Highland Capital Management
Corporate brand
UnclaimedA Dallas-based alternative investment manager known for credit strategies, leveraged loans, structured products, and distressed investments.
Last updated August 24, 2026
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Overview
Highland Capital Management was a Dallas-based alternative investment management firm founded in 1993 by James Dondero and Mark Okada. It developed from a specialist credit manager into a diversified investment platform offering hedge funds, mutual funds, exchange-traded funds, closed-end funds, structured investment vehicles, collateralized loan obligation strategies, and separate accounts. Its investment activity centered on leveraged loans, high-yield bonds, structured products, and other credit markets, while the firm also managed strategies involving global public equities and event-driven investments. Highland became particularly associated with bank-loan and floating-rate products. Its managers used credit research and portfolio-management systems to serve institutional investors, investment companies, and high-net-worth clients. The company was credited with developing early software for electronically tracking loan portfolios; the technology was later sold to JPMorgan Chase in 2003. Highland expanded its fund-management business in the mid-2000s, including through the acquisition of Columbia Management Advisors' bank-loan mutual-fund business in 2004 and ING Capital Management in 2005. The latter transaction represented an early move into European distribution and investment management. The firm also pursued distressed and event-driven opportunities. It participated in or was exposed to several corporate reorganizations, including the bankruptcy of Bridge Information Systems and the restructuring of Delphi Corporation. Highland's investment platform later included CLO funds, senior-loan products, global allocation strategies, and ETF products built around research from Hedge Fund Research. Its investment products reached multiple markets, with offices or operations reported in New York, São Paulo, Buenos Aires, Seoul, and Singapore in addition to Dallas. Highland reported approximately $13.9 billion in assets under management in 2018. Its public-market presence included the Highland Floating Rate Opportunities Fund, which traded under the ticker HFRO, as well as mutual funds and exchange-traded products. The firm also expanded beyond investment products when it acquired Cityplace Tower in Dallas in 2018. In October 2019, Highland Capital Management filed for Chapter 11 bankruptcy protection. The bankruptcy and subsequent wind-down marked the end of the firm's operation as an independent, going-concern asset-management brand, although certain funds, assets, and investment-management activities continued through related entities and restructuring processes.
History
Highland Capital Management was established in Dallas in 1993 by James Dondero and Mark Okada. The firm built its early identity around credit investing and the management of leveraged-loan and high-yield portfolios. It also developed software for electronically tracking loan portfolios, an important operational tool for loan managers. Highland sold that software to JPMorgan Chase in 2003. The company broadened its business during the following decade. In April 2004, it entered the mutual-fund market by acquiring Columbia Management Advisors' bank-loan mutual-fund business. It also acquired NexBank in 2004. In April 2005, Highland acquired ING Capital Management, a transaction that expanded its reach into Europe and helped establish a broader international platform. Later operations included offices or activities in New York City, São Paulo, Buenos Aires, Seoul, and Singapore. Highland's investment approach covered public equities, fixed income, leveraged loans, high-yield bonds, structured products, distressed debt, and event-driven strategies. The firm became a significant participant in the floating-rate and bank-loan fund market. Its product range included hedge funds, mutual funds, closed-end funds, exchange-traded funds, structured investment vehicles, CLO funds, and separately managed accounts. Highland Capital Management Fund Advisors, an SEC-registered investment adviser and Highland subsidiary, managed equity, fixed-income, balanced, and exchange-traded products. The firm was involved in a number of high-profile corporate bankruptcies and reorganizations through its distressed-debt investments. Its reported activities included involvement in the 2001 bankruptcy of Bridge Information Systems and work connected with Delphi Corporation's reorganization in December 2006. These activities reflected Highland's strategy of seeking opportunities in stressed and distressed credit markets, but they also exposed the firm and its funds to complex restructuring, valuation, and liquidity risks. Highland continued to introduce investment products. It completed the CLO Value Fund I in February 2010 after launching the vehicle in November 2008 to invest in secondary CLO debt and equity. It launched the Highland/iBoxx Senior Loan ETF in November 2012 and introduced its first European regulated fund through Banco do Brasil in 2014. The BB Highland Floating Rate Fund was structured as an Irish Qualified Investor Fund and was intended to replicate the firm's floating-rate strategy. Highland also launched ETFs based on research from Hedge Fund Research, including global, event-driven, and equity-hedge products. In 2011, Highland moved its Dallas offices from the Galleria area to the Crescent Complex in Uptown Dallas. The firm remained active in local civic and philanthropic initiatives and was a founding benefactor of the George W. Bush Presidential Center. In 2018, Highland reported approximately $13.9 billion in assets under management, launched a UCITS fund focused on CLO debt, and acquired Cityplace Tower in Dallas. The company's later period was defined by financial distress and restructuring. Highland Capital Management filed for Chapter 11 bankruptcy protection in October 2019. The bankruptcy proceedings led to the administration and wind-down of the business and marked the end of Highland as an operating independent asset-management firm in its earlier form. Because the bankruptcy involved multiple funds, subsidiaries, assets, and creditor claims, the Highland name continued to appear in restructuring and fund-related contexts even after the parent firm's principal operations had ended.
- 2019
Chapter 11 bankruptcy filing
[1]Highland Capital Management files for Chapter 11 bankruptcy protection in October, beginning a court-supervised restructuring and wind-down.
- 2018
Expansion of products and Dallas real-estate holdings
[1]Highland launches a UCITS CLO-debt fund, reports approximately $13.9 billion in assets under management, and acquires Cityplace Tower.
- 2014
First European regulated fund launches
[1]Through Banco do Brasil, Highland launches the BB Highland Floating Rate Fund as an Irish Qualified Investor Fund.
- 2012
Highland/iBoxx Senior Loan ETF launches
[1]Highland introduces a senior-loan exchange-traded fund on the New York Stock Exchange.
- 2011
Dallas headquarters moves to the Crescent Complex
[1]Highland relocates its Dallas offices from the Galleria area to the Crescent Complex in Uptown Dallas.
- 2010
CLO Value Fund I is completed
[1]The firm announces completion of the CLO Value Fund I investment vehicle.
- 2008
CLO Value Fund I is launched
[1]Highland launches a fund focused on secondary collateralized loan obligation debt and equity.
- 2006
Participation in Delphi's reorganization
[1]Highland works with Delphi Corporation during its restructuring in December 2006.
- 2005
Acquisition of ING Capital Management
[1]The acquisition expands Highland's investment-management platform and represents its first move into Europe.
- 2004
Expansion into mutual funds
[1]Highland acquires Columbia Management Advisors' bank-loan mutual-fund business and also acquires NexBank.
Products and positioning
A specialist alternative-investment manager focused on credit research, leveraged loans, high-yield bonds, floating-rate assets, structured products, and event-driven opportunities for institutional and qualified investors.
Closed-end fund
Highland Floating Rate Opportunities Fund
A publicly traded closed-end investment vehicle associated with Highland's floating-rate and bank-loan strategy. The fund invested primarily in income-producing floating-rate credit and was listed on the New York Stock Exchange under the ticker HFRO.
Mutual fund
Highland Floating Rate Fund
A mutual-fund strategy focused on floating-rate loans and related credit instruments. It represented Highland's specialization in bank-loan investing and served investors seeking income with lower interest-rate duration than traditional fixed-rate bonds.
Structured-credit fund · 2008
CLO Value Fund I
A vehicle launched in 2008 and completed in 2010 to invest in secondary collateralized loan obligation debt and equity. The fund reflected Highland's use of specialized credit research in structured and distressed markets.
Exchange-traded fund · 2012
Highland/iBoxx Senior Loan ETF
An exchange-traded product introduced in 2012 that provided exposure to senior loans. It extended Highland's bank-loan expertise into an ETF format traded on the New York Stock Exchange.
European regulated fund · 2014
BB Highland Floating Rate Fund
A European regulated floating-rate fund launched through Banco do Brasil in 2014. Structured as an Irish Qualified Investor Fund, it was designed to reproduce the investment approach of Highland's earlier floating-rate opportunities strategy.
Exchange-traded fund
Highland HFR Global ETF
One of Highland's ETFs based on research from Hedge Fund Research. The product provided a global strategy within Highland's broader effort to package alternative-investment research in exchange-traded form.
Exchange-traded fund
Highland HFR Event Driven ETF
An ETF focused on event-driven investment exposures and associated research from Hedge Fund Research. It formed part of Highland's initial group of New York Stock Exchange-listed alternative-strategy ETFs.
Exchange-traded fund
Highland HFR Equity Hedge ETF
An exchange-traded strategy designed around equity-hedge research from Hedge Fund Research. It broadened Highland's product range beyond its core floating-rate and credit offerings.
Marketing campaigns
- 2018George W. Bush Presidential Center public-program endowment
United States
Highland provided a $10 million endowment to support a series of public programs at the George W. Bush Presidential Center, where the firm was also a founding benefactor.
Outcome. The endowment was designated to support the center's public programming.
Brand decisions
2019
Chapter 11 restructuringOtherBackground
Financial and operational difficulties led Highland to seek court protection.
Action taken
Highland Capital Management filed for Chapter 11 bankruptcy protection in October 2019.
Aftermath
The filing initiated a court-supervised restructuring and wind-down and ended the firm's operation in its previous independent form.
2005
Acquisition of ING Capital ManagementM&ABackground
Highland pursued international expansion and sought a presence in the European investment-management market.
Action taken
Highland acquired ING Capital Management.
Aftermath
The deal marked Highland's first move into Europe and expanded its international platform.
2004
Entry into the bank-loan mutual-fund businessM&ABackground
Highland sought to expand from alternative and credit management into a larger investment-company and mutual-fund platform.
Action taken
The firm acquired Columbia Management Advisors' bank-loan mutual-fund business and acquired NexBank.
Aftermath
The transactions broadened Highland's distribution and product capabilities in bank-loan funds.
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