Highland Capital Management’s South Korean unit has held a final close on approximately $147 million for its first healthcare-focused private equity fund in Asia.
South Korea’s National Pension Service is an anchor investor in the fund, according to a statement.
Highland has been engaged with Korean strategic investors from the last three years to create a healthcare-focused fund, Paul Adkins, managing director of business development at Highland Capital Management told Private Equity International.
Capital from the Stonebridge-Highland Healthcare Private Equity Fund will be used to invest in middle market healthcare companies in North America, South Korea and China. According to Adkins, the fund will use the firm’s global platform to access healthcare deals, in which participating LPs will add considerable capital alongside the fund in the form of co-investments, giving the fund effectively more ability to take much larger positions and even controlling stakes in portfolio companies. Typical investments could be between $10 million to $30 million, with the LPs co-investing between $200 million to $300 million per deal.
South Korean private equity and venture capital firm Stonebridge Capital will co-manage the fund.
Dallas-headquartered Highland has $15 billion in assets under management across structured products, credit, distressed and real estate funds, with over $1.4 billion in private equity. The firm has invested more than $2 billion in the healthcare sector globally and has a deep bench of nine sector specialists, Highland said on its website. Its healthcare investments include Amino, Cornerstone Health Group, Genesis Health Ventures and Epical.
Highland’s investor base includes public pension plans, foundations, endowments, corporations, financial institutions, funds of funds, governments and high net-worth individuals.
The firm has offices in Dallas, New York, São Paulo, Singapore and Seoul.