HSBC Asset Management (AM) has announced the final close of its second UK direct lending vintage above target at $2bn (£1.48bn), with commitments from institutional investors across the fund and associated mandates.
HSBC said the second fundraise is approximately twice the size of the first, supported by a combination of repeat and new commitments from a globally diverse institutional investor base across Europe, Asia and North America, including from within the HSBC Group.
Read more: Obra Capital closes fourth CLO at $403m
The strategy invests alongside HSBC UK Bank in senior secured loans to private equity-backed companies within underserved low-to-core middle market segments, targeting high growth, resilient borrower profiles. Transactions typically feature 3-4x leverage, robust maintenance covenants, and equity cushions of around 70 per cent.
An exclusive sourcing partnership with HSBC UK Bank plc provides investors with access to a market-leading origination network, supporting disciplined deployment and diversified portfolio construction.
Read more: PGIM broadens private credit offering with new wealth fund
“This marks an important milestone in the buildout of our direct lending offering. The strong client support reflects the appeal of our conservative investment approach, which has resonated with institutional investors seeking resilient income and downside protection in the current market environment,” said Tom Green, head of direct lending at HSBC AM.
