(Removes fourth paragraph as Viking Moorings is not owned by
the HSBC private equity division being sold, and in the third
last paragraph clarifies that HSBC Specialist Investments is one
of the five management buyouts referred to in the first
* Five separate private equity management buyouts on cards
* Infrastructure/real estate arm to be sold to mgmt in 2010
(Adds details on private equity businesses, background)
By Simon Meads
LONDON, June 4 British bank HSBC (HSBA.L) is in
talks that could lead to five separate management buyouts of its
private equity fund management businesses, it said on Friday, as
banks go back to focusing on core operations.
Europe's biggest bank said talks are expected to lead to
spin-offs of its private equity fund management businesses in
Hong Kong, Britain, the United States, Canada and the Middle
HSBC's regional private equity businesses manage $8.8
billion of assets and focus on supporting management buyouts in
Britain, technology investments in Asia, mid-market private
equity and mezzanine deals in the U.S. and management buyouts
and providing capital for growing businesses in Africa.
HSBC intends to retain its investments of about 20 percent
of the private equity businesses, a spokesman said.
HSBC spun off its bigger European buyouts business in 2003,
retaining a minority stake in the firm which subsequently became
Montagu Private Equity.
Tougher regulation of the banking industry is leading banks
to pare back non core activities, such as private equity
investing, to focus on core businesses.
The announcement from HSBC follows plans from Barclays
(BARC.L) to spin off its mid-market buyouts arm this summer
ahead of a planned fundraising by the private equity business
later in the year. Royal Bank of Scotland (RBS.L) is also in
talks to sell its European and U.S. private equity funds
In a separate statement, independently listed vehicle HSBC
Infrastructure (HICL.L) said the bank had agreed terms to spin
off HSBC Specialist Investments, the British private equity
division, which is one of the five management buyouts currently
being sold, and which advises it on investments.
The deal is expected to be completed by the end of 2010 and
will see HSBC retain a substantial minority stake in the
HSBC Infrastructure said it is in discussions to ensure that
its operational relationship with HSBC Specialist Investments
continues. It said it had been reassured that steps are being
taken to secure the necessary consents and regulatory approvals.
(Additional reporting by Steve Slater; Editing by Sharon
Lindores and David Cowell)