HSBC Alternative Investments unveils first dedicated loan fund

Lean fundHSBC Alternative Investments Limited (HAIL) has launched a diversified loan fund, combining both loan investing and direct lending within a fully managed, alternative credit solution.

So far it has raised $550 million (€443.7 million) with the final close planned for no later than April 2018.

The fund will primarily invest in floating rate, senior secured credit instruments such as syndicated loans, as well as senior secured and unitranche loans - loans combining senior and subordinated debt into one debt instrument - to middle market companies.

HAIL anticipates between 300 and 400 underlying positions within the fund once it is fully invested. The investments can be made in North America, Europe and Asia.

William Benjamin, head of hedge funds at HAIL, said: “The opportunities in both global loan and direct lending markets have increased considerably in recent years, driven by a number of factors – including regulatory changes regarding bank capital requirements, increased private equity buyout activity and increased M&A activity funded by debt.”

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