have the potential to impact their industries and markets, whether that’s through financial technology or climate technology.
Capital Solutions: Our capital solutions team allows investors to partner alongside HSBC Bank in its deal flow, at arm’s length, within a partnership structure. Our strategies provide access to leveraged, structured and corporate credit in EMEA. We leverage HSBC's presence across private equity, fundraise and fund finance.
Insights
More alternative investing insights
Opportunities in the Global Energy Transition
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Key Risks
Risk Considerations: There is no assurance that a portfolio will achieve its investment objective or will work under all market conditions. The value of investments may go down as well as up and you may not get back the amount originally invested. Portfolios may be subject to certain additional risks, which should be considered carefully along with their investment objectives and fees.
Illiquidity: An investment in alternatives is a long term illiquid investment. By their nature, the alternatives’ investments will not generally be exchange traded. These investments will be illiquid.
Long term horizon: Investors should expect to be locked-in for the full term of the investment
Economic conditions: The economic cycle and prevailing interest rates will impact the attractiveness of the underlying investments. Economic activity and sentiment also impacts the performance of underlying companies, and will have a direct bearing on the ability of companies to keep up with interest and principal repayments.
Valuation: These investments may have no or a limited liquid market, and other investments including those in respect of loans and securities of private companies, may be based on estimates which cannot be marked to market until sale. The valuation of the underlying investments is therefore inherently opaque.
Strategy Risk: Investments into alternatives may, among other risks, be negatively affected by adverse regulatory developments or reform, credit risk and counterparty risk. The credit market bears idiosyncratic risks such as borrower fraud, borrower bankruptcy, prepayment risk, security enforceability risk, subordination risk and lender liability risk.
Investor’s Capital At Risk: Investors may lose the entirety of invested capital.
Sustainability: means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.