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Direct Lending

Access to loan origination opportunities

Alternative Credit

Alternative Solutions

Real Assets

What’s new

Who we are

Who we are

Direct lending has experienced significant growth since the wake of the financial crisis to become a key source of capital for leveraged loans, as many banks retrenched from the market due to increased regulation and more stringent capital requirements.

Direct lending provides compelling risk-adjusted returns, portfolio diversification benefits, and lower mark to market volatility when compared to the broader credit market.

Who we are

Partnership with HSBC bank

HSBC bank has a well-established proprietary origination platform across the UK and Europe

Full access to loan origination opportunities provides clients with accelerated deployment and enhanced credit selectivity

Distinct gap in the market

Most direct lending fundraising has been with stretched senior and unitranche-focused strategies, whilst the lower risk 'Senior' segment is comparatively underserved

We focus on the lower risk mid-market, which represents the original investment thesis of direct lending in Europe

Disciplined underwriting process

Investing at pace in lower risk loans with potentially attractive pricing

Focus on defensive, differentiated, and potentially high growth business models that we believe will be well positioned through the credit cycle




“HSBC Asset Management Alternatives brings decades of experience in alternatives investing to clients. Our platform combines global reach with local insights, helping clients access a world of opportunities. We're proud to offer alternative credit solutions making the most of the strengths of HSBC's network, opportunities in Asia based on our long heritage, and investment strategies that can help finance the transition to net zero.”

Tom Green, Head of Direct Lending, UK and Europe

Tom Green

What we do

Investment case studies

Leadership


Scott McClurg
Head of Private
Credit

Tom Green
Head of Direct Lending
UK & Europe

Barry Mackay
Head of New Investment

Steve Hewes
Head of Portfolio

Tom Boden
Investment Director

Will Giardini
Investment Director

Laura Repko
Investment Director

Contact us

If you are considering investing in direct lending, or want to learn more about our investment strategies, please get in touch.

Ready to talk?



 

Further information on the potential risks can be found in the Prospectus or Offering Memorandum.

Risk Considerations. There is no assurance that a portfoliowill achieve its investment objective or will work under all market conditions. The value of investments may go down as well as up and you may not get back the amount originally invested. Portfolios may be subject to certain additional risks, which should be considered carefully along with their investment objectives and fees. 

  • Illiquidity: An investment in the Fund is a long term illiquid investment. By their nature, the Fund’s investments will not generally be exchange traded. These investments will be illiquid.
  • Long term horizon: Investors should expect to be locked-in for the full term of the investment.
  • Economic conditions: The economic cycle and prevailing interest rates will impact the attractiveness of the underlying investments. Economic activity and sentiment also impacts the performance of underlying companies and will have a direct bearing on the ability of companies to keep up with interest and principal repayments.
  • Loans to private companies: The Fund will invest in loans to medium sized privately owned companies. There are specific risks associated with lending to such companies, including that they may have limited financial resources, access to capital and higher funding costs. They may also be more vulnerable to market, key-man and other risks and their accounts are not typically published.
  • Valuation: These investments may have no or a limited liquid market, and other investments including those in respect of loans and securities of private companies, may be based on estimates which cannot be marked to market until sale. The valuation of the underlying investments is therefore inherently opaque. 
  • Fund Risk: Investments into this Fund may, among other risks, be negatively affected by adverse regulatory developments or reform, credit risk and counterparty risk. The credit market bears idiosyncratic risks such as borrower fraud, borrower bankruptcy, prepayment risk, security enforceability risk, subordination risk and lender liability risk. 
  • Investor’s Capital At Risk: Investors may lose the entirety of invested capital.

This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment nor should it be regarded as investment research. This document has not been reviewed by The Monetary Authority of Singapore (the “MAS”).

HSBC Global Asset Management (Singapore) Limited (“AMSG”) has based this document on information obtained from sources it reasonably believes to be reliable. However, AMSG does not warrant, guarantee or represent, expressly or by implication, the accuracy, validity or completeness of such information. Any views and opinions expressed in this document are subject to change without notice. It does not have regard to the specific investment objectives, financial situation, or needs of any specific person. Investors and potential investors should not make any investment solely based on the information provided in this document and should read the offering documents (including the risk warnings), before investing. Investors should seek advice from an independent financial adviser. Investment involves risk. Past performance and any forecasts on the economy, stock or bond market, or economic trends are not indicative of future performance. The value of investments and income accruing to them, if any, may fall or rise and investor may not get back the original sum invested. Changes in rates of currency exchange may affect significantly the value of the investment.

This document is provided upon request for information only.

In Singapore, this document is issued by AMSG who is licensed by MAS to conduct Fund Management Regulated Activity in Singapore. AMSG is not licensed to carry out asset or fund management activities outside of Singapore.

HSBC Global Asset Management (Singapore) Limited

10 Marina Boulevard, Marina Bay Financial Centre, Tower 2, #48-01, Singapore 018983

Telephone: (65) 6658 2900 Facsimile: (65) 6225 4324

Website: https://www.assetmanagement.hsbc.com.sg/

Company Registration No. 198602036R