HSBC Commits $4 Billion to Boost Private Credit Funds

Published 23 hours agoHSBC

HSBC Commits $4 Billion to Boost Private Credit Funds

HSBC has announced a substantial $4 billion investment into its private credit funds, a move aimed at strengthening its role in the fast-evolving $2 trillion private credit market. According to Reuters, the funds will be channeled through HSBC Asset Management's alternative credit funds with the aim of attracting external capital and reaching a $50 billion credit fund milestone within five years.

This strategic endeavor is part of CEO Georges Elhedery's broader plan to diversify HSBC's revenue streams as the bank faces challenges in maintaining profits from traditional lending. This pivot is seen as a response to the rapid growth of the private credit market, which industry insiders expect to swell to $3 trillion by 2028, notes a report by Brecorder.

HSBC Asset Management has been active in the private credit space since 2018, successfully executing $7 billion across 150 deals. With this new infusion, HSBC targets global investments with a priority on direct lending in the UK and Asia. This move aligns with a wider industry trend where financial institutions are increasingly investing in private credit to bolster earnings and add diversity to their revenue bases, as highlighted by Reuters.

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