HSBC is preparing to enter the rapidly expanding private credit market as part of its efforts to boost revenue following extensive restructuring, Reuters reported on Friday, citing five sources familiar with the plans.
HSBC Exploring Move into Private Credit Market – Reuters
The bank has reportedly held early-stage discussions with several private credit firms to explore potential partnerships.
Rather than launching a full-scale private credit operation, the report states that HSBC is considering a more measured approach, with some executives said to be expressing caution about the potential cost versus revenue benefits.
One source told Reuters that CEO Georges Elhedery and other senior leaders are hesitant to make a significant investment without clear returns.
Meanwhile, ongoing economic uncertainty, including trade disruption linked to U.S. President Donald Trump’s tariffs, has also prompted the bank to adopt a more cautious stance.
Reuters states that HSBC may offer private lending through its existing asset management and life insurance businesses in Hong Kong, rather than creating a dedicated private credit unit.
Jamie Markham, head of credit and capital management, is reportedly leading the initiative.
Private credit has gained momentum as lightly regulated asset managers take market share from traditional banks. Moody’s forecasts the sector could double in size to $3 trillion by 2028.
Reuters calculates that HSBC manages a $493 billion wholesale loan book, adding that its established corporate client base could make it an attractive facilitator for private credit deals.
