- Only 25 per cent of Hong Kong’s high net worth investors reported having access to a wide range of alternative investment products. However, nearly three times that number expressed confidence in investing in them, according to HSBC’s research.1
- Real estate (64 per cent) and private equity (56 per cent) are the most popular asset classes among Hong Kong high net worth investors who are aware of private markets.1
- HSBC Global Private Banking recorded strong momentum in alternative investments in Asia with double digit growth in asset under management of alternatives driven by strong inflows.
HSBC hosts its first Private Markets Conference in Hong Kong on 20 November 2024, providing ultra high net worth and high net worth clients with exclusive insights into a variety of private markets investment strategies from renowned asset and investment managers.
Industry thought leaders discussed both opportunities and challenges in private markets, covering private equity, private credit, venture capital, infrastructure and real estate.
Lok Yim, Regional Head of Global Private Banking, Asia Pacific, HSBC, said: “Incorporating private markets into an investment portfolio enhances the risk-return profile through diversification, especially during times of market volatility and inflationary concerns. Our global scale and connectivity with HSBC Alternatives 2, coupled with the depth and breadth of our extensive relationships are key enablers for us to provide clients access to best-in-class investment managers and exclusive opportunities. We are delighted to host an intimate event that brings critical insights and networking opportunities to our clients.”
HSBC Global Private Banking has recorded an exceptional year in alternative investments, with assets under management showing robust double-digit growth, driven by strong inflows. Notably, there is a significant increase in inflows into private market funds from clients who are new to private markets, indicating a growing interest from private wealth clients.
The uptake was driven by an expanded private market solutions product shelf across various investment strategies in light of a growing emphasis on portfolio diversification. Clients are increasingly seeking higher returns from asset classes that are less correlated with the public market, particularly in a shifting economic environment.
Mathieu Forcioli, Global and Asia Pacific Head of Alternatives, Global Private Banking & Wealth, HSBC commented: “We are seeing a remarkable uptake in interests in private market investments from individuals, along with a broader industry shift toward broadening access for ultra high net worth investors in recent years. Our recent research1 showed that only 25 per cent of Hong Kong’s high net worth investors had access to a wide range of alternative investment products, yet nearly three times that number expressed confidence in investing in them. Looking ahead, we remain committed to providing clients with a wide array of alternative solutions tailored to their needs and will continue to work closely with them to optimise their investment strategies.”
The global alternatives industry is poised to exceed USD30 trillion in assets under management by 2030, up from USD16.8 trillion at the end of 20233. Real estate (64 per cent) and private equity (56 per cent) are the most popular asset classes among Hong Kong high net worth investors who are aware of private markets, according to HSBC’s research.1
Some of the external speakers at the HSBC Private Markets Conference included: [In alphabetical order]
- Joseph Bae, Co-CEO, KKR
- Hans-Jörg Baumann, Chairman and Partner of Private Debt, StepStone
- Philippe Camu, Chairman & Co-CIO of Infrastructure, Goldman Sachs Asset Management
- Eugene Cook, Head of Private Equity, Blackstone Korea
- Nicholas Goodman, President and Chief Financial Officer, Brookfield Corporation
- Chris Gradel, Co-founder and CEO, PAG
- Jack Hennessy, Partner, Chairman of ANZ & Cross Border, EQT Private Capital Asia
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Media enquiries to:
Venus Tsang +852 9787 9013 venus.y.t.tsang@hsbc.com.hk
Note to editors:
1 The findings of HSBC Global Private Banking Benchmark Study 2024 are based on extensive research carried out by Savanta on behalf of HSBC Global Private Banking. Results are based on a sample of 2091 high net worth individuals who chose to take part with at least USD2 million of investable assets. The research was conducted in India, the UK, the USA, Singapore, mainland China, Hong Kong, Switzerland, Taiwan, the UAE and Mexico. ↩
2 HSBC Alternatives is the alternatives team at HSBC Asset Management, its combined assets under management and advice of USD68.7 billion, as of 31 March 2024.↩
3 Future of Alternatives 2029, Preqin ↩
About HSBC Global Private Banking
HSBC Global Private Banking helps clients manage, grow and preserve their wealth for generations to come. Its network of global experts helps clients access investment opportunities around the world, plan for the future with wealth and succession planning, manage their portfolio with tailored solutions, and find the right support for their philanthropy. www.privatebanking.hsbc.com
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of USD3,099 billion at 30 September 2024, HSBC is one of the world’s largest banking and financial services organisations.
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