HSBC AM closes infra debt fund with $612m

HSBC Asset Management has announced the final close of the first vintage of its global infrastructure debt fund, with $612m (£492m) raised across the strategy.

The HSBC AM infrastructure debt team has now raised a total of $4.3bn in assets under management since 2018.

The global infrastructure debt fund focuses on the lower mid-market infrastructure debt segment, which is dominated by small club and bilateral transactions. It aims to offer investors senior positioning in the capital stack.

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The strategy has closed eight investments to date, three of which have been fully repaid, and has delivered returns at the top end of its target rate of return range of 10 to 12 per cent. HSBC AM said that this has been achieved through the creation of a portfolio of privately negotiated loans, primarily senior secured, across sectors with defensive characteristics in developed jurisdictions.

“Successfully delivering on this strategy has been made possible through a tight-knit team of professionals with direct hands-on experience in negotiating, structuring, and executing often bespoke transactions that can deliver value to our investors,” said Dimitrios Papatheodorou, head of high yield investments at HSBC AM.

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“Our approach benefits from a wide network of time-tested relations with equity sponsors and advisers around the world, that drives deal flow, resulting in a robust investment pipeline.

“The interest we have seen in the strategy represents a clear vote of confidence from investors in the fund’s performance and returns to date.

“This compelling strategy represents a notable and successful milestone in the growth of HSBC AM’s infrastructure debt offering.”

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