In May 2017 Highland Capital Management Korea closed an equity fund worth $147 million in capital commitments. The fund which is private and healthcare focused has the South Korea Pension Service as the anchor investor. The National Pension Service was created in 1988 and is valued at $499.8 billion. Highland Capital Management Korea is a subsidiary of investment management firm High Capital Management L.P., which is based in Dallas, Texas.
Investors in the equity fund have an objective of investing in the South Korean healthcare space. They want to access co-investment opportunities as well as to serve their strategic goals in China, the US and Korea. In Asia, Highland Capital is partnering with Stonebridge Capital, a private venture and equity firm based in Korea, which help them in managing the fund. The fund is Highland Capital’s first private equity fund in the Asian healthcare industry. Asian investors have been showing interest in the healthcare industry but previous investments were made via multi-purpose funds or on a direct basis.
Carl Moore, Highland’s managing director, says the funds strategy is in line with Highland’s core competencies and expertise in the healthcare industry. Mr. Moore states that healthcare is the company’s exposure and during the company’s 15 years of existence more than half of their funds were related to firms in the healthcare industry.
The new fund will primarily target middle market companies in the Asian and North American healthcare space. By May 2017, Highland had healthcare assets worth $1.5 billion under management. The assets span multiple fund structures and asset classes. Matt Jameson another managing director at Highland Capital notes that the US healthcare industry is under pressure from multiple disruptive forces which are affecting middle market companies. Additionally, the increased number of old people in both Asia and America is leading to higher utilization levels of healthcare facilities. Consumers and governments are also demanding for more complex products that cater for new ailments. These factors have created significant investment prospects for healthcare investors.
Highland is an investment company with over $15 billion in assets under management. It specializes in credit hedge funds, collateralized loan obligations and private equity. The company also offers alternative investments in natural resources and emerging markets.
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