BNP Paribas’ Securities Services has signed an agreement to integrate HSBC’s hedge fund administration business.
The mandate has been signed in an effort to strengthen BNP Paribas’ offerings for liquid alternatives and hedge fund managers.
The transfer of services from HSBC to BNP Paribas will be offered to 25 global clients and will involve the integration of certain employees within BNP Paribas’ teams.
The agreement covers HSBC’s hedge fund administration business, which will be transferred to BNP Paribas’ entities in several markets, including Hong Kong SAR, Singapore, Ireland and Luxembourg.
BNP Paribas’ clients will have access to services such as fund administration, depositary, custody, cash and foreign exchange as well as prime brokerage solutions.
The implementation of the agreement is expected to complete by the end of 2024.
Philippe Benoit, head of strategic business development and transformation at BNP Paribas Securities Services, comments: “The liquid alternatives and hedge funds sector is a focus area for BNP Paribas. We have steadily invested in this field, with a strong emphasis on our integrated and innovative banking solution range across BNP Paribas’ Securities Services and Global Markets business lines.
“The integration of HSBC’s hedge fund administration business is an opportunity to reinforce our position to meet the ever-evolving needs of hedge funds and grow alongside them through sustainable partnerships.”
An HSBC spokesperson told Asset Servicing Times: “While HSBC’s Securities Services business has taken the decision to exit hedge fund administration services, the alternatives sector continues to be a focus of growth for us, including private assets fund administration and prime services, both of which have seen a strong performance over the course of the year.
"The agreement we have entered into with BNP Paribas will enable the 25 institutional clients, affected by this decision, to transfer their hedge fund administration requirements to BNP Paribas.”
