Associate Director, UK Mid-Market Credit

Location:Greater London

Description

Role Title: Associate Director, UK Mid-Market Credit

Business: Retail Banking and Wealth Management

New or Existing Role: New

Grade: GCB4
Role Purpose
  • Responsible for ensuring the delivery of the strategic execution of Mid-Market Credit platform vision in terms of business development and fund launches

  • Contribute to build and structure global mid-market credit research resources and management of associated investment process

  • Ensure alignment with AMG’s public credit research investment process and a cooperative spirit with this team

  • Close collaboration with global fixed income platform, particularly the public credit research, ABS and macro-economic capabilities

  • Fundamental Credit Approvals on mid-market credit opportunities, including the review of information memorandum and sales documentation, 3rd party due diligence (financial, commercial, legal and tax structuring reports) and other bespoke diligence, and building/ testing assumptions of financial models provided

  • Additional credit research analysis and interaction with financial sponsor, management team and/or CMB origination professionals as needed

  • Direct negotiation with the financial sponsor on tailored debt terms, including covenants, legal structure and pricing

  • Relative value analysis versus industry and comparable loans

  • Ensure ESG framework is considered as part of every Investment Appraisal process.

  • Ongoing review and monitoring of all investments post completion including oversight of any portfolio loans showing signs of stress or distress

  • Support the Origination of transactions within the Mid-Market Credit team. The role is one of a “transactor team” in that they pull together the entire transaction and bring in the specialist knowledge to structure a complex transaction

  • Involvement in marketing actions for internal/external clients

  • Help to promote the Mid-Market Credit capability to sales teams. Help prepare generic or ad-hoc marketing documents. Assist in the production of ad-hoc research papers for marketing purposes. Contribute to training of sales force

  • Contribution to business wins. Internal training programs. Contribution and participation to ad-hoc client events

  • To Support ongoing development of proprietary analytical tools

Key Accountabilities

Impact on Business

  • From a mid-market credit research perspective:
  • To provide Fundamental Credit Approvals and recommendations
  • To contribute effectively to the Mid-Market Credit Research Platform

  • Ensure fundamental credit approvals are in-line with the Mid-Market Credit Research Policy

  • To monitor key performance indicators and financial performance of all portfolio loans managed

  • Definition and implementation of procedures locally

  • In relation to portfolio loans to assess financial needs, condition, and opportunities/risks facing the customer business.

    From an origination perspective:

  • Articulating the addressable market of the fund or funds (i.e. company size; cheque size; leverage range; sector preferences) in order to obtain relevant deal introductions

  • Maintaining contact with portfolio companies (directly and where appropriate, alongside CMB Origination Professionals) to ensure proactive pitching of refinancing options ahead of others

  • Keeping up to date with market developments/deal flow

  • Structure robust credit facilities for the transaction

  • Ensure that robust credit structures are in place that will secure and protect clients invested capital while meeting with the borrowers’ needs. Identify and strengthen weak structures

    From a business perspective:

  • Deliver best in class borrower experience
  • Manage internal and external regulatory and operational requirements

  • Identify and mitigate risks or potential risks to HSBC GAM, including but not limited to credit, fraud, operational, and reputational risk

Customers / Stakeholders

  • Exercise full relationship management strategy on a portfolio of large relationships

  • Cooperate with Products and other Global Businesses to capture as much business as possible

  • Risk, Restriction and Compliance
  • Product, sales and RFP
  • Finance and administration

Leadership & Teamwork

  • To be a team player and supportive of colleagues within the mid-market credit team and across AMG.

  • To provide appropriate supports to the client servicing, sales and marketing teams

  • Identify training needs within the Mid-Market Credit team and address these via coaching and formal training (as appropriate)

Operational Effectiveness & Control

  • To continually manage and reassess the operational and compliance risks associated with the role and inherent in the business, taking account of changing economic or market conditions, legal and regulatory requirements, operating procedures and practices, management restructurings, and the impact of new technology

  • Monitor the consistent application of Group policy covering all regulatory, financial and legal risks.

  • Delivering efficient, accurate and timely processing of client requests and transactions

  • Driving all internal review and/or external regulators’ requirements to ensure they are dealt with in an accurate and timely manner

  • Compliance with and management of sales suitability risks and requirements

  • Ensure all completed borrower and prospecting activity documentation is appropriately completed, approved and stored to provide performance tracking, targeted future sales efforts and compliance with sales and transactional suitability guidelines and requirements

  • Effective use of in-house systems to populate research

  • Management of research priorities
Major Challenges
  • The role holder will be required to deal with sophisticated financial solutions and varying financial needs and credit risks of borrowers engaged in event driven transactions. Therefore the role holder must have a broad knowledge in business operations and knowledge of complex credit structures

  • The role holder will be expected to have connections within and outside of HSBC GAM to maximize business development opportunities

  • To identify opportunities that offer good relative value, taking into account underlying fundamentals and pricing

Role Context
  • Mid-Market Credit is a discreet business in AMG with direct line management through to the Global CIO Private Debt, Fixed Income and Alternatives

  • The target borrower base comprises of mid-market Private Equity firms and top-end corporate businesses with turnover of typically greater than £25 million

  • Leverage the HSBC Commercial Bank, which is currently one of the leading providers of debt to mid-market businesses across a range of jurisdictions

  • Responsibility for analysing suitability of“new” and “new new” money transactions

  • Assuming the senior debt mandate is awarded to AMG, the jobholder will be responsible for having input to the scope of reviewing and reporting on due diligence and working with Panel lawyers in the preparation of all legal and security documentation

Role Dimensions
  • The jobholder will contribute to investment committee recommendations, deal monitoring and origination

  • Initial UK Mid-Market Credit Fund expected to launch with £1bn. Rapid growth expected thereafter with multiple fund launches across a number of geographies within three years

Management of Risk
  • Act in accordance of the Group Operations FIM.

  • The jobholder will ensure the fair treatment of our customers is at the heart of everything we do, both personally and as an organisation

  • The jobholder will also continually reassess the operational risks associated with the role and inherent in the business, taking account of changing economic or market conditions, legal and regulatory requirements, operating procedures and practices, management restructurings, and the impact of new technology. Additionally, they will ensure they effectively manage sales suitability, money laundering, counter terrorist financing, fraud, and reputational risk

  • This will be achieved by ensuring all actions take account of the likelihood of operational risk occurring

  • Also by addressing any areas of concern in conjunction with line management and/or the appropriate department

Observation of Internal Controls

  • The jobholder/s will also adhere to and be able to demonstrate adherence to internal controls. This will be achieved by adherence to all relevant procedures, keeping appropriate records and, where appropriate, by the timely implementation of internal and external audit points, including issues raised by external regulators

  • The jobholder will implement the Group compliance policy by containing compliance risk in liaison with Global Head of Compliance, Global Compliance Officer, Area Compliance Officer or Local Compliance Officer. The term ‘compliance’ embraces all relevant financial services laws, rules and codes with which the business has to comply

  • This will be achieved by adhering to all relevant processes/procedures and by liaising with Compliance department about new business initiatives at the earliest opportunity. Also and when applicable, by ensuring adequate resources are in place and training is provided, fostering a compliance culture and optimising relations with regulators
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