HSBC Asset Management (HSBC AM) has launched the first vintage of its NAV Financing strategy, attracting a significant anchor commitment from HSBC Group.
The HSBC NAV Financing Partnership Fund will provide senior loans secured by private equity portfolios, supporting both fund managers and investors’ portfolios. The majority of the underlying loans are expected to be investment grade rated.
As part of the partnership with HSBC, the strategy will be managed by HSBC AM’s Capital Solutions team, providing independent origination, structuring and investment expertise, whilst leveraging on HSBC’s deep global origination and fund finance underwriting capabilities.
Borja Azpilicueta, Head of Capital Solutions at HSBC Asset Management says: “For our institutional and wealth clients, this strategy provides access to an investment grade private debt opportunity that diversifies traditional direct lending exposures, with shorter duration, potentially attractive risk-adjusted returns and an independent, external investment grade rating. By partnering with HSBC Bank, our strategy aims to provide investors with differentiated access to a scalable investment opportunity leveraging HSBC’s Sponsor network.
“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. NAV finance provides investors the flexibility needed to drive portfolio growth and value creation.”
The HSBC NAV Financing Partnership Fund is the second strategy managed by HSBC AM’s Capital Solutions team following the introduction of the first vintage of HSBC AM’s RCF partnership strategy in November 2023.
