News


Business Wire | Highland ERA Management LLC Resurrects Once Industry-Leading Investment Platform Specializing in Alternative Credit

April 21, 2022

Patrick Daugherty, former Partner, Senior CLO Portfolio Manager and Head of Distressed/Special Situations at Highland Capital Management, today announced he is partnering with former portfolio managers and award-winning Highland team members Kevin Rourke and Niles Chura to resurrect the once industry-leading alternative credit investing platform as Highland ERA Management LLC (“New Highland”).

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Dallas Business Journal | Ex-Highland Capital Partner Revives Alternative Credit Strategy Following Decade-long Legal Battle Close

April 13, 2022

Former Highland Capital Partner Patrick Daugherty is resurrecting an investment strategy he began two decades ago, as a 10-year legal battle recently resolved.

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Asset-Backed Alert | Highland Head Sets New Direction

April 8, 2022

Patrick Daugherty's planned resurrection of the Highland Capital brand is giving rise to an investment strategy that initially would see the Dallas operation veer away from its former identify as a collateral loan obligation issuer.

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Debtwire | Highland Turnaround Is Complete As Daugherty Takes Control of Affiliates

March 10, 2022

Highland Capital Management has struck an agreement with former partner Patrick Daugherty which results in Daugherty being awarded an ownership interest in the Highland platform, complete ownership of two Highland affiliates and a lump sum paymen

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IMN CLOs & Leveraged Loans Virtual Conference 2020 I Get to Know Your CLO Manager: Join Glacier Lake's Daugherty as moderator to a panel of industry experts discussing the challenges and opportunities in the current credit environment

June 16, 2020

Glacier Lake President and CIO Patrick Daugherty to be joined by Mark Mahoney, President and CIO of Gulf Stream Asset Management, and Peter Gleysteen, CEO and CIO of AGL, to discuss obstacles and opportunities in the current credit market.

The panel is schedule for Tuesday, June 16th at 9:00 AM (EST) with registration to the conference open to all at the following link: https://imnclosreg.hubb.me/

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Wall Street Journal | Highland Capital Management LP Co-founder Out Under Deal With Creditors

December 30, 2019

The founder of bankrupt hedge fund business Highland Capital Management LP is on his way out as part of a proposed settlement with the fund manager's unsecured creditors' committee.

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Creditflux | Highland Capital Management LP working to remove founder Dondero

December 9, 2019

Highland Capital Management will soon face a motion to appoint a Chapter 11 trustee from the US Trustee overseeing its case, in spite of the asset manager's efforts to reach a deal with its official unsecured creditors (UCC) on "a comprehensive change in debtors' management."

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OPAL CLO Summit 2019 | Investor Roundtable: Glacier Lake's Daugherty speaks about the current fulcrum tranche in CLO capital structures

December 9, 2019

Glacier Lake President and Chief Investment Officer Patrick Daugherty discusses the impact of credit downgrades and their impact on tranche values.

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Creditflux | Highland Capital Management LP bankruptcy moves to hostile territory

December 3, 2019

Sontchi ordered the change in venue despite HCMLP's objections, at the behest of HCMLP's unsecured creditor's committee and Acis Capital Management, HCMLP's former CLO platform. The change in venue paves a path for HCMLP's creditors to pursue litigation against HCMLP and remove its president and co-founder, James Dondero.

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Wall Street Journal | Highland Capital Management LP Loses Fight to Keep Bankruptcy in Delaware

December 2, 2019

Bankrupt fund manager Highland Capital Management LP lost its fight to keep its chapter 11 proceedings in Delaware. The founder of bankrupt hedge fund business Highland Capital Management LP is on his way out as part of a proposed settlement with the fund manager's unsecured creditors' committee.

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S&P LCD | Daugherty offers to serve as CEO of Highland Capital

October 22, 2019

Former Highland Capital Management, LP employees have proposed to step in and manage the firm following its Chapter 11 bankruptcy filing earlier this week.

Patrick Daugherty, who was the head of distressed investing and private equity at Highland Capital until 2011 and is currently president and chief investment officer at Glacier Lake Capital Advisors, has offered for his team to step in if necessary, he told LCD.

"I feel there is a solid platform with good people that just need the leadership to allow them to get back to focusing on investing, all while staying in Dallas," said Daugherty.

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Creditflux | Highland LP's bankruptcy...hunt for assets begins

October 21, 2019

"If necessary, I have organized a management team consisting of former Highland partners and employees to operate Highland on a post-emergence basis," said Patrick Daugherty, a former partner at Highland and HCMLP's second largest unsecured creditor. Daugherty is president and chief Investment officer of Glacier Lake Capital Advisors. "I believe we can work collaboratively with existing creditors to accomplish a full recovery for all."

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Wall Street Journal | Highland Capital Management LP Creditor Likely to Press for Ch. 11 Trustee

October 18, 2019

"Mr. Dondero for far too long has played a dangerous litigation game and the chickens have finally come home to roost," Ms. Patel said.

"The overwhelming body of evidence," she said, "is that Mr. Dondero is not worthy of placing the trust of the fate of 70-plus employees and hundreds of millions of dollars of creditors' claims in his hands to do as he wishes."

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Wall Street Journal | Highland Capital Management Files for Bankruptcy

October 16, 2019

Mr. Daugherty, once one of Mr. Dondero's lieutenants, has been fighting with his employer in court since his departure in 2011. Mr. Daugherty won an award that he has been trying o collect since 2014.

"I have been fighting Highland and Dondero for eight years to redeem my name and get the compensation they took from me," Mr. Daugherty said. "I look forward to working with other creditors to make everyone whole."

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OPAL Summit 2018 Recap | You know the end is near when denial transitions to desperation

November 28-30, 2018

  • Signs of manager instability:
    • Strategy of asset "gathering" in contrast to quality "investing"
    • High partner and employee turnover
    • "Look at us give", the Enron way - attempts to distract from poor performance such as over emphasizing unrelated acts of philanthropy
  • Identifying the misalignment of interests between managers and investors:
    • Fee reductions - not necessarily a benefit to investors
    • "Swing for the fences" portfolios - what is the manager's downside?
    • In-house legal teams operated as profit centers - for whom do the "Yes-men" work?
    • "The Boys from Brazil" syndrome - genetic replication of a flawed donor
  • Maximizing the value proposition to Investors:
    • Identify the fulcrum security
    • Shift the power from Sellers (asset managers) to Buyers (investors)
    • Dissect the structure, follow the money
    • Tenacious pursuit of value: A - "always", B - "be", C - "collecting"
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S&P LCD | Patrick Daugherty cautions about the degradation of Leveraged Loan quality

October 31, 2018

Private equity firms are continuing to find new ways to potentially seize assets from first lien debtors, and as investors fail to push back in mass, fears are growing that these new lows in investor protections could become more commonplace.

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S&P Global Market Intelligence | How Portfolio Managers are Handling the Risks Associated with Today's Current Loan Market

October 29, 2018

Portfolio managers are demonstrating dangerous late cycle behavior as they reach for risky investments while competing to grow assets under management. This cycle's proliferation of "covenant-lite" and "collateral-lite" loan assets are likely to negatively impact recovery rates during the next economic downturn.

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OPAL CLO Summit 2017 | Investor Roundtable: A discussion regarding drivers for future returns of CLO equity

December 4, 2017

Glacier Lake President and Chief Investment Officer Patrick Daugherty discusses drivers for future returns of CLO equity at investor roundtable.

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IMN | Managing the portfolio in times of uncertainty: Trading loan assets in a challenging environment

May 17, 2016

Glacier Lake President and Chief Investment Officer Patrick Daugherty speaks on the challenges of managing a credit portfolio during uncertain times.

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Creditflux | Credit Symposium 2016: CLO relative value - how bad is it really going to be for CLO junior tranches?

May 4, 2016

The secondary market continues to price junior CLO tranches at distressed levels. Is that a fair valuation or a screaming buy? The panel discussion featured Patrick Daugherty, Glacier Lake Capital; Matthew Layton, Pearl Diver Capital; Amir Vardi, CSAM.

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Creditflux | First to launch innovative credit investment vehicle

February 11, 2016

A team of credit veterans led by ex-Highland Capital Management Partner Patrick Daugherty and Portfolio Manager Kevin Rourke is planning a unique fund which will have the ability to provide third-party risk retention financing to US CLOs.

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