Investment Banking, Alternative Funds, And Highland Capital Management

Today’s investment banks are important both for investors who want to place their money in a fund that offers them more interest and better fruits for their labors, and for businesses who need the extra capital that investor funds can afford them. Most of the time you think of stocks, bonds and mutual funds as being the key investments, but there are a lot of other alternative funds that investors may look into to add more risk or diversify their own portfolios. Most investors want their money placed in business sectors that are on the rise, or where the markets are always going to have a strong demand.

One company who has specialized in alternative fund investments is Highland Capital Management, based in Dallas TX but has offices all around the world. Highland has practiced sound investment practices focused on offsetting risky investments with safer ones, and they’re employee-owned and offer solutions with the best interests of their investors and not their products. One of type of fund that Highland Capital has used is the Collateralized Loan Obligation, a fund that takes a mix of high-risk investor funds and low-risk ones, categorizes them in a set of classes which also takes into account how risky loaning to a certain borrower may be, and places them in a pool. This has been done to increase capital available to businesses that need an increased loan amount. The founder of Highland Capital Management, and one of the first proponents of a CLO, is James Dondero on

Dondero has over 30 years of investment managing experience, dating all the way back to when he graduated from the University of Virginia. His first investment banking stint happened at American Express, where he managed more than $1 billion in alternative and fixed income funds. His reputation earned him a jump into an executive position at Protective Life GIC, and with GIC being nothing more than an idea when he joined, Dondero made it into a $2 billion asset holder in just 5 years. While Highland Capital wasn’t officially named such when it was first founded, Dondero along with Mark Okada took a portion of shares from GIC and used them to start up PAMCO, which would eventually become the independent Highland Capital Management Company. Since then, Highland Capital has taken off building up a portfolio of over $21 billion in investments.

Leave a Reply