HSBC will provide additional capital to these companies and their private equity owners in a market that Deloitte research shows has been underserved by debt funds.

“The partnership allows us to access all eligible loan opportunities originated by HSBC UK and participate in those that best meet our clients’ needs," Dominic Swan, global CIO for private debt and real assets said.

Tom Green, head of investment for UK mid-market credit at HSBC AM, will lead the venture, along with five mid-market credit specialists and the firms’ broader credit research and infrastructure teams.

“Private debt is one of the fastest growing asset classes, particularly with UK pension funds and insurers seeking enhanced yield, stable cashflows and diversification. The capability provides access to private debt assets with an attractive yield premium that are traditionally hard to source,” HSBC AM’s institutional sales lead Maria Ryan said.