HSBC Asset Management has closed its second directly-managed secondaries fund, Private Equity Opportunities II, having reached total commitments of more than $1bn.
PE Opps II, which launched in August this year, will be managed by HSBC Alternatives’ private equity team and comprises a portfolio of 26 private equity funds and primary capital of $100m for new co-investments.
The fund closed in October and comes after the firm’s first secondaries fund, Private Equity Opportunities, raised $1.34bn in December 2020.
Joanna Munro, CEO of HSBC Alternatives, said that the closing of the second fund is “a clear signal” of how important alternatives are to investors.
Free Webinar: Cashing in – Examining Private Debt Investments into 2022
- In the current market, what areas within private debt should get the attention?
- How has technology reshaped investor relationship management?
- How has LP’s attitude towards private debt changed due to the pandemic and how can this change be accommodated by GPs?
She added: “This demonstrates our ability to offer clients access to institutional quality secondary and co-investment opportunities. These transactions help clients gain more efficient exposure to the value add of private equity, including through faster deployment speed and potentially lower fees.”
Private investment firm Ardian was a cornerstone investor in PE Opps II through its secondaries activity, with other investors including the clients of HSBC Private Banking and HSBC Asset Management’s institutional clients.
HSBC AM’s second Private Equity Opportunities fund invests in a global portfolio of secondary assets, primary blue-chip private equity funds and co-investments diversified by manager, geography, stage and vintage.
It is part of HSBC AM’s strategy to grow its alternatives business, following the reorganisation of its existing alternatives capabilities under a single business unit, HSBC Alternatives, earlier this year.
Since 2012, HSBC Alternatives has invested in excess of $4.3bn in secondary transactions, including the two Private Equity Opportunities funds.
As of 30 September 2021, HSBC Alternatives had $54bn of assets under management and advice, with $28.2bn across private market funds and mandates.
Source: Investment Week
Can’t stop reading? Read more
Sports’ Saturday: Top sports news in private equity
Sports' Saturday: Top sports news in private equity Justin Ishbia, founder of private equity firm...
J.C. Flowers to retain control as Jefferson Capital launches $1.1bn Nasdaq IPO bid
J.C. Flowers to retain control as Jefferson Capital launches $1.1bn Nasdaq IPO bid J.C. Flowers...
Apollo and Irth Capital eye Papa John’s in $1.7bn take-private bid
Apollo and Irth Capital eye Papa John’s in $1.7bn take-private bid Apollo Global Management and...