HSBC AM Launches Fund for PE Firms to Borrow Against Assets
- Net-asset-value lending fund aims to raise up to €1 billion
- The fund is expected to make between 10 and 15 investments
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HSBC Holdings Plc’s asset management arm has launched a net-asset-value financing strategy, a fund that will help private equity firms borrow against their portfolios, its first such offering as part of an expansion of its alternative credit business.
The fund, which originates so-called NAV loans, is expected to raise as much as €1 billion ($1.1 billion), Borja Azpilicueta, the head of global capital solutions for HSBC Asset Management, said in an interview with Bloomberg News. HSBC AM is expecting the fund to make between 10 and 15 loans backed by private equity portfolios, the majority of which are set to be rated investment-grade.