HSBC Asset Management is planning to launch a venture debt strategy in partnership with HSBC’s Innovation Banking unit, formerly known as Silicon Valley Bank UK.
Pete Scott, who was previously at SVB Capital and SVB Bank, which collapsed last year, has been appointed to lead the development of the new capability in the position of head of innovation credit.
HSBC AM said its venture debt strategy would invest in a portfolio of senior secured loans to growth and late-stage venture capital-backed tech and life science companies.
The asset selection will be managed by HSBC AM, leveraging HSBC Innovating Bank’s presence in the UK, US and Europe, as well as other innovation hubs that the bank serves.
The asset manager said the partnership with HSBC Innovation Banking would work similarly to previous direct lending strategies by HSBC AM.
“The response from the market to HSBC Innovation Banking across our global hubs has been really positive,” said Simon Bumfrey, chief executive officer of HSBC Innovation Banking UK.
“Establishing this venture debt capability with HSBC Asset Management expands the breadth of flexible solutions we now have to meet the financing needs of the innovation ecosystem, positioning HSBC as long-term partner for innovation clients globally.”
The venture debt strategy will sit under HSBC AM’s alternatives business, which has combined assets under management and advice of $76.1bn (€72.6bn) as of 30 September 2024.
Before joining HSBC, Scott was at SVB Capital and SVB Bank for 28 years, most recently as chief credit officer at SVB Capital.
SVB collapsed in March 2023 amid a US regional banking crisis that claimed the scalp of the former CEO of Swedish pension fund Alecta. Major institutional investors have brought class actions against SVB.
HSBC bought SVB for £1 in a firesale led by the UK government and central bank to protect UK tech firms.
Based in San Francisco, Scott will be responsible for building the HSBC AM venture debt team and bringing a product to market.
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