These two significant investment strategies included the Global Transition Infrastructure Debt strategy and the European Senior Direct Lending strategy, marking a key milestone for HSBC AM in expanding its private credit platform. Both will meet the growing demand for sustainable finance solutions and further solidify the position of HSBC AM within the private credit market.
These strategies are highly aligned with the global transition towards sustainable infrastructure and net-zero by 2050. HSBC AM currently manages a USD 6.5 billion global private credit platform and intends to leverage its specialist knowledge within this fast-evolving space to help clients meet their competitive return needs, while supporting them in environmental objectives around decarbonization and infrastructure resilience.
Global Transition Infrastructure Debt Strategy Secures Over USD 240 Million
The early entrant for HSBC in this market-the Global Transition Infrastructure Debt strategy-already attracted over USD 240 million of client commitments. The strategy will invest in a mix of both senior and second lien debt for mid-market borrowers across key regions including Europe, North America, and APAC. Because it targets sectors such as clean power, energy efficiency, and clean industry-highly relevant to financing assets critical to the net-zero transition-it enables investors to make a tangible impact on the green economy.
Scott McClurg, Head of Private Credit, HSBC AM, said infrastructure investment was key to reaching sustainability goals. He said, “We believe in the vital role that substantial and sustained investment in infrastructure will play in the transition to net zero.
In fact, attaining the ambitious global net-zero target by 2050 requires an estimated USD 275 trillion in building and changing infrastructure. From offering institutional clients a potential financially rewarding return with measurable environmental impact, HSBC’s Global Transition Infrastructure Debt strategy is positioning itself not only at the forefront of this enormous challenge but also offering a suite of leading strategies that can help meet this objective.
European Senior Direct Lending Strategy Expands Lending Platform Across Europe
Building on the success of its UK direct lending platform, HSBC AM has launched the European Senior Direct Lending strategy to offer access to senior secured loans across the mid-market corporate universe in Europe. The strategy will provide senior secured loans to a wide range of companies across Europe for use in acquisition and refinancing transactions, as well as to fund growth plans. It is yet more flexible than traditional forms of lending, often quicker ways for firms needing bespoke solutions to reach capital. Therefore, direct lending has been a key driver in corporate expansion and financial restructuring.
This new European-focused initiative takes its starting point from HSBC AM’s established track record in the UK market. This European Senior Direct Lending strategy should fill a very important financing gap for those medium-sized companies that do face challenges when considering capital access in fluctuating market conditions and economic uncertainties. With the flexible capital solution, HSBC AM positions itself as an important partner for companies navigating through complex financial landscapes.
Navigating the Risks of Private Credit
With private credit comes a great deal of opportunity, but there are indeed a plethora of risks associated with the market. Investors will have to grapple with challenges in credit risk, liquidity risk, and possible market volatility. Private credit, sometimes more insulated from the whims of public markets, can nonetheless prove quite the wild ride-closely tied to borrower performance and macro-economic shifts.
These are concerns that HSBC AM addresses through a robust risk management framework entailing in-depth credit analysis, careful selection of borrowers, and ongoing monitoring to mitigate potential risks. By maintaining such standards, HSBC AM better prepares its clients for both the challenges and the return possibilities of private credit.
A Dual Commitment: Sustainable Finance and Private Credit Growth
HSBC’s newest strategies underline the bank’s commitments to both sustainable finance and private credit expansion. With institutional investors increasingly focusing on ESG issues, HSBC AM’s new offerings give clients a way to align their portfolios with long-term sustainability goals while benefitting from the robust growth potential of private credit.
By harnessing together the two powerful market forces of sustainable infrastructure development and private credit growth, HSBC AM leverages its global network and expertise to deliver innovative solutions that benefit not just the clients but the broader economy.
The launch of the Global Transition Infrastructure Debt and European Senior Direct Lending strategies reflects HSBC’s broader ambition to be a leader in sustainable finance. As the world continues to move toward cleaner energy and more efficient industries, HSBC AM is well-positioned to support this transformation and provide investors with a pathway to deliver both financial returns and meaningful environmental impact.
As sustainable finance becomes increasingly critical in the world, the newest strategies at HSBC serve something of a blueprint as to how private credit can take center stage in shaping the future of global infrastructure. Guided by deep knowledge of the private credit market and sincere commitment to sustainability, the bank remains at the forefront of transition to ensure it serves investors and society as a whole.