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Capital Solutions

Opening HSBC Bank deal flow and balance sheet to investors

A Partnership Approach

We provide institutional investors access to proprietary private assets. Our partnership with HSBC Bank enables scalable deployment to meet strategic and allocation priorities.

Understanding capital solutions

Capital Solutions facilitates access to:

  • Curated sourcing opportunities for scalable deployment in multi-year programs
  • Independent and arms-length governance framework
  • Access to HSBC Bank's proprietary deal flow in Europe
  • HSBC Bank retaining skin-in-the-game

We have identified scale opportunities in private asset classes where HSBC has a differentiated origination track record.

RCF Financing

European leveraged private credit

RCF Financing is a diversifier to traditional private credit, unlocking access to large, diversified LBO credits.

What is an RCF?

  • Private credit market, providing senior secured loans to large European LBO corporates
  • RCFs are floating rate credit facilities traditionally provided by banks only
  • As a source of operational liquidity for corporates, RCFs have a resilient credit profile and can be drawn and repaid at the discretion of the company
  • RCFs benefit from short maturity and low sensitivity to base rate movements

NAV Financing

Investment Grade private credit

Senior loans secured by high quality, mature private equity portfolios, supporting both Fund Managers and Investors. NAV Financing addresses General Partner and Limited Partner financing needs.

What is NAV Finance?

  • Private credit asset class, providing senior loans collateralised by the value of mature Private Equity portfolios
  • Investment Grade underlying, validated by an external credit rating and benefiting from robust credit protection features
  • Senior floating rate credit instrument with shorter duration, downside protection and asset diversification
  • NAV finance provides flexibility to support growth and creates value across the borrower’s investment portfolio

Leadership

 


Borja Azpilicueta
Head of Capital Solutions

 

 


Esha Kumar
Managing Principal | Capital Solutions

 

 


Paul Henriot
Managing Principal | Capital Solutions

 

 


Paul Hawker
Co-portfolio Manager I RCF Partnership Strategy

 

 


Matteo Giani
Investment Director | NAV Partnership Strategy

 

 


Luca Comino
Co-portfolio Manager I RCF Partnership Strategy

 

Contact us

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

Ready to talk?

Key Risks

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.

Important Information

This document is not meant for retail audience and 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination. 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