HSBC Private Banking Raises Over $500M in Asia for PE
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In half a year, HSBC Private Banking has already raised over $500 million from Asia clients into private market investments including its Vision Private Equity 2019 fund.
In addition to various other private equity and debt funds, Vision Private Equity 2019 (Vision 2019), the first of a new program, raised $250 million globally, of which more than half was sourced from clients in the region.
Vision 2019’s portfolio includes a blend of primary investments and «selectively sourced secondary investment and co-investments» designed in joint partnership with HSBC Alternative Investments Limited (HAIL), a unit of HSBC Global Asset Management.
The increased client adoption of alternatives within their strategic asset allocation is a response to volatile market conditions and the late cycle investment stage, according to Edward Moon, HSBC Private Banking’s regional head of alternative investments, Asia.
In addition to Vision 2019, the bank has also successfully received in Asia $142 million of investor commitment for a Baring Private Equity Asia VII fund and $230 million placement for a Blackstone PREP IX (PE real estate fund).
In recent years, the overall number of publicly listed companies on US stock exchanges has been declining, or conversely, more companies are choosing to stay private and for longer periods than ever before, Moon said.
Against this general backdrop, clients with the appropriate risk profiles and who have a long-term investment horizon are increasingly looking to investment opportunities within private markets (both equity and debt) as a way to diversify their portfolios,» he added
Questions & Answers
Q.What is the total amount raised by HSBC Private Banking in Asia for private market investments over the past six months?
What is the total amount raised by HSBC Private Banking in Asia for private market investments over the past six months?
HSBC Private Banking has raised over $500 million from Asian clients for private market investments in the last six months. This includes funds for Vision Private Equity 2019 and other private equity and debt funds.
Q.How much of the Vision Private Equity 2019 fund was raised from clients in Asia?
How much of the Vision Private Equity 2019 fund was raised from clients in Asia?
Vision Private Equity 2019 raised $250 million globally, and more than half of this amount was sourced from clients within the Asian region. It is the first of a new programme.
Q.What kind of investments are included in the Vision Private Equity 2019 portfolio?
What kind of investments are included in the Vision Private Equity 2019 portfolio?
The Vision Private Equity 2019 portfolio includes a mix of primary investments, along with carefully selected secondary investments and co-investments. These were designed in partnership with HAIL.
Q.Why are clients increasingly adopting alternative investments in their portfolios?
Why are clients increasingly adopting alternative investments in their portfolios?
Clients are increasing their use of alternative investments in response to current volatile market conditions and the late stage of the investment cycle. This allows them to diversify their portfolios.
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