HSBC to inject $4bn into private credit funds
HSBC is set to inject $4bn (£2.95bn) into its private credit funds as part of a further push by the bank into the sector.
HSBC told Reuters it will invest the cash into HSBC Asset Management’s alternative credit funds, with the aim of attracting further capital from external investors to build a $50bn credit fund over the next five years.
Read more: HSBC creates new corporate advisory & capital markets unit in private credit push
It comes after the bank launched a new Capital Markets and Advisory business last month to focus on debt financing and an increased push into private credit.
A number of banks have tried to get in on the $2tn global private credit market, with some banks like HSBC and Deutsche launching their own ventures, while others have announced partnerships with existing players in the market.
Read more: Institutional investors pivot towards private market strategies
HSBC Asset Management’s chief executive Nicholas Moreau told Reuters it’s “an arms race”, adding that having greater HSBC group backing for its private credit funds could help it attract external investment.
He added that the new funds will be invested globally, with an initial focus on direct lending in the UK and Asia.
Read more: HSBC looks to partner with private credit firm
HSBC has been contacted for further comment.
