HSBC raises $1bn for UK direct lending

The asset manager secured significant commitments from institutional investors for its private debt strategy in its first year of operation.

HSBC has raised commitments of $1 billion for its direct lending strategy in its first year of operation, the firm has announced.

The direct lending strategy was set up by HSBC Asset Management in early 2021 with a UK focus and uses HSBC UK Bank’s origination capabilities. HSBC AM launched direct lending as part of its ambition to grow its alternative assets business, which now sits within the HSBC Alternatives business unit.

In its first year of operation, HSBC Alternatives made loans to 23 companies with investments diversified across a range of industries and locations within the UK, with more than two thirds of deployment into companies outside of London.

Maria Ryan, head of institutional sales for the UK, Scandinavia and the Middle East at HSBC AM, said: “As the UK economy recovers from the impacts of covid-19. mid-market M&A activity rebounded strongly, creating a highly favourable environment for loan deployment.

“We continue to believe that the case for investing in the UK is compelling, and we are not alone; the UK persistently accounts for the greatest proportion of European private equity and debt investment.”

HSBC AM recently expanded its alternatives division, creating an infrastructure equity team in March 2022.