HSBC says committed to its private credit investments after report on $4 billion pause
HSBC Responds to Financial Times Report on Private Credit Investment Pause
(Corrects paragraph 1 to say HSBC statement came after FT report, not as a denial)
Background of the FT Report
May 15 (Reuters) - HSBC said on Friday it remains committed to its private credit investments, after an earlier Financial Times report that said the lender had paused a $4 billion plan to invest in its own private credit funds.
The FT report came only over a week after Europe's biggest lender took a $400 million hit linked to the collapse of British mortgage lender Market Financial Solutions, adding to private credit market jitters.
HSBC’s Official Statement
“We are committed to our asset management’s offering in private credit funds,” an HSBC spokesperson told Reuters in an emailed statement.
Timeline of HSBC’s Private Credit Investment Plan
The London-listed bank had announced the $4 billion private credit investment plan in June 2025.
Industry Context and Regulatory Concerns
Global Regulatory Scrutiny
However, regulators worldwide have since become more concerned about banks' exposure to the $3.5 trillion private credit industry.
Investor Reaction and Market Sentiment
Wealthy investors have queued up to withdraw their money from private credit vehicles in recent months amid worries about weakening lending standards and concerns that artificial intelligence could severely disrupt the software industry, a sector where many funds have significant exposure.
Details from the Financial Times Report
Current Status of HSBC’s Private Credit Funds
The FT report said that HSBC had not transferred any private credit funds until now and had no current plans to do so, citing two sources familiar with the decision-making process.
HSBC’s Internal Review
Chairman’s Statement to Shareholders
The report came after HSBC Chairman Brendan Nelson told shareholders that the lender had "substantially completed" a review of its lending policies and practices following the $400 million hit.
(Reporting by Mihika Sharma and Preetika Parashuraman in Bengaluru; Editing by Mrigank Dhaniwala, Subhranshu Sahu and Rashmi Aich)
