James Dondero, Unlocks The Potential Of Corporate Donors

Beginning in 1993 James Dondero helped popularized the concept of single security based loans. Along with founding the private equity firm, Highland Capital Management, Dondero and his business partner, Mark Okada created a modernized version of corporate lending. Instead of pursuing non-secure financing, the firm relies on collateralized loan obligations (CLOs). CLO refers to structured loans, with longer terms, based on the pooling of funds. The purpose is to divide the loan ownership between the main lending institution and syndicated agents. These agents assume the high risks associated with the “syndicated loan” and in turn receive some form of collateral to back the lending. Read more at Wikipedia about James Dondero.

Since its inception, Highland Capital Management has progressively expanded its operations to include offices in Buenos Aires, New York, São Paulo, Seoul, and Singapore. One significant move made by James Dondero during the firm’s 26-year-old history involved moving the headquarters from Los Angeles, CA to Dallas, TX. The bulk of its bold billion dollar business is managing collateral based assets. As previously mentioned, these are value-based collateralized loan obligations. To determine the loan value, Highland Capital Management measures the performance of the collateral. Taking into consideration the entire portfolio and then measuring the internal rate of return (IRR) and the equity as if it were liquidated as a total asset.

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James Dondero has seen much success with his investment firm, Highland Capital Management. When he isn’t fulfilling his professional obligations, he generously donates time and money to several worthy programs and organizations. Benefactors include the Dallas Zoo, the Perot Museum of Natural Science, North Texas Charter Schools and the late Gary Sinise’ Foundation program, the Snowball Express and the George W. Bush Presidential Library.

Highland Capital, as a corporate donor also gives and works together with associated non-profit organizations, one specific alliance is with the Dallas Foundation. Its President and CEO, Mary Jalonick partnered with James Dondero to form an incorporated charity division, the Highland Dallas Foundation. The charity supports diverse causes such as assistance with finances and educational services for regional veterans and supporting challenging needs of civic organizations in the local area. Learn more about James Dondero at High Yield Credit.