Private Markets: We take a high conviction approach to private markets investing, which encompasses private equity, private credit, impact and infrastructure. The depth and breadth of our relationships allows us to provide clients with access to ‘best-in-class’ managers and exclusive opportunities that we believe will deliver returns that reward an illiquidity premium. We offer customised solutions for our clients, leveraging HSBC’s global network and our team’s strong industry relationships to identify and work with managers in locations around the world, with a particular focus on Asia. Impact is at the core of our offering.
Alternatives
We leverage HSBC’s global network to source, originate and develop a range of alternatives capabilities.
Capturing alternative investment opportunities
Our goal is to provide investors with a wide array of alternative solutions tailored to their needs. We offer a broad spectrum of investment opportunities from hedge funds and private equity, to private credit, real assets, venture capital and natural capital.
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As of 30 September 2023
Why alternatives?
Here is what investing in alternatives could mean for you:
Reduced volatility
Alternative investments can reduce the overall risk of a portfolio due to lower sensitivity to market movements.
Increased diversification
Diversification is important when building a resilient portfolio. Alternative investments play a crucial role in enhancing diversification due to their low correlations with traditional investments.
Different sources of return
Our diverse alternative investment capability range can provide access to different sources of return.
Why alternatives with HSBC Asset Management?
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Our solutions
Hedge Funds: A pioneering force in hedge fund investment solutions since 1989, we are one of the largest hedge fund investors globally. Our experienced team leverage their strong industry relationships and HSBC’s global network to connect clients with highly skilled managers running the best and most innovative strategies from across the world. We identify investment skill with our global, dynamic and repeatable research process.
Infrastructure Equity: Our philosophy recognises that not all infrastructure assets are the same. The strategy focuses on core infrastructure assets; that is, assets with lower volatility of cash flows. Our dedicated team of infrastructure specialists allocate capital using a robust investment process based on two assessed pillars, quality and value.
Real Estate: Our real estate team partner with clients to provide access to innovative opportunities that target their investment needs. We research, select and deliver landmark real estate opportunities in markets where we have direct local knowledge. Our philosophy is to bring clients as close to the assets as possible, leveraging our expertise, HSBC's global network and deep heritage in Asia.
Venture Capital: Our venture capital proposition connects clients with early stage, high quality investment opportunities from around the world. Our highly specialised team leverage HSBC’s global network to identify and invest in companies around the world which have the potential to rapidly become leaders across markets and sectors. We are committed to providing investors with exposure to innovative companies that can accelerate the transformation of their industries and markets, whether that’s through financial technology or technology addressing the challenges of climate change.
Capital Solutions Group Our Capital Solutions Group (CSG) allows investors to partner alongside HSBC Bank in its deal flow, at arm’s length, within a partnership structure. CSG strategies provide access to areas where HSBC has a distinct sourcing and underwriting advantage: leveraged, structured and corporate credit in EMEA and Asia, Trade Finance and leveraging HSBC presence across Private Equity, fundraise and Fund finance.
The CSG strategies allow institutional partners to leverage on the Bank’s credit origination and underwriting capabilities, via Fund, Partnership or Co-Investment Mandate, with independent asset selection governed by a robust arm’s length governance and additional features ensuring alignment of interests.
Insights
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Senior UK Direct Lending Strategy
HSBC AM Launches Second Vintage of its Senior UK Direct Lending Strategy -
HSBC Alternatives Insights
The role of alternatives in a new investment playbook
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Opportunities in the Global Energy Transition
Contact us
Key Risks
Risk Considerations: There is no assurance that a portfolio will achieve its investment objective or will work under all market conditions. The value of investments may go down as well as up and you may not get back the amount originally invested. Portfolios may be subject to certain additional risks, which should be considered carefully along with their investment objectives and fees.
Illiquidity: An investment in alternatives is a long term illiquid investment. By their nature, the alternatives’ investments will not generally be exchange traded. These investments will be illiquid.
Long term horizon: Investors should expect to be locked-in for the full term of the investment
Economic conditions: The economic cycle and prevailing interest rates will impact the attractiveness of the underlying investments. Economic activity and sentiment also impacts the performance of underlying companies, and will have a direct bearing on the ability of companies to keep up with interest and principal repayments.
Valuation: These investments may have no or a limited liquid market, and other investments including those in respect of loans and securities of private companies, may be based on estimates which cannot be marked to market until sale. The valuation of the underlying investments is therefore inherently opaque.
Strategy Risk: Investments into alternatives may, among other risks, be negatively affected by adverse regulatory developments or reform, credit risk and counterparty risk. The credit market bears idiosyncratic risks such as borrower fraud, borrower bankruptcy, prepayment risk, security enforceability risk, subordination risk and lender liability risk.
Investor’s Capital At Risk: Investors may lose the entirety of invested capital
Important Information
(1) For Professional Clients only and should not be distributed to or relied upon by Retail Clients.
HSBC Asset Management is a group of companies in many countries and territories throughout the world that are engaged in investment advisory and fund management activities, which are ultimately owned by HSBC Holdings Plc. HSBC Asset Management is the brand name for the asset management business of the HSBC Group. The contents of this presentation have been compiled by HSBC Global Asset Management (Singapore) Limited, which forms part of HSBC Asset Management.
Expiry 31/10/24 SCIB 124
Investors in alternatives products should bear in mind that these products can be highly speculative and may not be suitable for all clients. Investors should ensure they understand the features of the products and fund strategies and the risks involved before deciding whether or not to invest in such products. Such investments are generally intended for investors who are willing to bear the risks associated with such investments, which can include: loss of all or a substantial portion of the investment, lack of liquidity in that there may be no secondary market for the fund and none may be expected to develop; volatility of returns; prohibitions and/or material restrictions on transferring interests in the fund; absence of information regarding valuations and pricing; delays in tax reporting; key man and adviser risk; limited or no transparency to underlying investments; limited or no regulatory oversight and less regulation and higher fees than mutual funds.
Please note that alternatives related investments are generally illiquid, long term investments that do not display the liquid or transparency characteristics often found in other investments (e.g. listed securities). It can take time for money to be invested and for investments to produce returns after initial losses. As such alternatives related investments should be considered as a very high risk investment and are only suitable as part of a diversified portfolio. Before making such investments, prospective investors should carefully consider the risks set forth in the relevant investment documents.
The contents of this document have not been reviewed by the Securities and Futures Commission of Hong Kong (“SFC”) or any regulatory authority in Hong Kong. You are advised to exercise caution in relation to any relevant offer. If you are in any doubt about the contents of the relevant investment documents you should consult your accountant, legal or professional adviser or financial adviser. The relevant product is not authorized under Section 104 of the Securities and Futures Ordinance of Hong Kong (“Ordinance”) by the SFC Accordingly, the distribution of any relevant Private Placement Memorandum, and the placement of interests or units in Hong Kong, is restricted. Any relevant Private Placement Memorandum may only be distributed, circulated or issued to persons who are professional investors under the Ordinance and any rules made under the Ordinance or as otherwise permitted by the Ordinance.
HSBC Asset Management is the brand name for the asset management business of HSBC Group. The above communication is distributed in Hong Kong by HSBC Global Asset Management (Hong Kong) Limited.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Global Asset Management (Hong Kong) Limited.
(2) Alternatives: There are additional risks associated with specific alternative investments within the portfolios; these investments may be less readily realisable than others and it may therefore be difficult to sell in a timely manner at a reasonable price or to obtain reliable information about their value; there may also be greater potential for significant price movements.