HSBC closes secondaries fund on more than USD 1bn

Greg Gille
16 November 2021

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HSBC Asset Management has held a final close for its second directly managed secondaries fund, Private Equity Opportunities II (PE Opps II).

The fund was launched in August this year. It closed in October with total commitments of around USD 1bn. HSBC had previously raised USD 1.34bn for its first secondaries fund, Private Equity Opportunities, in December 2020.

PE Opps II will be managed by HSBC Alternatives' Private Equity team. HSBC Alternatives has invested more than USD 4.3bn in secondaries transactions since 2012, it said in a statement.

HSBC Asset Management said the fund is part of its strategy to grow its alternatives business, following the reorganisation of existing alternatives capabilities under a single business unit, HSBC Alternatives, earlier this year.

Fundraising for secondaries strategies has continued unabated in spite of the pandemic, Unquote Data shows: 24 funds targeting European secondaries investments were closed in 2020, with aggregate commitments of EUR 65.7bn, up from EUR 15.9bn in the previous year.

This momentum has continued in 2021, with EUR 28.9bn secured to date across just 15 funds. Highlights this year have included Coller International Partners VIII holding a final close on USD 9bn in January, and LGT Capital Partners' final close for its fifth private equity secondaries vehicle, Crown Global Secondaries V, on its hard-cap of USD 4.5bn.

Secondaries players are also increasingly looking to tap into the growing appetite for GP-led deals, with Pantheon recently holding a final close on USD 624m for Pantheon Secondary Opportunities Fund (PSOF), its first programme that will solely target GP-led secondaries.

Investors
Ardian is a cornerstone investor in the fund through its secondaries activity. Other investors include the clients of HSBC Private Banking and HSBC Asset Management's institutional clients.

Investments
PE Opps II is already invested across 26 private equity funds and has primary capital of USD 100m set up for new co-investments. The fund will invest in a global portfolio of secondary assets, primary private equity funds, and co-investments diversified by manager, geography, stage and vintage with an "attractive private equity risk/reward profile", the firm said in a statement.

People
HSBC Alternatives – Joanna Munro (CEO).