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Alternative Investment Solutions
Since beginning our journey in 1989, we've become known for our thorough understanding of alternative assets and the marketplace, driven by a commitment to prioritising our clients' evolving needs. Our range of products and services has continuously adapted, ensuring each solution is perfectly suited to our clients' unique requirements.
Integrating alternative investment strategies into your portfolio could significantly enhance its performance. Such investments are designed to complement traditional assets, potentially offering increased and diversified returns that do not closely follow the trends of conventional markets. Based on an individual's investor profile, HSBC may suggest exploring the advantages of alternative investments.
Alternative investments, encompassing hedge funds, private equity, private credit, real estate and infrastructure, provide distinct characteristics that differentiate them from traditional asset classes. These include:
- Diversification benefits: Offering a low correlation with traditional assets, they enhance portfolio diversification
- Liquidity variance: Alternatives present less frequent liquidity opportunities. Closed-ended funds require a commitment for the entire investment term with limited exit options, whereas open-ended funds may allow withdrawals on a more regular schedule
- Fee structure: The fees remain significant due to the intricate due diligence required and the complexities involved in the strategies and structure
- Transparency: Such investments typically avoid revealing their competitive advantage, often resulting in infrequent or appraisal-based asset valuations
- Variable returns: The performance can vary significantly among managers, with HSBC suggesting investments with top-tier managers for better outcomes. Past performance is not indicative of future performance
- Active management: Unlike passive investments, these strategies demand active management without adhering to a benchmark
- Exclusivity: The asset class has previously been reserved for institutional investors, however now HNW and UHNW clients can invest depending on their investment knowledge and risk profile
Our offering
- Expertise: Our long-established history in the space and advantageous global reach has earned us a prestigious reputation, making us a preferred partner for clients and fund managers alike. We facilitate access to new alternative investment opportunities, offering unparalleled services, resources and connections
- Knowledge sharing: At HSBC, we are committed to educating our clients about the nuances of alternative investments. We aim to enhance your understanding of their benefits, behaviors, and the various products available
- Long term perspective: We recommend adopting a long-term perspective when investing in alternatives, providing guidance on how they can diversify and enhance your portfolio
- Consistent outcomes: since 1989, our track record stands testament to our expertise and commitment to helping clients achieve their financial objectives
- Selective Management: HSBC excels in navigating through solutions, market insights, and projections to offer bespoke advice and high-conviction investment solutions
Unique benefits
- Infrastructure
Benefit from our institutional platform, enabling access to compelling investments, lower minimum investment requirements, and institutional share classes.
- Leverage
Our capabilities include providing clients with access to unique hedge fund and private equity investment opportunities.
- Secondary market access
Benefit from our internal market, facilitating seamless transactions.
- HSBC network
Positioned as a global leader in asset investment, our extensive network significantly benefits our clients.
- Performance
Since 1989, our track record stands testament to our expertise and commitment to our clients.
- Execution
Access our world-class global trading platform, staffed by expert trading teams.
Hedge funds
Hedge funds offer a sophisticated investment approach, utilising a broad set of strategies to explore opportunities beyond the reach of conventional investment managers. These funds are designed to enhance portfolio diversification, deliver superior long-term gains, and cushion against market volatility. Their agile strategies empower managers to swiftly adjust to shifting market dynamics.
Private equity
Private equity funds are investment vehicles that pool capital to invest in private companies outside the public stock markets. These funds aim to deliver unique, market-independent returns by harnessing opportunities in specialized sectors worldwide, on both equity and credit fronts.
Private Credit
Private Credit involves non-bank financial entities extending loans to small and medium-sized enterprises (SMEs) that are typically unrated. Historically, banks were the primary lenders to this segment. However, post-Global Financial Crisis (GFC) regulatory changes have led to a significant reduction in bank lending, paving the way for alternative lenders to step in.
Real estate
Our focus within the Real Estate sector is on private (non-listed) real estate ownership, encompassing both commercial (including offices, retail spaces, logistics, and hospitality) and residential properties.
Infrastructure
Infrastructure investment targets essential, long-term physical assets used by the general population. This category includes Communication infrastructure like mobile towers and satellites, Utilities including water, waste management, and renewables, alongside energy and transportation infrastructure such as airports, ports, and toll roads.
Open ended Solutions
Our expanding array of open-ended private market solutions offers investors the flexibility of immediate access to their investments without the traditional capital call process. This innovative approach aims to seamlessly blend the benefits of private market investments with the liquidity often associated with public markets.