HSBC AM launches first $800m direct lending fund

By Daniel Lanyon on Thursday 24 May 2018

Alternative Lending

The first close for the alternative credit fund was held on 31 October 2017, second on 19 January 2018 and final on 27th April 2018.

HSBC AM launches first $800m direct lending fund
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HSBC Global Asset Management has made the final close of its first dedicated HSBC Diversified Loan Fund focused on direct lending, according to a statement by the firm.

The fund, HSBC AM says, fits within "a fully managed, alternative credit solution" and has closed at $800m. The fund will primarily invest in floating rate, senior secured credit instruments such as syndicated loans, as well as senior secured and unitranche loans to middle market companies.

HSBC Global Asset Management anticipate 300-400 underlying positions within the fund once it is fully invested across North America, Europe and Asia.

William Benjamin, Head of Alternative Investment Funds, HSBC Global Asset Management Limited, says demand has been strong among investors.

“The Fund has performed well in the short period since our first close. The first few months of 2018 saw increased market volatility and difficult performance for both equities and fixed rate asset classes, despite this, we’ve seen some strong and resilient performance demonstrated by our Syndicated Loan managers," he said.

"We have also seen the first deployment from our Direct Lending managers, with both of them showing healthy investment pipelines,” he added.

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