HSBC Asset Management has partnered with HSBC UK to launch a new investment team and strategy for its alternatives arm.
The team will be led by Tom Green, head of investment for UK mid-market credit at HSBC Asset Management.
He will be supported by five mid-market credit investment professionals as well as the firms' broader credit research capabilities and infrastructure.
This innovative approach combines the skill and experience of HSBC Asset Management's UK mid-market investment team, and the unparalleled market position of HSBC UK."
The asset selection will be managed by HSBC Asset Management, while HSBC UK will supply the origination pipeline.
The partnership will focus on extending new senior secured loans to borrowers with income between £5m and £50m, targeting profitable, cash generative private equity backed mid-market companies with conservative leverage. Institutional investors will have access to deal flow and accelerated deployment.
HSBC said the partnership will provide additional capital to mid-market companies and their private equity owners with larger senior secured loans, supporting businesses across the UK.
"This partnership allows us to access all eligible loan opportunities originated by HSBC UK, and participate in those that best meet our clients' needs," said Dominic Swan, global CIO of private debt and real assets at HSBC Asset Management.
"This innovative approach combines the skill and experience of HSBC Asset Management's UK mid-market investment team, and the unparalleled market position of HSBC UK."
Maria Ryan, head of institutional sales for the UK, Scandinavia and the Middle East at HSBC Asset Management, said: "Private debt is one of the fastest growing asset classes, particularly with UK Pension Funds and insurers seeking enhanced yield, stable cashflows and diversification. This capability provides access to private debt assets with an attractive yield premium that are traditionally hard to source."
(First published by our sister title Investment Week)