HSBC spins off private equity business in Asia

Buyout anticipates regulatory changes which might limit ownership of hedge funds

The management team at HSBC Private Equity (Asia), the private equity arm of HSBC Group, has bought out the private equity (PE) business from the bank and has renamed it Headland Capital Partners.

The buyout comes as banks around the world face regulatory changes that could include limits on ownership of hedge funds and private-equity funds or an increase in costs for holding such assets.

Headland's management team now owns 80.1% of the company, while HSBC retains a 19.9% stake. The complete details of the transaction were not disclosed.

HSBC Private Equity, now Headlands, has $2.4bn under management.

Headland, run by George Raffini, has invested in more than 100 companies, mostly based in China, including TPK Holding, the recently listed maker of touch screens for Apple's iPad and iPhone, and Bosideng International, a winter clothing company.

Raffini said Headland's team looks forward to continuing its close partnership with portfolio companies and delivering attractive returns to its funds' investors.

"Initially, 16 colleagues are joining me as owners of our business," Raffini said.