Why Highland Capital Management Entered The South Korean Investing Industry

Highland Capital Management, L.P. is an investment advisory firm that is registered with the Securities and Trade Commission. It is based in Dallas, Texas and now manages almost $15.4 billion in assets under management. Highland Capital Management is a global company as in addition to its Dallas office it has offices in New York, Singapore, Sao Paulo, and Seoul.

The fund managers at Highland Capital Management and its subsidiaries are focused on providing funds made up of alternative assets such as credit hedge funds, distressed private equity, emerging market funds, natural resources, currency, and collateralized loan obligations. This last asset class was one that the company pioneered in its early years and is still an industry leader in. Highland Capital Management also enjoys a diversified client base as its funds are used by many types of people and institutions such as corporations, pension funds, endowments, fund of funds, and high net-worth individuals who are looking to diversify their assets.

It was in 1993 that this company was founded by two business partners, James Dondero and Mark Okada, along with Protective Life Insurance Company. by the early 2000’s Dondero and Okada had purchased Protective Life’s interest in the company and so are now the sole owners of it. Their success had led to the company being recognized as one of the leaders of the global alternative credit managing industry.

It was in May 2017 that the company’s subsidiary, Highland Capital Management Korea Ltd. created a private equity fund in South Korea that is focused on the healthcare industry. At the start, the main investor in this fund is South Korea’s National Pension Service which provided $147 in capital commitments. The fund will be co-managed with a Korean private equity firm called Stonebridge Capital.

This fund was created in order to give South Koreans a way to invest in the healthcare industries of South Korea, China, and the United States. Each of these countries increasingly have older demographics which means that healthcare will inevitably make up a larger and larger part of the GDP. This fund will provide South Koreans with a great way to focus on the healthcare industry as part of their overall portfolio strategy.

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