Fund to buy unlisted firms

Fund to buy unlisted firms

HONG KONG (AFP): HSBC Asset Management Hong Kong Ltd. said yesterday it is launching a US$250 million fund that will invest in unlisted companies in China and Southeast Asia.

Known as the HSBC Private Equity Fund intends to acquire minority stakes in medium-sized companies with a market value of more than $10 million, and which, while unlisted, are planning to be listed on stock markets.

"It will be fundamental to the investment policy of the fund that there is a clearly defined exit strategy for the realization of investments at the time the investments are made," the fund management firm said in a statement.

HSBC Asset Management is a unit of Hongkong Bank parent HSBC Holdings plc. Its new fund will be handled through its HSBC Private Equity Management Ltd. subsidiary, which already has seven funds totaling $500 million.