HSBC Private Banking recently announced the successful close of Vision Private Equity 2019, completing a successful six months of private equity and debt funding that has seen clients in Asia place more than US$500 million across a number of funds.

Vision Private Equity 2019 (Vision 2019), the first of a new programme of annual Vision Funds raised over US$250 million globally, with nearly half of the capital from clients in Asia. The fund has proven popular with clients looking for diversified private equity solutions, as well as those wishing to meet their annual asset allocation requirements in private equity through a single, diversified and professionally constructed portfolio.

Each HSBC Vision Private Equity portfolio is an annual single vintage composed of a blend of primary investments and selectively sourced secondary investments and co-investments.

Its overall objective is to deliver an expert mix of short and longer-term value, allowing investors to enjoy the benefits of blended diversification and potential returns offered by high-quality funds. Each portfolio is constructed from a set of core funds surrounded by a variety of carefully selected thematic funds and direct co-investment opportunities.

Vision 2019 was designed by HSBC Private Banking in partnership with HSBC Alternative Investments Limited (HAIL), a unit of HSBC Global Asset Management (AMG).

HAIL is one of the largest alternative specialist teams globally, managing US$11.4 billion across private market funds and mandates. The fund will invest HSBC Private Banking clients’ capital alongside HAIL’s institutional clients’ capital in primary, secondary and direct co-investment opportunities. This combination increases the opportunity set for the fund and enhances diversification.

According to Edward Moon, regional head of Alternative Investments, Asia, HSBC Private Banking, the increase in client adoption of alternatives within their strategic asset allocation is a response to volatile market conditions and the late cycle investment stage.

“In recent years, the overall number of publicly listed companies on US stock exchanges has been declining, or conversely, more companies are choosing to stay private and for longer periods than ever before,” comments Moon. “Against this general backdrop, clients with the appropriate risk profiles and who have a long-term investment horizon are increasingly looking to investment opportunities within private markets (both equity and debt) as a way to diversify their portfolios.”

“Demand for Vision 2019 has been strong and was followed by our successful placement of over US$230 million for Blackstone’s Global PE real estate fund from our clients in Asia earlier this year,” Moon continues.