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Highland Capital healthcare PE fund raises $147 mln

Highland Capital Management Korea Ltd, an affiliate of Highland Capital Management LP, said May 12 it closed a $147 million healthcare-focused private equity fund. The fund will invest in middle market healthcare companies in North America and Asia. South Korea’s National Pension Service (NPS) served as the anchor investor. Stonebridge Capital, a Korean private equity and venture capital firm, will co-manage the fund. Highland said the PE fund is the first healthcare sector-specific undertaking in Asia.


DALLAS, May 12, 2017 /PRNewswire/ — Highland Capital Management Korea Ltd., an affiliate of Dallas-based alternative investment management firm Highland Capital Management, L.P. (“Highland”), announced today the successful closing of a healthcare-focused private equity fund, with approximately $147 million of total capital commitments. South Korea’s National Pension Service (NPS) served as the anchor investor.
Highland’s private equity fund is its first healthcare sector-specific undertaking in Asia. While Asian investors have shown increased interest in the sector during the past two years, most investments made to date were on a direct basis or via multi-purpose funds. Investors participating in the Highland fund with NPS Korea have specific objectives within the healthcare space in addition to investment returns. This includes access to opportunities for co-investment in order to serve their strategic objectives in Korea, China and the United States.
Highland’s expertise investing in healthcare spans almost three decades. In Asia, Highland will work with Stonebridge Capital, a Korean private equity and venture capital firm, which will co-manage the fund.
“The fund’s strategy is well aligned with Highland’s core capabilities, drawing on the firm’s deep expertise in the healthcare sector,” said Carl Moore, managing director and co-head of Highland’s private equity group. “Healthcare is the firm’s largest industry exposure and roughly half of our more than 15-year track record in private equity relates to healthcare companies.”
The fund will primarily invest in middle market healthcare companies in North America and Asia.
“The healthcare industry in the U.S. faces a number of disruptive forces that acutely affect companies in the middle market,” said Matt Jameson, managing director and co-head of private equity. “The  demographic ‘graying’ of America and increased access to healthcare services in Asia are driving greater utilization levels and more complex consumer and government demands on the sector. These factors combined with the evolution to value-based reimbursement models create significant opportunities for healthcare investors.”
Highland has more than $1.5 billion1 in healthcare assets under management spanning multiple asset classes and fund structures. Michael Gregory, head of healthcare at Highland, oversees a team of dedicated healthcare investment professionals with in-depth sub-sector expertise who work closely with the firm’s private equity team throughout the investment process.
Highland has invested $1.4 billion2 in capital across its private equity business. The firm takes an operationally-focused approach to private equity, employing an in-house portfolio value creation team comprised of former strategy consultants and operators.
About Highland Capital Management, L.P.
Highland Capital Management, L.P. is an SEC-registered investment adviser that, together with its affiliates, has approximately $15 billion of assets under management. Founded in 1993 by Jim Dondero and Mark Okada, Highland is one of the largest and most experienced global alternative credit managers. Highland specializes in credit strategies, such as credit hedge funds, long only funds and separate accounts, distressed and special situation private equity and collateralized loan obligations (CLOs). Highland also offers alternative investments, including emerging markets, long/short equities and natural resources. Highland’s diversified client base includes public pension plans, foundations, endowments, corporations, financial institutions, fund of funds, governments and high net-worth individuals. Highland is headquartered in Dallas, Texas and maintains offices in New York, Sao Paolo, Singapore and Seoul.