HSBC’s private banking arm closes debut PE fund at $250m

A man walks past a logo of HSBC outside a branch at the financial Central district in Hong Kong, China June 2, 2015. REUTERS/Bobby Yip/File Photo

London-headquartered HSBC’s private banking arm has closed its debut private equity vehicle Vision Private Equity Fund 2019, mopping up $250 million.

The fund will do primary and secondary deals besides direct co-investments across multiple geographies, sectors and strategies.

The fund, Vision 2019, has been designed by HSBC Private Banking in partnership with HSBC Global Asset Management (AMG), an alternative investor managing assets across private market funds and mandates.

Through Vision 2019, HSBC will invest its private banking clients’ capital alongside AMG institutional client commitments, it announced this week.

The vehicle, a first of the Vision funds that HSBC Private Banking has planned, will enable consumers to invest in diversified private equity solutions.

While the bank did not disclose how much of the fund will find its way to Asia Pacific, it has been known that Asia is among the key drivers for the bank’s private banking unit over the past few years.

Last year, HSBC had indicated its plans to increase its Asia private banking headcount by two-thirds in five years and double client assets in eight. The bank’s private banking market, according to a report, accounted for 75 per cent of group-level profit in 2017.

An email to the lender on Asia allocations did not elicit any response.

The latest Vision Fund 2019 from HSBC follows the close of Vintage 2018 BPEA LP earlier this year that received approximately $300 million of investor commitments. The fund enabled HSBC’s clients to invest in the Asian buyout market through a feeder vehicle to Private equity firm Baring PE Asia’s Fund VII.

The launch of HSBC Vision Private Equity comes at a time when private markets are experiencing phenomenal growth.

“For many clients alternatives are an important part of a well-diversified, multi-asset core portfolio, in line with a client’s risk tolerances and preferences, and this is reflected in our Strategic Asset Allocation,” said Henry Lee, Global Head of Managed Investment Solutions, HSBC Private Banking.

For suitable investors who have a long-term investment horizon, the private equity market can play a valuable role in portfolio diversification, he added.

Partnering with AMG’s alternatives team, HSBC Private Banking has been offering alternative investments for over 30 years, including hedge funds, private markets and real estate in Europe, UK, North America, Asia and MENA. Meanwhile, AMG manages or has oversight of $36.6 billion of alternatives.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.