HSBC Asset Management (HSBC AM) has acquired a minority holding in the Radiant ESG as part of a strategic investment in the US-based firm.
Financial terms of the deal and the size of the investment were not shared.
Co-founded by Heidi Ridley and Kathryn McDonald, Radiant ESG is an ESG and diversity and inclusion (D&I) focused consulting firm.
The firm specialise in equity investing and ESG data analysis, research, and insight.
Ridley and McDonald, previously CEO and head of sustainable investing at Rosenberg Equities, have over 50 years of combined experience.
The investment will be used by Radiant ESG to revamp its business as an independent asset management firm under the new brand, RadiantESG Global Investors.
The newly formed firm will focus on providing ESG investment opportunities for institutional and wealth management clients around the world.
It plans to launch two investment strategies underpinning its proprietary ‘Positive Change’ concept of ESG which captures ESG Leaders, ESG Evolvers, and UNSDG-aligned companies.
The strategies will target shifts in demographics and evolving demand for more sustainable investment solutions.
HSBC AM CEO Nicolas Moreau said: “RadiantESG has a powerful value proposition, credibility in the marketplace and a solid foundation for delivering strong risk adjusted returns.
“We’re compelled by the unique approach Heidi and Kathryn have developed and are excited to have the opportunity to support the launch of a female-owned asset management firm with a deep commitment to ESG and a successful track record of delivering sustainable investment strategies.”
RadiantESG Global Investors is planning to expand its team with addition of new resources this year.
In addition, the firm will also seek an additional strategic partner to assist with infrastructure and distribution in the US and other key markets.
Ridley and McDonald added: “We are delighted to have the backing of an organisation with the caliber and reputation of HSBC Asset Management, who has consistently demonstrated the characteristics we believe are paramount to a strong cultural foundation, an innovative mindset and a client-first focus.”
HSBC AM launched its strategy to shape the market for sustainable investing last year.
The firm strives to achieve this goal through leadership in policy and industry engagement, company engagement, and embedding ESG across its investment approach.
Last year, HSBC AM launched HSBC Pollination Climate Asset Management, a dedicated natural capital asset management company.
The firm is a joint venture between HSBC Asset Management and climate change advisory and investment firm Pollination.