HSBC Holdings Plc is reorganizing its capital markets and corporate advisory divisions into a new unified business, aiming to strengthen its position in the rapidly growing private credit market, the London-based bank announced Friday. This move confirms an earlier report by Bloomberg News.
The newly formed Capital Markets and Advisory (CMA) group will consolidate HSBC’s global financing and investment banking activities under a single leadership team. Michael Roberts, HSBC’s Chief Executive of Corporate and Institutional Banking, described the reorganization as “a model for the future” that will help the bank better serve clients and seize growth opportunities in private credit, a $1.6 trillion global asset class.
Private credit has become increasingly attractive to lenders like HSBC amid rising demand from borrowers seeking safer financing alternatives, especially following trade disruptions caused by the Trump administration’s policies. Higher management fees also add to its appeal. Rival Standard Chartered recently announced plans to expand its private markets team, predicting assets under management in the sector could near $20 trillion by 2029.
Under the new CMA structure, HSBC will bring together its debt capital markets, leveraged and acquisition finance, and private credit operations alongside corporate finance and strategic advisory services. Adam Bagshaw, Global Head of Investment Banking, will lead the new group with a focus on growing HSBC’s private credit business and strengthening its presence in Asia and the Middle East.
This reorganization follows a major overhaul initiated last year by CEO Georges Elhedery, which included shutting down mergers and acquisitions and equity underwriting operations in key markets like the US and Europe, alongside senior executive departures. The prior restructuring is expected to save HSBC around $1.5 billion in efficiency costs.
The CMA reorganization marks one of the final steps in Elhedery’s restructuring plan, paving the way for potential new hires once the transition stabilizes, sources familiar with the matter told Bloomberg. Any recruitment efforts will likely target private credit expertise and regions such as Asia and the Middle East.
Ian Dorrington, Global Head of Leveraged and Acquisition Finance, who joined HSBC in 2023 from Deutsche Bank, will lead the bank’s push into private credit, according to an insider.
