Plan of Distribution Approved for Highland Crusader Fund

DALLAS – Highland Capital Management, L.P. (“Highland”), a SEC‐registered investment adviser with approximately $23 billion of assets under management, announced today that a plan to distribute the assets of the Highland Crusader Fund (“fund”) was approved overwhelmingly by approximately 86% of investors.  Highland will remain the fund manager.

“We are pleased that the investor-led distribution plan received vast support and we will diligently execute the plan.  This investor vote frees Highland to distribute fund assets, including approximately $350 million in cash immediately and the remaining $1.3 billion, which we believe has material upside, over the next three years,” said John Honis, partner at Highland.  “We firmly agree with our investors that this plan will deliver the most value to all parties.”

“The decision to wind-down the Crusader fund during the depths of the global financial meltdown was difficult, but we believe it was the right decision,” said James Dondero, co-founder and President of Highland.  The wind-down process provided time for the prudent disposition of illiquid assets, and has helped the fund nearly double in value over the last two years.  In support of the fund, Highland waived millions in management fees and recovered significant amounts from counterparties for egregious actions during the global financial crisis.

The Crusader plan of distribution follows a similar agreement for the Highland Credit Strategies Fund, approved earlier this year.  Together, this completes all wind-down processes begun by Highland during the global financial crisis, which affected some of the firm’s hedge funds, a small portion of the firm’s overall business.  Also noteworthy is that Houston Municipal Employees Pension System consented unconditionally to the distribution plan, without supplemental consideration.  Additionally, this distribution plan provides full releases for Highland and its employees.

About Highland Capital Management, L.P.

Highland Capital Management, L.P. is a SEC-registered investment adviser with approximately $23 billion of assets under management. It is one of the largest and most experienced global alternative credit managers, specializing in bank loans, high yield credit, distressed debt, structured products, real assets, and long-short equities.

Highland’s diversified client base includes public pension plans, foundations and endowments, corporations, financial institutions, fund of funds, governments, high net worth individuals, and mutual fund investors. To best meet the different goals of these investors, Highland offers a variety of product types, including credit funds, private equity-style funds, managed separate accounts, hedge funds, retail mutual funds, and collateralized loan obligations (CLOs).

Highland is headquartered in Dallas, Texas and maintains offices in New York, London and Singapore.