It is not new that the affiliates of Highland Capital Management, a premier investment management firm based in Dallas, is making financial success stories around the world. However, the recent feat of Highland Capital Korea was quite different and raised the eyebrows of everyone with the size of the fund and the premium client. It closed a private equity fund of size $147 million in the case of total capital commitments. Interestingly, it was a healthcare-focused fund anchored by National Pension Service or NPS of South Korea. Read more at bloomberg.com.
The institution was founded in the year 1988, and it is currently valued approximately at $499.8 billion by the industry estimates. The investors who are collaborating in the Highland fund have objectives such as options for co-investment to achieve their strategic goals in different countries such as China, Korea, and the U.S., apart from investment returns. Highland has announced that it is going to work with Stonebridge Capital, a Korean venture capital and equity firm, and it will co-manage the fund. Interestingly, the fund is a landmark for Highland as it marks the first healthcare equity fund in the private sector Asia.
The firm was fully focusing into multi-purpose or direct basis funds until recently. The managing director of the equity group of Highland, Carl Moore, confirmed that the strategy of the fund is clearly aligned to the core capabilities of Highland Capital, and it draws the expertise of the firm in the healthcare sector. He continued that the healthcare is the most prominent sector the company showcases exposure and as many as 50% of its more than 15 years of track record is in private healthcare equities. With the fund, the firm plans to target middle market companies in the healthcare sector of Asia and North America. Read this article at investopedia.com.
As of May 2017, the firm accounts over $1.5 billion assets in healthcare under its management with multiple fund structures and asset classes. The company thinks that the challenges in the U.S. healthcare industry are largely affecting the middle market. At the same time, the improving healthcare access of Asian countries provides better utilization and demand for complex solutions from both consumers and government. All these factors significantly contribute as opportunities to the investors in the healthcare industry.