FUNDRAISING NEWS | September 26, 2024
HSBC Asset Management (AM) has launched its first fund supporting NAV-based financing to provide senior loans secured by private equity portfolios, the company said in a September 24 news release.
The strategy, HSBC NAV Financing Partnership Fund, will be managed by the company’s capital solutions team, with the majority of underlying loans expected to be investment grade. Borja Azpilicueta, head of the capital solutions unit, said the strategy will provide access to investment-grade private debt opportunities, diversifying traditional direct-lending exposures with shorter duration and potentially better risk-adjusted returns, for HSBC AM’s institutional and wealth clients.
“NAV finance is becoming a core part of the global private equity fund ecosystem as, in our view, fund managers and investors alike aim to continue building value in the context of longer asset hold periods,” Azpilicueta said.
HSBC AM’s alternative business has combined assets under management and advice of $71.1B as of June 30, with alternative credit consulting accounting for $6.6B of the total, the company said.
View the press release here.
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