Latest news highlights in the world of private equity

HSBC Asset Management Launches New Private Equity Strategy

HSBC Asset Management has taken a significant step forward in its investment strategy, announcing the launch of a new private equity fund aimed at high-net-worth investors. The fund, seeded with capital from HSBC's insurance arm, expands HSBC Asset Management's alternatives platform beyond its traditional institutional client base.

Meanwhile, in the world of pharmaceuticals, STADA Arzneimittel, a company that HSBC Asset Management already holds positions in, has been making headlines. After being acquired by Bain Capital and Cinven in 2017, the company has undergone a transformation, becoming a diversified healthcare company with a global workforce of over 11,600 people.

Under the ownership of Bain Capital and Cinven, STADA Arzneimittel's revenues surpassed €4bn, and its EBITDA more than doubled. The company's focus includes consumer healthcare, generics, and specialty pharmaceuticals, and it has seen its net sales grow at a compound annual rate of 9%.

The transaction, initially completed in 2017, is expected to be finalised in early 2026, subject to regulatory approvals. Bain Capital will acquire a majority stake in STADA Arzneimittel, while the Strüngmann brothers retain minority shares in the German pharmaceutical group.

Elsewhere in the industry, Apollo Global Management is preparing to launch a $5 billion sports investment vehicle. The strategy of Apollo's sports investment vehicle will combine lending to sports clubs and leagues with equity stakes in teams. Apollo Global Management, which manages more than $800 billion in assets, will make its first permanent capital allocation to sports through this venture.

To oversee this initiative, Apollo Global Management will hire a team. Under the ownership of Bain Capital and Cinven, STADA Arzneimittel also hired a team to manage its operations, which led to its successful transformation.

It's worth noting that HSBC Asset Management's fund already holds positions in around 10,000 companies with a net asset value of $477 million. The fund launched by HSBC Asset Management invests in secondary deals and co-investments sourced from a range of general partners.

In conclusion, the world of finance and pharmaceuticals continues to see significant changes, with HSBC Asset Management and Apollo Global Management leading the charge in their respective industries. The upcoming year promises to be an exciting one, with the completion of the STADA Arzneimittel transaction and the launch of Apollo Global Management's sports investment vehicle.