According to dealstreetasia.com the South Korea-Highland Capital Management, which is an affiliate of a different investment management company Highland Capital Management (Highland), based in Dallas, closed a private equity fund that’s healthcare-focused with a total of $147 million capital commitments. The anchor investor in the fund is NPS (National Pension Service) of South Korea. It started in the year 1988; it’s valued at roughly $499.8 billion (KRW 565 trillion) while the SWF Institute reported their corpus being $465.13 billion.
Investors that are participators of the Highland fund together with NPS Korea have particular goals within the space of health care in addition to the returns of investments. That includes the access to co-investment opportunities to serve their objectives that are strategically in the United States, China, and Korea.
In Asia, Highland is going to be working with Stonebridge Capital, which is a Korean venture capital, and private equity firm that is going to co-manage the fund. The aforementioned is the first private equity fund that’s healthcare-oriented of Highland Capital Management in Asia. While the investors of Asia have been showing interest that’s increasing in the sector in the last two years, most of the investments that have been made until now were through a multi-purpose fund or direct basis.
The primary investment fund targets are going to be healthcare companies of the middle market in Asia and America. As of May 2017, Highland reported healthcare assets of over $1.5 billion under American Utility Management spanning multiple fund structures and asset classes.
Matt Jameson, who is the co-head and managing director of Highland Capital Management private equity said that the U.S health care industry faces some disruptive forces acutely affecting companies that are in the middle market. Health care is the largest industry exposure of the firm and approximately 50 percent of their track record of over 15 years in private equity relate to healthcare companies.
In total, Highland Capital had a $15 billion American Utility Management and is specialized in credit strategies, like collateralized loan obligations and private equity for a special situation, separate accounts and long-only funds, and credit hedge funds.