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HSBC raises over US$250m for its first private equity 'Vision' fund, with almost half from Asia

HSBC Private Banking has closed its Vision Private Equity 2019 fund (Vision 2019), raising over US$250 million globally, with nearly half of the capital from clients in Asia.

It completes six months of private equity and debt funding during which HSBC clients in Asia have placed more than half a billion US dollars across a number of funds, said the private bank.

Vision 2019 is the first of a new programme of annual Vision funds, and HSBC said it has proven popular with clients looking for diversified private equity solutions, as well as those wishing to meet their annual asset allocation requirements in private equity through a single, well diversified and professionally constructed portfolio.

The increase in client adoption of alternatives within their strategic asset allocation is a response to volatile market conditions and the late cycle investment stage, said Edward Moon, regional head of alternative investments, Asia, HSBC Private Banking.

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"In recent years, the overall number of publicly listed companies on US stock exchanges has been declining, or conversely, more companies are choosing to stay private and for longer periods than ever before," he added.

The overall objective of HSBC Vision private equity funds is to deliver a mix of short and longer-term value, and that includes blended diversification and potential returns offered by high-quality funds.

Each portfolio is constructed from a set of core funds, along with a variety of thematic funds and direct co-investment plays.

Vision 2019 was co-created by HSBC Private Banking and HSBC Alternative Investments Limited (HAIL), a HSBC Global Asset Management unit which consists of an alternative specialist team with 46 investment professionals.

The Vision Fund will invest HSBC Private Banking clients’ money alongside HAIL’s institutional clients’ capital in primary, secondary and direct co-investment opportunities.