Alternative Investments: HSBC Consolidates Alternatives Units Into “HSBC Alternatives”
The new unit boasts of combined assets under management and advice of US$53 billion.
HSBC (NYSE: HSBC) has created HSBC Alternatives, an umbrella unit to house its disparate alternatives assets. It will be formed from multi-manager Hedge Fund and Private Market teams, as well as the firm’s Private Debt, Venture Capital, and direct Real Estate teams, with existing capabilities in the UK, France, Germany, Switzerland, Hong Kong, and the US. With 150 employees, the new business unit will house assets under management and advice of US$53 billion. (Institutional Asset Manager)
The step by the banking giant makes sense given its alternatives assets have doubled over the past four years. The bank chalked out a strategy in 2020 to reposition itself as a specialist asset manager for Asia, emerging markets, and alternative investments.
This new combined unit will be led by Joanna Munro, currently Global CIO. She is a member of the Management Committee of Nicolas Moreau, CEO, HSBC Asset Management.
“We have been very successful in delivering innovative capabilities to our institutional and wealth clients, with the recent success of our Infrastructure Debt teams, the rapid growth of our indirect private equity business, the launch of a direct lending investment capability with HSBC UK and the establishment of our Climatech venture capital team,” said Moreau. “With Joanna’s strong track record of building and transforming businesses, I am confident that we will take our alternatives business to the next level and accelerate this important growth opportunity.”
Xavier Baraton, currently Global CIO for Fixed Income, Private Debt & Alternatives, will take over from Munro as Global CIO.
Munro’s brief at the new business unit would be to broaden the range of alternatives available as investments to the firm’s wealth management and institutional clients.
These would include both direct and indirect alternatives including hedge funds, private markets, and real estate.
“I’m looking forward to leading the growth of HSBC Alternatives and bringing the benefits of alternatives asset classes to new and existing clients,” Munro said. “Alongside sustainable and impact strategies, such as Climatech, we will also look to grow our capabilities in Asia.”
Related Story: Alt Investments At HSBC Private Banking Running At Record
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