Institutional Investors Politics & Regulation Tax & Legal

Houston Muni Pension suit adds to Highland drama

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The $2.5 billion Houston Municipal Employees’ Pension System has sued Highland Capital over the firm’s Highland Crusader Fund, which the pension fund claims was harmed due to not being managed in the best interests of the partnership and its limited partners.

The current legal action is not new for Highland, as a small group of investors in 2009 held mediation meetings with the firm in 2009 over deciding the equitable distribution of the Highland Credit Strategies fund’s remaining assets.

Highland’s embattled credit funds – Highland Crusader and Highland Credit Strategies – have sparked controversy since late 2008. A