HSBC AM launches first $800 million direct lending fund

Alternative loans

The first closing of the alternative credit fund took place on October 31, 2017, the second on January 19, 2018 and the last on April 27, 2018.

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HSBC Global Asset Management has completed the final closing of its first HSBC Diversified Lending Fund dedicated to direct lending, according to a company statement.

The fund, according to HSBC AM, is part of “a fully managed alternative credit solution” and closed at $800 million. The fund will primarily invest in floating rate senior secured credit instruments, such as syndicated loans, as well as senior and unitranche secured loans to middle market companies.

HSBC Global Asset Management expects 300-400 underlying positions within the fund once it is fully invested in North America, Europe and Asia.

William Benjamin, Head of Alternative Investment Funds, HSBC Global Asset Management Limited, says demand has been strong among investors.

“The Fund has performed well in the short period since our first close. The first few months of 2018 were marked by heightened market volatility and challenging performance for equities and fixed rate asset classes, despite this we saw strong and resilient performance from our loan managers unionized,” he said.

“We also saw the first deployment of our direct loan officers, both showing healthy investment pipelines,” he added.

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