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Private equity investment services

At HSBC Private Bank, our private equity investment approach is focused on selecting and investing with the managers. We firmly believe that these top-performing individuals can offer our clients significantly more rewards for their private equity investment for the associated risks, especially when considering the controlled nature of private equity.

What is private equity?

At a surface level, private equity investment involves owning shares or interests in companies that are not listed on public stock exchanges. This in turn allows those investing in them to potentially make greater returns on their funds compared to more traditional investments.

As a result, those who invest in private equity ventures gain a specific stake in the company/companies of their choosing under well-monitored conditions designed to mitigate risk and loss potential.

What benefits come with private equity investment?

Due to its unique structure and investment requirements, those who choose to invest in private equity may gain access to the following beneficial perks: 

  • Co-investment with experts: You may have the chance to invest alongside leading entrepreneurs, investment managers, and industry experts in certain fields, who may have substantial personal wealth in the same private equity funds.
  • Portfolio diversification: Private equity funds are actively managed funds of private companies They have the potential to offer investors the chance to achieve uncorrelated attractive returns through different vintages, sectors, geographies, and strategies.
  • Unique access: Certain private equity services may offer the opportunity to access top-tier managers that are typically unavailable for more traditional investment options, previously being exclusive to institutional investors.
  • Expanded opportunities: Private equity typically provides access to an expansive array of investment opportunities, especially within emerging markets and modern technology sectors.
  • Decreased market fluctuation: Due to their more isolated nature, private equity investments often exhibit lower valuation volatility in comparison to other asset classes.
  • Strategic timing advantages: Private equity managers benefit from the advantage of timing knowledge, using this to fulfil their investment goals more directly, unlike in public markets.
  • High growth potential: Private equity investments can offer a considerable potential upsurge in growth, driven by a patient, long-term capital approach which sidesteps the short-term, quarter-to-quarter focus of public companies. Although there is a perception that private equity primarily aims at cost reduction, these strategies usually concentrate on executing long-term expansion plans to improve revenue and growth.

Learn more about private equity

Whether you’re an entrepreneur, a business professional, or simply curious about private equities, this video will demystify the concept by discussing its key principles and exploring the considerations to be taken when thinking about investing in private equity.

Our private equity services

Thanks to our extensive network, rich experience, and solid reputation in the private equity market, we’re able to offer our clients consistent access to high-conviction investment solutions tailored to their current and future needs.

We’ll provide you with a variety of private equity solutions across primaries, secondaries, and co-investments through our renowned annual discretionary private equity program, as well as access to a range of leading private market vintages.

And for our Ultra-High-Net-Worth (UHNW) clients, we offer access to special exclusive investment opportunities, tailored to your investment knowledge and risk appetite.

Please reach out to your Relationship Manager for more information or speak with a member of our team to learn more about our private equity investment process, hedge fund planning opportunities, or liquidity planning services .

(Please note that our offerings may vary by region).

Risks of investing in private markets

The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Past performance information presented is not indicative of future performance. The return and costs may increase or decrease as a result of currency fluctuations. 

  • Liquidity Risk - Investors may be unable to dispose of an investment quickly and at a price that’s closely related to recent similar transactions. There is no guarantee of distributions and no established secondary market.
  • Event Risk - A significant event may cause a substantial decline in the market value of all securities. 
  • Long-term Horizon - Investors should expect to be locked-in for the full term of the investment, which is subject to extensions.
  • No Capital Protection - Investors may lose the entirety of invested capital.
  • Unpredictable Cashflows - Capital may be called and distributed at short notice.
  • Economic Conditions - Ability to realise/divest from existing investments depends on market conditions and the regulatory environment.
  • Risk of Forfeiture - Failure to make call payments could result in forfeiture of commitment, including invested capital, without compensation.
  • Default Risk - in the event of default investors risk losing their entire remaining interest in the vehicle and may be subject to legal proceedings to recover unfunded commitments.
  • Reliance on Third-party Management Teams - Underlying investments will be managed by various third-party management teams that will in aggregate determine the eventual returns for the investor.

The risk factors listed above are not exhaustive, always refer to product specific documentation for full details and risk disclosures.

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