Highland Capital Management, L.P., a Dallas-based investment management firm, which together with its affiliates has approximately $19 billion in assets under management, announced the company has launched its first European regulated fund. Highland will act as the sub-advisor of the BB Highland Floating Rate Fund, which it has launched as an Irish Qualified Investor Fund (QIF) in partnership with BB DTVM, the asset management arm of Banco do Brasil.
The Fund is designed to replicate the Highland Floating Rate Opportunities Fund by investing primarily in U.S. bank loans and other floating rate products that seek to generate yield in a rising interest rate environment. As of June 30, 2014, the Highland Floating Rate Opportunities Fund was ranked as the number one Bank Loan Fund by Morningstar based on total return for the one, three and five year periods among 213, 168 and 111 funds, respectively. The Fund Class Z also won the 2014 Lipper Award for “Best Loan Participation Fund over Three Years.”
“As international investors continue their search for yield, alpha generating bank loan funds are becoming an increasingly popular solution,” said Highland’s Co-Founder and Chief Investment Officer Mark Okada, who will serve as the lead portfolio manager of the fund. “We’re excited to be able to bring the success of the Highland Floating Rate Opportunities Fund to a much wider base of international investors.”
The Fund will target an investor base comprised of investors from Europe, Latin America and Asia. It is designed to provide foreign investors with access to the U.S. bank loan market through one of the largest and most experienced global senior loan managers. As sub-advisor of the fund, Highland will have discretion and authority over all investment decisions. The Fund will offer bi-monthly liquidity.
Highland Capital Management is an SEC-registered investment adviser which, together with its affiliates, has approximately $19 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’s strategies include collateralized loan obligations (CLOs), high yield bonds, distressed credit, public and private equities, structured products and natural resources.