HSBC Private Banking successfully closes first Vision Private Equity Fund at over USD250m
HSBC Private Banking has held the successful close of Vision Private Equity 2019 – the first in a new programme of annual Vision Funds providing private clients with access to primary, secondary and direct co-investments across multiple geographies, sectors and strategies.
With over USD250 million raised globally, the Fund has proved popular internationally with investors looking for diversified private equity solutions, as well as clients wishing to meet their annual asset allocation requirements in private equity through a single, well diversified and professionally constructed portfolio.
Henry Lee, Global Head of Managed Investment Solutions, HSBC Private Banking, says: ‘’The Vision Fund demonstrates the strength of our alternatives capability, and the value proposition of our universal banking model that allows us to lever the capabilities of the HSBC Group to deliver innovative solutions that meet the needs of our clients.”
Vision 2019 was designed by HSBC Private Banking in partnership with HSBC Global Asset Management (AMG) who have one of the largest global alternative specialist teams managing USD 11.4 billion1 across private market funds and mandates. The Fund will invest HSBC Private Banking clients’ capital alongside AMG institutional clients’ capital in primary, secondary and direct co-investment opportunities. This combination increases the opportunity set for the Fund and enhances diversification.
Steven Ward, Global Head of Alternative Products, HSBC Global Asset Management, says: “The launch of HSBC Vision Private Equity comes at a time when private markets are experiencing phenomenal growth. The scale of our capability and experience in identifying and sourcing the right opportunities through a highly selective investment process provides a powerful combination that, when combined with the wealth management capabilities of HSBC Private Banking, allows access to a diversified portfolio of carefully selected private equity managers that would be very difficult for others to replicate.”
Vision 2019 is the first in an annual programme of Vision funds that HSBC Private Banking will offer alongside its existing programme of single vintage private equity opportunities. It follows the successful close earlier this year of Vintage 2018 BPEA LP which received approximately USD300 million of investor commitments. Clients had the opportunity to invest in the Asian buyout market through a feeder vehicle to The Baring Private Equity Fund VII offered by Baring Private Equity Asia, one of Asia’s largest alternative investment managers. Working in partnership with AMG, HSBC Private Banking was the only global private bank offering access to this investment opportunity to suitable private clients.
Partnering with AMG’s alternatives team, HSBC Private Banking has been offering alternative investments for over 30 years, including hedge funds, private markets and real estate in Europe, UK, North America, Asia and MENA. AMG manages or has oversight of USD 36.6 billion of alternatives.2
“For many clients alternatives are an important part of a well-diversified, multi-asset core portfolio, in line with a client’s risk tolerances and preferences, and this is reflected in our Strategic Asset Allocation,” says Lee, “For suitable investors with a long-term investment horizon private equity can play a valuable role in portfolio diversification.”