Just recently, a Korean affiliate of the Dallas Highland Capital Management, was able to close a deal on healthcare-based private equity totaling to $ 147 million in monetary commitments.
Gaining Private Equity
The National Pension Service (NPS) of South Korea is the main investor of the capital commitment. Since its beginning in 1988, it was worth KRW 565 trillion ($488.8 billion), while another institute called the Sovereign Wealth Fund calculated their value at $465.13 billion.
The investors who committed in the Highland funding, along with NPS Korea had their goals in mind about healthcare improvements aside from their returns. These include: being able to have other opportunities for investments in South Korea, China and US. Read more about Highland Capital at prnewswire.com.
Highland Capital hopes to expand in the next quarter, by forming alliances with Stonebridge Capital. Stonebridge Capital is Korea-based private equity, as well as a venture capital firm. Together, Stonebridge and Highland capital will manage the funds set for the Asia expansion. Although this is the pioneer private equity funding related to healthcare by Highland Capital, there is a profound interest from the investors within the two years of this venture.
Improving Healthcare through Investors
According to Carl Moore, the managing director and one of the heads of Highland Capital’s private equity group, the funding is ultimately contributing to the firm’s strength in the healthcare sector. Since Highland Capital is known for their expertise in the health industry with half of their partnerships related to healthcare businesses, it is imperative that this private equity funding will bring in profits for the investors and improvements in South Korea, and eventually Asia’s healthcare landscape. During the 2nd quarter of 2017, Highland Capital was able to report $1.5 Billion assets in healthcare along different asset classes and fund structures. Visit highlandcap.com to know more.
The managing director of Highland Capital, Matt Jameson, also stated that healthcare in the United States are facing several challenges that make it difficult for the companies in the middle market. According to him, the demographic statistics show that there is a greater need to utilize more middle market services due to the varying consumer and government demands. He hopes that these demands will also provide opportunities to healthcare investors to expand their businesses and help improve the industry.