HSBC Asset Management has agreed to take a minority stake in Radiant ESG, a US-based consulting firm focused on environmental, social and governance (ESG) as well as diversity and inclusion (D&I) issues. The firm was co-founded by Heidi Ridley and Kathryn McDonald, former chief executive officer and head of sustainable investing at Rosenberg Equities respectively.
With HSBC Asset Management’s backing, Radiant ESG will become RadiantESG Global Investors, a female-owned, independent asset management firm focused on next-generation ESG investment opportunities for institutional and wealth management clients worldwide.
The RadiantESG team has deep expertise in equity investing and ESG data analysis, research and insight. Ridley and McDonald have over 50 years of combined experience and each spent two decades at Rosenberg Equities, which they led to become the first fully ESG-integrated quant firm in 2017.
RadiantESG Global Investors intends to launch the next phase of its growth later this year with two investment strategies anchored on its proprietary “Positive Change” concept of ESG which captures ESG leaders, ESG evolvers and companies aligned with the United Nations’ Sustainable Development Goals (UNSDGs). The strategies will aim to address shifts in demographics and growing demand for more sustainable investment solutions.
The newly formed firm intends to grow its team over the course of the year and will seek an additional strategic partner to assist with infrastructure and distribution in the United States and other key markets.
Nicolas Moreau, CEO at HSBC Asset Management’s CEO, says: “RadiantESG has a powerful value proposition, credibility in the marketplace and a solid foundation for delivering strong risk adjusted returns. We’re compelled by the unique approach Heidi and Kathryn have developed and are excited to have the opportunity to support the launch of a female-owned asset management firm with a deep commitment to ESG and a successful track record of delivering sustainable investment strategies.”
The deal follows last year’s launch of HSBC Pollination Climate Asset Management, a joint venture between HSBC Asset Management and Pollination, a climate change advisory and investment firm, to create what it says is the world’s largest dedicated natural capital asset management company. Earlier this year, HSBC Asset Management also announced the final closing of the HSBC Real Economy Green Investment Opportunity (REGIO) Global Emerging Market Bond Strategy, which seeks to boost access to climate finance and help further develop the market for green bonds.