Timing is a very important concept in the finance industry. For some reason, many of the world’s actions seem to be synchronized. Have you thought about how the May 2017 Highland Capital South Korea healthcare fund was established after Trump’s shut down of ObamaCare?
“Money Doesn’t Grow on Trees”
Isn’t it odd that the United States does not have universal health care, while most other nations do? The path for South Korea was somewhat similar to what ObamaCare was trying to accomplish, but it took place about 3 decades ago. In 1977, the South Korean government “mandated medical insurance for employees and their dependents in large firms with more than 500 employees.” The result was South Korean National Health Insurance (NHI).
In 1989, the NHI was expanded to cover all South Koreans. In many ways, the United States was trying to move to this final stage in 2016 with ObamaCare. President Trump shut down ObamaCare in 2017.
“ObamaCare & Highland’s HealthCare Fund”
Highland Capital Management has never run a healthcare fund, until it started its $147 million South Korean fund. One of its primary backers was the South Korea National Pension Service (NPS). Hence, both the public and private sectors are in full support. But there is a catch.
The South Korean fund is investing in North America too.
Generally, if you create a private hedge fund in one country, it will probably focus on that country, right? It is even more likely when the country’s pension plan is involved, like the NPS is. The fund would invest in local firms. But, that is not what this deal is necessarily about when you read the small print. Listen to what Highland Capital’s Matt Jameson managing director and co-head of private equity has said:
“The healthcare industry in the U.S. faces a number of disruptive forces that acutely affect companies in the middle market.”
Whereas, South Korea is rising, instead of investing in their country’s own healthcare development, the nation is investing in the development of the United States. This seems odd and a band-aid meant to save lost ObamaCare funding.