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Principal Investments
Delivering strategic value through partnership
Overview
Direct Principal Investments is the global direct principal investing arm of HSBC.
Our dedicated team invests in transactions including leveraged buyouts, expansion and growth capital, restructurings, structured equity and pre-IPO capital as a minority shareholder. Depending on the transaction, we play the role of lead investor or co-investor with other partners.
Our global footprint allows us to provide equity funding and financing solutions to clients and investing partners across Asia, Africa, Europe, the Middle East and Latin America. Our typical investment size is USD25 million to USD75 million in equity and equity-linked instruments.
Our philosophy is to build a first-class reputation for partnering, innovation and delivery.
Selected transactions
Amtech
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Location: UK |
Amtech is a market-leading building services software and solutions group, specialising in the provision of electrical design, certification, estimating and accounting products and services. HSBC supported the management-led buyout of Amtech in July 2006 and the subsequent acquisitions of Estimation Ltd in May 2007, NES in May 2008 and TSI Luckins in October 2008. HSBC realised its investment in Amtech in March 2010 via a secondary buyout backed by Primary Capital.
Avitel Post Studioz
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Location: India |
Headquartered in Mumbai, India, with a significant international presence, Avitel Post Studioz Limited (Avitel) is a fast-growing media technology company, offering a comprehensive and innovative range of post-production services, such as film archiving and restoration, stereoscopy and animation, among others. Proceeds from our investment were used to finance the company's international growth and expansion plans. Leveraging its 35-year history of blending strong technical skills with an understanding of the media sector's needs, Avitel has developed proprietary capabilities that allow it to perform services at an industry-leading quality, pace and cost level.
Better Place
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Location: US |
Founded in 2007, Better Place provides recharging services to electric vehicles through battery switch stations and charge spots. Through its switchable-battery technology and subscription-based business model funded through private sector investment, Better Place gives electric vehicles unlimited range and allows mass adoption of zero-emission vehicles. The investment will enable Better Place to complete its key development phase and fund infrastructure roll-out for its initial launch markets of Israel and Denmark.
Bloom Energy
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Location: US |
Founded in 2001, Bloom Energy produces the world's first commercial solid oxide fuel cell, which provides low-cost, low-emission, high-reliability, on-site distributed electricity generation. On a total cost comparison, Bloom Energy's solution is projected to be cheaper and more predictable than both alternative generation technologies and electricity provided by the Grid in many markets. Bloom Energy's customer group includes blue chip customers, such as Google, Wal-Mart, Adobe, FedEx, Coca-Cola, Apple and Bank of America.
Britton
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Location: UK |
Britton is one of the largest extrusion and plastic packaging manufacturers in the UK, manufacturing a diverse range of packaging products for the food and beverage, banking, security, logistics, construction, hygiene and medical industries from three sites around the UK. HSBC supported the buyout of Britton in February 2008. HSBC realised its investment in Britton in April 2011 via a secondary buyout backed by Sun Capital.
Chemi & Cotex
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Location: Tanzania |
Established in 1975, Chemi & Cotex is a leading FMCG business in East Africa with headquarters in Dar es Salaam. Chemi & Cotex has a manufacturing hub in Tanzania and distributes its products through a network of 1,200 business partners spread across Tanzania, Kenya, Uganda and South Africa. These distributors are serviced by 8 regional offices, 10 depots, a large fleet of delivery vehicles and over 1,300 employees. HSBC led the buyout of Chemi & Cotex in 2010 in partnership with Satya Capital and Catalyst Principal Partners.
CPA Global
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Location: Jersey |
Founded in 1969, CPA provides intellectual property outsourcing services in 200 jurisdictions globally and is the leader in its core patent renewals business with over 60 per cent market share. In addition to its core patent businesses, CPA's Legal Process Outsourcing business is the leader in its segment and represents growth potential.
CS Logistics
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Location: Hong Kong |
Founded in 1990 and headquartered in Hong Kong, CS Logistics Holdings Ltd is an international integrated logistics services provider, with more than 5,500 personnel in more than 80 worldwide locations. Proceeds from our investment were used to partially finance the acquisition of Allport Group Limited, a leading UK-based logistics service provider and international freight-forwarding company, as well as a strategic partner for over two decades. The company's offerings include supply chain solutions, origin and destination logistics services, international freight forwarding (air and sea), fashion distribution and other logistics services.
Havaş
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Location: Turkey |
Established in 1933 as a state-owned company, Havaş is the leading ground handling services provider in Turkey. Backed by a workforce of c. 3,100 employees, the company provides ground handling services in 18 airports as well as warehousing, passenger transportation and car park services in Turkey. In addition, Havaş currently has partnerships in Turkish Ground Services (TGS), Cyprus Airport Services (CAS) and Northern Hub Services Co (NHS). In March 2010, HSBC acquired a significant minority stake of Havaş from TAV, an existing major shareholder.
J.D. United
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Location: China |
Headquartered in Hong Kong, J.D. United is a leading global apparel manufacturer and designer, with a long history of producing garments for international brands. With almost 20 facilities, the company employs a workforce of over 16,000 across China and Cambodia. J.D. United offers a comprehensive range of high-quality apparel and home textile products, as well as innovative sourcing, design and development capabilities, to top-tier retailers and wholesalers in North America, Europe, Japan and China. J.D. United pursues a flexible business strategy, seeking to provide an effective sourcing solution for international apparel brands and retailers, thereby becoming an indispensable strategic partner.
Kopane Diamond Developments
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Location: Lesotho/UK |
In 2008, HSBC acted as an anchor investor in a share issue of Kopane Diamond Developments (Kopane), a junior diamond mining company with assets in Lesotho. The investment enabled Kopane to progress its detailed feasibility study of the Liqhobong Mine. Subsequently, there was a reverse takeover of Kopane in September 2010 by Firestone Diamonds plc (Firestone), which ultimately resulted in HSBC exiting its investment in Firestone via a secondary share sale on AIM.
New Forests Company Uganda
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Location: Uganda |
HSBC is an anchor equity investor in the New Forests Company Uganda (NFC), a sustainable forestry company with plantations and value-add processing operations in Uganda. NFC is recognised as the largest private sector tree planter in Uganda and plans to develop a vertically integrated forestry business, seeking to focus on all aspects of the value chain. NFC has achieved FSC certification for its Ugandan plantations and has a strong commitment to CSR focusing on education, health, clean water and income generation. NFC will deliver both attractive returns and significant social and environmental benefits.
O3b Networks
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Location: Jersey |
O3b Networks (O3b) is a global telecommunications venture launching satellites to deliver a high-speed broadband alternative to traditional fibre/cable in equatorial emerging markets. HSBC co-invested alongside Google Inc and Liberty Global Inc in 2008. Subsequent equity sponsors include North Bridge Venture Partners, Allen & Company and SES, the world's leading provider of satellite-based broadcasting and telecommunications services. O3b will innovatively use existing satellite technology to increase access and quality of internet services in Africa, India, Latin America, the Middle East and South-East Asia.
TDG
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Location: UK |
TDG is the parent company of Glasgow-based Diagnostic Monitoring Systems, a market leader in condition monitoring products and services for electrical utilities, particularly in emerging markets. HSBC supported the buyout of TDG in January 2008 and the subsequent acquisition of PD Tech Engineering AG in June 2008. TDG was sold to Qualitrol Corporation, a subsidiary of Danaher Corporation, in April 2009.
Viking Moorings
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Location: UK |
Viking Moorings is a market leader in the design, rental and sale of mooring systems for drilling rigs and single hull vessels, operating from offices in Scotland, Norway, Australia and Singapore. Viking was acquired from Inflexion Private Equity and management, who both made significant re-investment into the deal, in July 2009.
Visma
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Location: Norway |
Visma is the leading provider of financial/accounting software and outsourced business processes services to small to medium enterprises (SMEs) and micro (less than 10 employees) businesses in the Nordic region and the Netherlands. HSBC supported Kohlberg Kravis & Roberts with an investment in the management buyout.
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