The Dallas based investment management firm Highland Capital Management (HCM) has set its sights firmly on healthcare with a huge investment commitment. According to a news report that appeared on Deal Street Asia on May 14, 2017, Highland Capital through its Asian affiliate Highland Capital Management Korea Ltd has committed a $147 million to a healthcare focused private equity fund. The anchor investor in the deal is the National Pension Service (NPS) of South Korea. The Korean pension fund was established in 1988 and is valued at about $500 billion. The Sovereign Wealth Fund Institute corpus for NPS stands at $465 billion. Besides the anticipated high returns, the investors drawn into the deal are primarily healthcare sector oriented.
The fund will be co-managed by a Korean equity fund and venture capital firm, Stonebridge Capital. The firm has a working agreement with Highland Capital. The much awaited unveiling has finally set in motion, Highland Capital Management’s first healthcare oriented private equity fund in the Asian continent. The fund is expected to boost Asia investor participation away from the traditional direct basis and multi-purpose funds. The North American middle market healthcare companies are also targeted by the fund. Speaking after closing the deal, the MD and Co-Principle of Highland private equity group, Mr. Carl Moore said health care is Highland’s single largest industry exposure. A report released by Highland on May 2017 indicates that the firm has over $1.5 billion in healthcare assets under management (AUM).
The assets span various fund structures and asset classes. With regards to aggregation, Highland Capital boasts $15 billion AUM targeted at a number of credit strategies, including credit hedge funds, distressed, collateralized loan obligations (CLO’s), special situation private equity and long only funds and separate accounts. According to Globenewswire, HCM was established in 1993 by James Dondero and Mark Okada. Today, the firm’s has close to $20 billion in AUM. The clients that regularly do business with Highland include financial institutions, endowments, public pension plans, High net worth persons, governments, fund of funds and foundations. The SEC registered investment advisor maintains a global presence with offices in 4 countries.