The firm writes that the launch of the two strategies follows increasing institutional client interest within the fast-growing private credit market.

Global Transition Infrastructure Debt Strategy

The launch of HSBC AM’s Global Transition Infrastructure Debt strategy has attracted over USD240 million in client commitments to date.

The strategy invests in senior and second lien debt, targeting mid-market borrowers in investment grade countries in Europe, North America and the APAC region.

With an estimated USD275 trillion of spending on physical assets needed to reach net zero by 2050, HSBC AM’s Global Transition Infrastructure Debt strategy aims to provide investors with opportunities to finance infrastructure assets that facilitate the transition, such as clean power, energy efficiency and clean industry.

HSBC AM’s Infrastructure Debt team – which was established in 2017 and has raised USD4.1 billion in commitments to date – will also leverage HSBC Bank’s global origination platform, as well as external banks, advisers and project sponsors, to source investment opportunities.

European Senior Direct Lending Strategy

HSBC AM has also expanded its direct lending franchise with the launch of its European Senior Direct Lending strategy, taking the total commitments across the HSBC Direct Lending platform to USD2.4 billion. It has now completed its second close, with fundraising expected throughout 2025, following deployment of USD1.4 billion to date across the platform.

The European Senior Direct Lending strategy is an extension of HSBC AM’s UK Direct Lending strategy, which launched in 2020, and aims to provide investors with access to an extensive origination platform across Continental Europe and the UK through an exclusive partnership with HSBC Bank.

It invests in senior secured loans to private equity backed European middle market companies, with a focus on companies with an EBITDA between EUR10 – 35 million. The strategy recently supported the refinancing of Creditinfo, a leading service provider for credit information and risk management solutions worldwide.

Scott McClurg, Head of Private Credit, HSBC AM says: “The growth of our private credit platform plays an important role in our wider alternatives business. The launch of our two new strategies demonstrates our commitment to providing clients access to potentially compelling investment opportunities both within Europe and globally.

“The extension of our direct lending offering to Europe reflects the demand we are seeing from institutional investors for a high-quality, mid-market European direct lending strategy. Our offering captures the benefits of our partnership with HSBC Bank to leverage a strong pipeline of pan-European loan origination opportunities.

“We believe in the vital role that substantial and sustained investment in infrastructure will play in the transition to net zero. Our Global Transition Infrastructure Debt strategy provides clients with the opportunity to contribute to, and benefit from, the shift towards a more sustainable global economy while aiming to deliver compelling returns.”

Pension funds will be major investors in the fund which government says brings together key institutions to mobilise billions more in private investment – specifically in the net zero transition – and generate a return for taxpayers.

The wealth fund aligns the UK Infrastructure Bank and the British Business Bank to invest in what Chancellor Rachel Reeves calls “the new industries of the future”.

Reeves has established a National Wealth Fund Taskforce which is chaired by the Green Finance Institute and includes former Bank of England Governor Mark Carney, Barclays CEO C.S Venkatakrishnan, António Simões, Chief Executive Officer at Legal & General and Aviva CEO Dame Amanda Blanc.

Blanc says: “At Aviva we are backing the UK and stand ready to invest even more to help boost growth, create jobs and deliver net zero. We need closer working between government and business to make that happen. The establishment of a new National Wealth Fund is a significant step in the right direction. We now must work at pace to turn these good ideas into investable projects which can make a difference.”

The National Wealth Fund follows speculation from the investment industry about how policymakers would encourage more investment from UK pension funds in domestic companies.

Among those welcoming the provision of a multi-billion-pound vehicle in which those saving for their retirement can make allocations to assets with long-term horizons, is Nigel Peaple, Director of Policy and Advocacy at the Pension and Lifetime Savings Association, who says:“In examining the role pensions might play in providing additional investment in UK growth assets, the PLSA recommended last year that the government take steps, alongside the British Business Bank, to improve the pipeline of investible assets available to pension funds.”

He adds: “We welcome the government acting decisively to set out plans for a National Wealth Fund for this purpose and look forward to working in partnership to help develop solutions that work for savers, pension funds and the economy.”

Meanwhile, the Investment Association (IA), whose members manage GBP8.8 trillion of assets in the UK, has written to Chancellor Reeves to outline how the sector can support the new government in its ambition to kickstart the nation’s growth.

Chris Cummings, CEO of the IA, says: “We strongly support the new government’s ambition to drive economic growth and build financial resilience of households up and down the country. We must act to channel more capital into thriving British businesses and infrastructure projects.”

However, Cummings adds a word of caution, noting: “We must find the right balance between risk and safety across the system, and between necessary change and the stability needed for long-term decision making.”