HSBC Asset Management has launched a new private equity strategy aimed at high-net-worth investors, expanding its alternatives platform beyond its traditional institutional client base, according to a report by Bloomberg.

The fund, seeded with capital from HSBC’s insurance arm, invests in secondary deals and co-investments sourced from a range of general partners. It already holds positions in around 10,000 companies with a net asset value of $477m. HSBC is seeking to raise $500m from wealthy clients in the UK, Europe, Asia, and the Middle East over the next year. Minimum commitments start at $25,000, varying by jurisdiction.

William Benjamin, head of alternative solutions at HSBC AM, said the vehicle would provide wealthy individuals with access to private equity investments previously out of reach, backed by rigorous valuation processes. “It’s not just about taking manager NAVs at face value. It’s important that the valuation is as accurate and robust as it can be,” he noted.

HSBC AM, which managed $808bn in total assets as of June, joins peers Goldman Sachs, Morgan Stanley, and BlackRock in rolling out private equity funds for affluent investors. The push comes as pension funds and insurers reach their private markets allocation limits, creating opportunities for managers to diversify their investor base.

Evergreen funds, which offer flexibility for clients to commit or withdraw capital periodically, are also gaining momentum across Europe as an alternative to traditional closed-end vehicles.

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