HSBC closes private client ‘Vision’ fund

The debut fund will target primary, secondaries and direct co-investments across multiple geographies, sectors and strategies.

HSBC Private Banking has collected $250 million for an annual investment programme offering private clients access to private equity.

Vision Private Equity 2019 will target primary, secondaries and direct co-investments across multiple geographies, sectors and strategies, according to a statement.

The fund was raised from HSBC’s global private banking clients and will invest alongside institutional capital from the bank’s Global Asset Management business, which manages around $11.4 billion across private market funds and mandates.

HSBC will launch annual Vision funds alongside its existing vintage private equity series. The most recent, Vintage 2018 BPEA, closed on $300 million earlier this year. The 2018 fund offered access to a feeder vehicle for Baring Asia Private Equity Fund VII, which has collected at least $5.5 billion, according to PEI data.

The private bank has previously committed to 17Capital Fund IV, a €1.2 billion 2016-vintage; BC European Capital X, a €7 billion 2016-vintage and Carlyle Europe Partners IV, a €3.7 billion 2014-vintage, according to PEI data.

“For many clients alternatives are an important part of a well-diversified, multi-asset core portfolio, in line with a client’s risk tolerances and preferences, and this is reflected in our strategic asset allocation,” global head of managed investment solutions Henry Lee said the statement.

“For suitable investors with a long-term investment horizon private equity can play a valuable role in portfolio diversification.”

Institutionalising access to the private wealth market is the holy grail for some of private equity’s biggest firms. Individual investors, wealthy families and high-net-worth clients remain a comparatively untapped source of capital in a market.

Blackstone has shown it can be done on a large scale. The firm was expected to raise around $15 billion of private wealth capital in 2018 through its $60 billion private wealth solutions business as of November, Joan Solotar, who heads the division, told PEI at the time.