HSBC Asset Management (HSBC AM) has launched a new venture capital (VC) investment strategy aimed at funding companies that will participate in the transformation of financial services.

Its intention is to provide clients with exposure to B2B companies offering either software or financial services to enterprises or institutions. As a part of this, HSBC AM will participate in series A and B funding rounds of companies with business activity in Europe and Asia.

The VC strategy is aimed at institutions seeking to access innovative companies, including institutional asset allocators, family offices, private banks, and ultra-high net worth individuals.

In addition, the strategy will be run by Remi Bourrette, head of venture & growth investments, and Kara Byun, director, Venture & Growth Investments. Both have operational financial services experience gained in Europe and Asia and have been investing together for a number of years.

Joanna Munro, CEO, HSBC Alternatives, said: “As part of our commitment to provide clients with exciting investment opportunities, this strategy will give them access to high growth sectors and parts of the world where economies are expanding fast such as the Greater Bay Area in China. The team’s sector experience and investment rigour, coupled with our profile as one of the world’s largest banking and financial services organisations, is a major advantage in the eyes of both investee companies and investors.”

Bourrette added: “We are interested in the tectonic changes of the industry, even more so when they relate to the role of finance in the economy and society in general. We believe the transition to ESG-driven finance will lead to the reinvention of many product lines creating a powerful tailwind for sustainability-native companies. We also see wealth creation in Asia as an enduring trend that will benefit technology companies across wealth management, capital markets and insurance.”

Also this month, HSBC AM formed a Sustainability Office and reorganised its Responsible Investment team as part of strengthening its sustainability proposition.

The British banking group has appointed Erin Leonard as global head of Sustainability to lead the newly formed Sustainability Office, with immediate effect.