HSBC committed to its private credit investments after report on US$4 billion pause

[BRUSSELS] HSBC said on Friday (May 15) it remains committed to its private credit investments, denying an earlier Financial Times report that said the lender had paused a US$4 billion plan to invest in its own private credit funds.

The FT report came only over a week after Europe’s biggest lender took a US$400 million hit linked to the collapse of British mortgage lender Market Financial Solutions, adding to private credit market jitters.

“We are committed to our asset management’s offering in private credit funds,” an HSBC spokesperson told Reuters in an emailed statement.

The London-listed bank had announced the US$4 billion private credit investment plan in June 2025.

However, regulators worldwide have since become more concerned about banks’ exposure to the US$3.5 trillion private credit industry.

Wealthy investors have queued up to withdraw their money from private credit vehicles in recent months amid worries about weakening lending standards and concerns that artificial intelligence could severely disrupt the software industry, a sector where many funds have significant exposure.

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The FT report said that HSBC had not transferred any private credit funds until now and had no current plans to do so, citing two sources familiar with the decision-making process.

The report came after HSBC chairman Brendan Nelson told shareholders that the lender had “substantially completed” a review of its lending policies and practices following the US$400 million hit. REUTERS