Highland Capital Management, based out of Dallas, Texas, is a thriving investment firm. Along with their affiliates, their total assets under management total roughly $15.4 billion. The company was founded in 1993 by Mark Okada and James Dondero and has grown to become one of the biggest and most experienced alternative credit managers around the world. Highland focuses mainly on credit hedge funds, separate accounts, long only funds, distressed private equity and special situation equity. The company also offers some alternative investments which include emerging markets and natural resources. They offer their plans through pension plans, endowments, foundations, financial institutions and high net worth individuals. Read more at Biz Journals about Highland Capital.
More recently, over the past summer, Highland Capital Management, with the help of their affiliate Highland Capital Management Korea Ltd., closed out a private equity fund that was healthcare based with $147 million in capital commitments. The anchor for the fund is South Korea’s National Pension Service. The objectives are all specific and within the healthcare industry. The fund will be co-managed by Stonebridge Capital, a private equity and venture capital firm based in Korea.
This will be Highland Capital Management’s first venture into the healthcare based private equity market in Asia. There has been an increase from Asian investors when it comes to this sector over the past few years, generally most investments were done directly or through a multi-purpose fund. The main targets will be the middle market healthcare companies that are located in both Asia and North America. At the point of the announcement, summer of 2017, Highland reported that they had over $1.5 billion in healthcare assets that they were managing. Read this article at PR Newswire.
Highland already has offices in a number of places including New York, Singapore, Sao Paolo, and Seoul, so the move to Korea wasn’t a stretch. While they spend a lot of time focusing on the American market, Highland Capital Management has been exploring foreign markets. With the US healthcare industry facing disruptive forces, this affects the market greatly. With the increased access to healthcare services in Asia, there is a more complex and greater demand in these areas.