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HSBC joins forces with Partners Group to launch private equity fund

HSBC Investment Management has linked up with Switzerland-based asset manager Partners Group to launch the HSBC Partners Group Global Private Equity Fund, aimed at private clients and smaller institutions. Investors have to be able to commit at least $25,000.

HSBC Partners Group Global Private Equity Fund has a minimum target of $25m and no upside limit. The fund's strategy will be set by the board, comprising HSBC Investment Management directors and an independent director, while Partners Group will act as advisor.

The firm said in a statement that the new fund would invest in different geographies and industry sectors, and reduce the 'cash drag' effect - the performance reduction from holding cash reserves in the portfolio.

Andrew Withey, senior director at HSBC Investment Management, said, 'The two barriers to the private equity market are the stock-specific risk and a lack of liquidity. We have been looking for the best way to overcome these to provide our clients with access to the market's high potential.'

HSBC Investment Management operates as a part of HSBC Asset Management, the core global investment management business of the HSBC Group.

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