Highland Capital Management is a financial services firm based in Dallas, Texas that specializes in credit management. The firm originally formed in the year 1990 when James Dondero and Mark Okada formed a joint company known as Protective Life Insurance Corporation. This company originally specialized in working with fixed income markets which included the management of secured bank loans. By the year of 1993, this company evolved into Protective Asset Management Company which was registered by the SEC as an investment advisory firm. The company was owned by 60% of Protective Life and 40% by both Dondero and Okada. By the year 1997, Dondero and Okada purchased the stake of Protective Life in PAMCO. They also established Ranger Asset Management which would become an independent registered advisor.
Shortly after Ranger Asset Management was formed, the company would later become Highland Capital Management. In the year 2000, James Dondero and Mark Okada put together the first commingled bank loan fund which would be established as an alternative investment 40 Act option. By the year 2004, Highland Capital Management would expand its product line as it would begin entering the mutual fund markets. The firm acquired a couple of floating rate funds from Columbia Asset Management. As part of its overall expansion, Highland Capital Management would establish new office locations in Singapore and Seoul, South Korea in the late 2000’s.
Throughout its existence, Highland Capital Management has continued to expand its product line. As of now, the firm is among the leaders in providing collateralized loan obligations. It first developed this type of product in 1996 as an alternative to traditional banks. Therefore, investors who are looking for this type of security can get it from Highland Capital instead of a regular commercial bank. During the last 20 years, Highland Capital Management has put together and managed over 39 CLO’s which amounted to a total of $32 billion in assets. As a result, Highland Capital Management is now the largest CLO manager in the entire world.
Nowadays, Highland Capital Management is an independently owned investment firm that has over two decades of experience in managing finance products for both retail and institutional investors. The firm is among the most rapidly growing finance companies in the world. It has over 180 employees throughout the world. Highland Capital Management is headquartered in Dallas, Texas and has a number of offices throughout the world. There are office locations in Singapore, Sao Paulo, Brazil, Seoul, South Korea, and New York City. Highland has a very diverse client base which includes investors of pension plans, foundations, corporations, financial institutions, government entities and high net worth individuals. The firm focuses on providing value to many investors by offering a wide range of products as well as protecting the capital of investors.