HSBC restructures private equity business

The bank’s venture capital unit, traditionally focused on small companies, will be rolled into HSBC Private Equity to up its investment level and target larger companies.

HSBC Ventures, the venture capital unit of HSBC, has been rolled into its big brother HSBC Private Equity, the European private equity arm of HSBC Group. The move is meant to improve the firm’s venture capital strategy, in particular its focus on the UK mid market sector.

The move will up the level of financial commitment the unit can offer investee companies, said a spokesperson for the group. In the future investments of up to £15m could be made in UK companies, thanks to the new access to HSBC Private Equity’s larger coffers.

Traditionally HSBC Ventures has invested in the smaller end of the venture capital market, and in the last nine years, has made commitments to more than 50 businesses, said Noel Quinn, head of planning & development at HSBC Commercial & Corporate Banking. “The merger will allow a broader range of businesses to benefit from its help, backed by the wider resources and funds of HSBC Private Equity,” he said.

HSBC Private Equity manages £1bn worth of funds across Europe through a network of offices in London, Manchester, Paris, Dusseldorf and Stockholm. In the last 30 years, the group has invested in around 400 companies.