HSBC Expands Private Credit with Global Transition Infrastructure and European Lending Strategies – ESG News

• HSBC’s Global Transition Infrastructure Debt strategy garners over USD 240 million in client commitments.
• European Senior Direct Lending strategy extends HSBC AM’s direct lending platform across Europe.
• HSBC’s strategies align with the global shift toward sustainable infrastructure and net-zero goals.

HSBC Asset Management (HSBC AM) expands its private credit capabilities by launching the Global Transition Infrastructure Debt and European Senior Direct Lending strategies, further scaling its USD 6.5 billion global platform. These strategies reflect HSBC’s commitment to meeting institutional client demand in the growing private credit market.

Global Transition Infrastructure Debt Strategy HSBC’s Global Transition Infrastructure Debt strategy has already secured over USD 240 million in client commitments. This strategy invests in senior and second lien debt, targeting mid-market borrowers in Europe, North America, and APAC regions. Focused on financing infrastructure assets that support the net-zero transition, it targets sectors like clean power, energy efficiency, and clean industry.

As Scott McClurg, Head of Private Credit at HSBC AM, stated: “We believe in the vital role that substantial and sustained investment in infrastructure will play in the transition to net zero.”

With USD 275 trillion needed to achieve net zero by 2050, HSBC’s strategy offers clients both environmental impact and potential for solid returns.

European Senior Direct Lending Strategy HSBC also expands its direct lending footprint with the European Senior Direct Lending strategy, focusing on senior secured loans to mid-market European companies. This strategy will provide flexible capital solutions for acquisitions, refinancing, and growth, building on HSBC AM’s established success in the UK market.

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Investment Risks and Opportunities Investors should consider the risks involved in private credit, including credit risk, liquidity risk, and market volatility. HSBC AM applies rigorous risk management techniques to mitigate these challenges, ensuring that investors can navigate the complexities of the private credit landscape.

These two strategies showcase HSBC AM’s ambition to combine sustainable finance with private credit growth, leveraging their global network to deliver value to clients while supporting the transition to a low-carbon economy.