Bank drops 4,500 US clients and pivots to Asia-focused lending with aim to build $50 billion credit fund
HSBC will inject US$4bn into its private credit funds to accelerate growth in the fast-expanding US$2tn global private credit market, according to Reuters.
The bank plans to attract additional external capital with the goal of building a US$50bn fund within five years through HSBC Asset Management’s alternative credit arm.
As part of this shift, HSBC is also exiting its US business banking portfolio, as reported by Reuters.
The lender stated, “Following a strategic review of our business, we have decided to exit our Business Banking portfolio in the United States.”
It added that it would support impacted clients through the transition and retain some clients in its Mid-Market and Global Network Banking divisions.
The exit will impact approximately 4,500 clients, as per The Wall Street Journal, which also reported that HSBC laid off 40 employees in its US business banking division.
HSBC declined to comment on the layoffs.
HSBC Asset Management has deployed US$7bn across 150 transactions since the private credit unit’s launch in 2018, according to Reuters.
Nicolas Moreau, CEO of HSBC Asset Management, said the group support would help attract external money: “It’s an arms race.”
The new funds will be invested globally, with an initial focus on direct lending in the UK and Asia, Moreau added.
The firm is positioning to compete with established players like Blackstone and Ares Management, which currently dominate the private credit market.
While some banks have chosen to partner with existing firms—such as Citi and UBS aligning with Apollo and General Atlantic—others like HSBC and Deutsche Bank are building their own ventures.
This broader strategy aligns with HSBC’s ongoing restructuring efforts. As reported by Reuters, the UK-based bank has been consolidating its operations to focus on Asia and the Middle East.
In January, it announced it would wind down its M&A and some equities businesses in the Americas and Europe.
It previously sold its Canadian business to Royal Bank of Canada for $13.5bn in 2022 and had exited US mass market retail banking in 2021 by selling and winding down parts of that business.
