HSBC in Advanced Talks to Sell German Fund Unit to BlackFin Capital Partners

HSBC Holdings is reportedly in the final stages of negotiations to divest its German fund administration business to private equity firm BlackFin Capital Partners, according to Bloomberg. The deal, which involves HSBC’s Inka unit, could be finalized in the coming weeks, per sources familiar with the matter cited by Bloomberg.

The Inka unit currently oversees approximately €400 billion ($436 billion) in assets under administration. BlackFin Capital Partners is working to finalize the terms of the acquisition, with discussions at an advanced stage, according to Bloomberg’s report. Sources close to the matter, who requested anonymity due to the private nature of the talks, indicated that a definitive agreement may be reached soon.

In a related development, BNP Paribas SA is also in discussions regarding a potential acquisition of HSBC’s German custodian business, Bloomberg reported. While no binding agreements have been established, additional bidders may emerge for the custodian operations, as HSBC continues to explore options for its European assets.

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The potential sale of these businesses aligns with HSBC’s broader strategic shift, which has seen the bank streamline its European and North American operations to focus on core markets in Asia. Last year, BNP Paribas agreed to acquire HSBC’s private banking business in Germany, further signaling HSBC’s retreat from certain European segments.

Bloomberg previously reported that both the Inka fund administration unit and the German custodian business were marketed to potential buyers, with the combined platforms expected to attract offers worth several hundred million euros.

Source: Bloomberg