HSBC Spins Off Asia Private Equity Business

HSBC has spun off its Asia private equity fund management business, Reuters reported. The group’s management team now holds 80.1% of the business, with HSBC retaining the remaining shares. HSBC planned earlier this year to spin off this group, as well as four other regional private equity businesses, as it attempts to focus more on core operations, Reuters said.

(Reuters) – HSBC has spun off its private equity fund management business in Asia, the first of five such regional deals flagged earlier this year, a source familiar with the matter said.

The private equity group’s management team, led by George Raffini, now hold 80.1 percent of the business and HSBC holds the remainder, the source said.

The Hong-Kong headquartered business, which has some $2.4 billion under management, has been renamed Headland Capital Partners.

HSBC flagged plans to spin off five regional private equity businesses in June, as it and other banks look to divest private equity assets and focus on core operations.

HSBC is still in talks to spin off similar businesses in Britain, the United States, Canada and the Middle East, the source said.

The bank intends to retain around 20 percent in each of the fund management business, a source said at the time of the announcement in June.

Barclays recently agreed a deal to spin off its European mid-market buyouts business, in exchange for a share of future profits.

Lloyds Banking Group has sold its Integrated Finance portfolio and, according to media reports, is in talks to spin off its British focused private equity arm LDC.

HSBC declined to comment. (Reporting by Simon Meads; Editing by Greg Mahlich)