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HSBC closes Ardian-led secondaries process

The bank moved a $1bn portfolio of assets off its balance sheet into a vehicle anchored by secondaries capital, a repeat of a deal it executed last year.

HSBC has used a GP-led process to raise a secondaries fund, repeating a process it carried out last year.

The bank has held a $1 billion final close on Private Equity Opportunities II, which comprises 26 private equity funds and $100 million in fresh co-investment capital, according to a statement.

Institutional clients of HSBC’s Private Banking and Asset Management businesses are among the LPs.

Secondaries Investor reported in July that Ardian was leading the process to move a strip of assets off the bank’s balance sheet into a closed-end vehicle. It is not clear if the asset manager underwrote the whole thing.

Private Equity Opportunities I was raised the same way, closing on $1.34 billion in 2020. It is understood that HarbourVest led that process.

“This demonstrates our ability to offer clients access to institutional quality secondary and co-investment opportunities,” said HSBC Alternatives chief executive Joanna Munroe in the statement. “These transactions help clients gain more efficient exposure to the value add of private equity, including through faster deployment speed and potentially lower fees.”

It is not clear if an adviser worked on the process.

Assets in the fund include Charterhouse Capital Partners X, BC European Capital X and EQT Mid Market US, according to UK public filings.

In addition to facilitating clients’ access to private equity, the process is part of HSBC’s plan announced in February 2020 to reduce its gross risk-weighted assets by over $100 billion, Secondaries Investor reported in July.

In 2020, HSBC brought all of its private market fund investments teams under the umbrella of HSBC Alternatives. The combined investment team is led by Jonathan Marlow, previously global head of the Principal Investments unit.

HSBC Alternatives has $54 billion of assets under management and advice, with $28.2 billion across private market funds and mandates, as of 30 September 2021.