In half a year, HSBC Private Banking has already raised over $500 million from Asia clients into private market investments including its Vision Private Equity 2019 fund.
In addition to various other private equity and debt funds, Vision Private Equity 2019 (Vision 2019), the first of a new program, raised $250 million globally, of which more than half was sourced from clients in the region.
Vision 2019’s portfolio includes a blend of primary investments and «selectively sourced secondary investment and co-investments» designed in joint partnership with HSBC Alternative Investments Limited (HAIL), a unit of HSBC Global Asset Management.
The increased client adoption of alternatives within their strategic asset allocation is a response to volatile market conditions and the late cycle investment stage, according to Edward Moon, HSBC Private Banking’s regional head of alternative investments, Asia.
In addition to Vision 2019, the bank has also successfully received in Asia $142 million of investor commitment for a Baring Private Equity Asia VII fund and $230 million placement for a Blackstone PREP IX (PE real estate fund).
In recent years, the overall number of publicly listed companies on US stock exchanges has been declining, or conversely, more companies are choosing to stay private and for longer periods than ever before, Moon said.
Against this general backdrop, clients with the appropriate risk profiles and who have a long-term investment horizon are increasingly looking to investment opportunities within private markets (both equity and debt) as a way to diversify their portfolios,» he added