HSBC Asset Management is taking a minority stake in U.S.-based ESG, diversity and inclusion consulting firm Radiant ESG, a spokesman confirmed.
The actual size of the stake was not disclosed, but HSBC AM will own a significant economic interest in the firm, holding up to 33% over time, the spokesman said.
With HSBC's backing, the firm will be renamed RadiantESG Global Investors. It is a female-owned, independent manager focused on next-generation ESG investment opportunities for institutional and wealth management clients.
RadiantESG was co-founded by Heidi Ridley and Kathryn McDonald. Ms. Ridley was CEO and Ms. McDonald was head of sustainable investing at Rosenberg Equities, part of AXA Investment Managers. They left last year.
The RadiantESG executives intend to launch two investment strategies later this year, addressing shifts in demographics and growing demand for more sustainable investment solutions. They will look to grow the team over the year and will also look for another strategic partner to help with infrastructure and distribution in the U.S. and key markets, a news release by HSBC AM said.
"The essence of true global leadership is to change the status quo and this partnership is a perfect example of a direct social impact investment, demonstrating our commitment to furthering diversity in the asset management industry," Nicolas Moreau, CEO at HSBC AM, said in the release. "When investing is combined with a team built upon diversity, inclusion and entrepreneurism, truly great outcomes are possible for our clients."
Last year HSBC AM and climate-change advice and investment firm Pollination launched a joint venture, HSBC Pollination Climate Asset Management.
