HSBC Asset Management has completed fundraising for its global infrastructure debt fund, securing $612m (€593m).
The asset management arm of banking and financial services firm HSBC said its Global Transition Infrastructure Debt strategy will focus on the lower mid-market infrastructure debt segment, which is “dominated by small club and bilateral transactions”.
As reported last August, the fund manager had raised over $240m at the time for the global infrastructure debt strategy, which invests in senior and second-lien debt in investment-grade countries across Europe, North America and Asia-Pacific.
Despite launching a first vintage fund in a “challenging fundraising environment”, HSBC AM said it “leveraged its extensive experience in infrastructure and credit investing to secure commitments from institutional investors globally”.
The firm said it had closed eight investments to date, with three fully repaid, and has generated returns approaching the upper limit of its 10-12% target gross internal rate of return.
Dimitrios Papatheodorou, head of high-yield investments at HSBC AM, said: “Successfully delivering on this strategy has been made possible through a tight-knit team of professionals with direct hands-on experience in negotiating, structuring and executing often bespoke transactions that can deliver value to our investors.
“Our approach benefits from a wide network of time-tested relations with equity sponsors and advisers around the world that drives deal flow, resulting in a robust investment pipeline.
“The interest we have seen in the strategy represents a clear vote of confidence from investors in the fund’s performance and returns to date. This compelling strategy represents a notable and successful milestone in the growth of HSBC AM’s infrastructure debt offering.”
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