A group of managers in HSBC Capital (Canada)’s private equity group has bought out the business and renamed it Fulcrum Capital Partners.
The division changing hands manages private equity funds and offers mezzanine debt, and has about $700-million in assets and capital commitments under management. Although it will have new owners going forward, it will continue its relationship with HSBC Bank Canada by continuing to provide fund management services. The group has about 20 employees.
While the announcement comes at a time when HSBC is unloading assets around the world, including its Canadian retail brokerage, people in the industry say this deal has been in the works for some time.
This also isn’t the first management buyout at HSBC. Last year the management team at its Asian private equity group bought the business out and renamed it Headland Capital Partners. In that deal, Headland took ownership of 80.1 per cent of the company while HSBC kept 19.9 per cent.
The private equity group is based out of Vancouver but also has an office in Toronto.