HSBC Private Banking raised more than US$2.3 billion of private client funding for alternative investments globally in 2020. Despite Covid-19, this is an increase of over 90% from US$1.2 billion in the previous year.
The company offered eligible clients a diverse mix of alternative solutions across a broad range of product solutions including hedge funds, private equity, private credit and a private Reit strategy. And the number of its clients investing in alternatives in 2020 rose over 26% from the previous year.
In Asia, HSBC raised US$1.341 billion for alternative investments in 2020, while EMEA raised US$963 million over the same period.’
Henry Lee, global head of alternatives at HSBC Private Banking, says: “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 recognized as an indispensable part of clients’ portfolios if they are to achieve their long-term strategic initiatives.”
Edward Moon, regional head of alternative investments, Asia, at HSBC Private Banking, adds: “In Asia, despite the challenges posed by Covid-19, our alternatives business saw a record year in capital raising on behalf of our clients across the region. In particular, there was increased investment activities across the private markets spectrum and we expect this trend to continue as opportunities for suitable clients to capture illiquidity premiums over public markets gain traction in 2021 and beyond.”