On 20 November 2024, HSBC held its initial Private Markets Conference in Hong Kong, offering prominent asset and investment managers rare insights into a range of private markets investment ideas to its ultra-high net worth and high net worth clients.

Experts focused on private equity, private credit, venture capital, infrastructure, and real estate, as well as the prospects and difficulties in private markets.

In the realm of alternative investments, HSBC Global Private Banking experienced an impressive year. The assets under management displayed strong double-digit growth, fuelled by substantial inflows.

Significantly, clients who are new to private markets are investing more money in private market funds, which suggests that private wealth clients are becoming more interested.

The adoption was driven by a wider range of private market solutions products for different investment strategies, as portfolio diversity has become increasingly important.

In an economy that is changing, clients are increasingly looking for higher returns from asset types that are less linked to the public market.

Lok Yim, Regional Head of Global Private Banking, Asia Pacific, HSBC, said: “Incorporating private markets into an investment portfolio enhances the risk-return profile through diversification, especially during times of market volatility and inflationary concerns. Our global scale and connectivity with HSBC Alternatives, coupled with the depth and breadth of our extensive relationships are key enablers for us to provide clients access to best-in-class investment managers and exclusive opportunities. We are delighted to host an intimate event that brings critical insights and networking opportunities to our clients.”

Mathieu Forcioli, Global and Asia Pacific Head of Alternatives, Global Private Banking & Wealth, HSBC added: “We are seeing a remarkable uptake in interests in private market investments from individuals, along with a broader industry shift toward broadening access for ultra-high net worth investors in recent years. Our recent research showed that only 25 per cent of Hong Kong’s high net worth investors had access to a wide range of alternative investment products, yet nearly three times that number expressed confidence in investing in them. Looking ahead, we remain committed to providing clients with a wide array of alternative solutions tailored to their needs and will continue to work closely with them to optimise their investment strategies.”

The global alternatives business is expected to have more than $30trn in assets under management by 2030, up from $16.8trn at the end of 2023.

Based on HSBC’s research, the most preferred asset classes among Hong Kong high net worth investors who are familiar with private markets are real estate (64%) and private equity (56%).

Moreover, the HSBC Private Markets Conference featured the following external speakers:

• Joseph Bae, Co-CEO, KKR
• Hans-Jörg Baumann, Chairman and Partner of Private Debt, StepStone
• Philippe Camu, Chairman & Co-CIO of Infrastructure, Goldman Sachs Asset Management
• Eugene Cook, Head of Private Equity, Blackstone Korea
• Nicholas Goodman, President and Chief Financial Officer, Brookfield Corporation
• Chris Gradel, Co-founder, and CEO, PAG
• Jack Hennessy, Partner, Chairman of ANZ & Cross Border, EQT Private Capital Asia