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March 30, 2021updated 13 Apr 2021 3:52pm

HSBC Private Banking raises record $2.3bn in alternative investments in 2020

By Patrick Brusnahan

HSBC Private Banking raised more than $2.3bn of private client funding for alternative investments globally in 2020.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

This was across a wide range of product solutions including hedge funds, private equity, private credit, and a private REIT strategy. Despite the global Covid-19 pandemic, this was a 90% increase on 2019’s $1.2bn figure.

In addition, the number of clients investing in alternatives jumped by 26% compared to 2019.

Furthermore, in Asia, HSBC raised $1.341bn for alternative investments in 2020, while EMEA raised $963m over the same period.

Henry Lee, global head of alternatives, HSBC Private Banking, said: “Not only are we seeing an increased demand for alternative investments from our clients because of the depth, breadth and quality of our capability, but alternative investments are becoming recognised as an indispensable part of clients’ portfolios if they are to achieve their long-term strategic initiatives.

“We continue to build upon the service offering to ensure that clients can access the best risk/return alternative investments across the spectrum of liquid and private markets and have a particular focus on developing and providing access to bespoke solutions across credit opportunities, secondary private equity, co-investments and impact.”

In March, the board at HSBC has tabled a resolution committing the firm to a phase out of financing coal-fired power and thermal coal mining by 2030 across the EU and OECD.

The resolution, put to a vote at the AGM on 28 May 2021, follows months of negotiations between HSBC and a $2.4trn coalition of investors led by campaign group ShareAction.

This week, HSBC, which channelled more than $15bn to coal developers from October 2018 and October 2020, pledged a series of commitments to fight the climate crisis, following pressure from the coalition.

The announcement comes after ShareAction field a shareholder proposal in January, calling on HSBC to reduce its exposure to fossil fuels.

The coalition, including Amundi and Man Group, agreed to withdraw the shareholder proposal in exchange for a board-backed resolution, but pledged to take further action next year if the bank failed to adequately implement new commitments.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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