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Background of Highland Capital Management

Highland Capital Management has joined forces with South Korea’s NPS to launch a $147 million healthcare-oriented equity fund. Through its affiliate, Highland Capital Management Korea Ltd, Dallas-based alternative investment management firm has committed $147 million to a healthcare-focused private equity fund. Since its inception in 1988, South Korea’s NPS has amassed $499.8 billion while its corpus stands at $465.13 billion. Besides return on investment, investors participating in the Highland fund have specific health objectives. It includes access to opportunities for co-investment and consolidating their presence in China, Korea, and the United States.

Highland Capital Management will administer the $147 million healthcare-oriented private equity fund through Stonebridge Capital, a Korean venture capital firm. In fact, this is Highland’s first healthcare-oriented funding initiative in Asia. Over the past two years, Asian investors have shown increased interest in investing in the healthcare-oriented initiatives. However, most of the today’s investments are made on a direct basis or via multi-purpose funds. Interestingly, the fund’s strategy aligns with Highland’s core capabilities; thus leveraging the firm’s deep expertise in the healthcare industry. Healthcare is one of Highland’s largest industry exposures. In fact, half of its more than 15-year track record relates to healthcare-oriented equity fund.

Highland Capital Management’s fund targets companies in the middle-market throughout Asia and North America. As of May 2017, Highland was managing $1.5 billion worth of healthcare assets. The firm’s managing director and co-head of private equity, Matt Jameson, acknowledges that the U.S. healthcare sector faces several disruptive forces that adversely affect the middle-market companies. Besides, the increased access to health services in Asia and the demographic “graying” of America are driving more complex consumer demands and greater utilization levels in the healthcare sector. By combining these factors with the evolution of value-based reimbursement models, you increase opportunities in the healthcare industry significantly. Highland has approximately $15 billion worth of healthcare assets under management. The firm specializes in services such as special situation private equity, credit hedge funds, separate accounts and long-only funds, and collateralized loan obligations. Besides, the Highland creates access to alternative investments in the form of natural resources, emerging markets, and long and short equities.

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