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HSBC Alternatives Raises USD1bn In Commitments For UK Direct Lending Strategy

HSBC Asset Management’s UK-focused direct lending capability has attracted $1bn in commitments from institutional investors in its first year, according to the firm.

The direct lending strategy was launched in early 2021 as part of HSBC Asset Management’s ambition to grow its alternatives capabilities, which now fall under a single business unit, HSBC Alternatives. The direct lending capability has been developed in partnership with HSBC UK Bank plc, itself n originator of senior secured loans to mid-market private equity-backed companies in the UK.

The proposition has supported 23 companies since launch. The investments to date are diversified across industries and geographically spread across the UK. With more than two thirds of deployment into companies headquartered outside of London, it is complementary to the UK Government’s ‘Build Back Better’ agenda to invest in levelling up.

Maria Ryan, Head of Institutional Sales for the UK, Scandinavia and the Middle East, HSBC AM, said: “As the UK economy recovers from the impacts of COVID-19, mid-market M&A activity rebounded strongly creating a highly favourable environment for loan deployment. We continue to believe that the case for investing in the UK is compelling, and we are not alone; the UK persistently accounts for the greatest proportion of European private equity and debt investment.”

Since launching the direct lending strategy, HSBC AM has increased the size of the team from five to eight dedicated investment professionals. The team is led by Tom Green, Head of UK Direct Lending, HSBC AM.

HSBC Alternatives has a 228-strong team and combined assets under management and advice of $49bn. 

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