HSBC Asset Management (HSBC AM) continues to scale up its USD6.5 billion global private credit platform, announcing the launch of the first vintage of its Global Transition Infrastructure Debt strategy and the extension of its UK direct lending capability into the European market.
The firm writes that the launch of the two strategies follows increasing institutional client interest within the fast-growing private credit market.
Global Transition Infrastructure Debt Strategy
The launch of HSBC AM’s Global Transition Infrastructure Debt strategy has attracted over USD240 million in client commitments to date.
The strategy invests in senior and second lien debt, targeting mid-market borrowers in investment grade countries in Europe, North America and the APAC region.
With an estimated USD275 trillion of spending on physical assets needed to reach net zero by 2050, HSBC AM’s Global Transition Infrastructure Debt strategy aims to provide investors with opportunities to finance infrastructure assets that facilitate the transition, such as clean power, energy efficiency and clean industry.
HSBC AM’s Infrastructure Debt team – which was established in 2017 and has raised USD4.1 billion in commitments to date – will also leverage HSBC Bank’s global origination platform, as well as external banks, advisers and project sponsors, to source investment opportunities.
European Senior Direct Lending Strategy
HSBC AM has also expanded its direct lending franchise with the launch of its European Senior Direct Lending strategy, taking the total commitments across the HSBC Direct Lending platform to USD2.4 billion. It has now completed its second close, with fundraising expected throughout 2025, following deployment of USD1.4 billion to date across the platform.
The European Senior Direct Lending strategy is an extension of HSBC AM’s UK Direct Lending strategy, which launched in 2020, and aims to provide investors with access to an extensive origination platform across Continental Europe and the UK through an exclusive partnership with HSBC Bank.
It invests in senior secured loans to private equity backed European middle market companies, with a focus on companies with an EBITDA between EUR10 – 35 million. The strategy recently supported the refinancing of Creditinfo, a leading service provider for credit information and risk management solutions worldwide.
Scott McClurg, Head of Private Credit, HSBC AM says: “The growth of our private credit platform plays an important role in our wider alternatives business. The launch of our two new strategies demonstrates our commitment to providing clients access to potentially compelling investment opportunities both within Europe and globally.
“The extension of our direct lending offering to Europe reflects the demand we are seeing from institutional investors for a high-quality, mid-market European direct lending strategy. Our offering captures the benefits of our partnership with HSBC Bank to leverage a strong pipeline of pan-European loan origination opportunities.
“We believe in the vital role that substantial and sustained investment in infrastructure will play in the transition to net zero. Our Global Transition Infrastructure Debt strategy provides clients with the opportunity to contribute to, and benefit from, the shift towards a more sustainable global economy while aiming to deliver compelling returns.”
