Move over China, Brazil, Russia and South Africa. Investors that once poured millions into those countries are now helping European companies come alive again. Europe has been overlooked by investors the last few years because there was more money to be made in emerging markets. But those markets are all falling apart economically, and investors have pulled the plug on many of the assets they thought would be profit generators in those countries.
Some investment firms have always believed in the innovations that come out of Europe. One of those firms, Highland Capital Management invested in Europe 20 years ago and the company still has assets under management there. Highland Capital Management was founded in 1993 my Jim Dondero and Mark Okada. One of the first investments the company made was in a European startup, and the Dondero has never regretted that investment.
Highland Capital Management is a Dallas-based investment firm that has more than $22 billion assets under management. Co-founder Jim Dondero is an expert in alternative credit solutions and that expertise has helped the company win several awards over the years, and open offices around the world. Dondero likes to invest in healthcare related companies as well as energy and tech companies, but the investments the company has made in Europe have produced some excellent returns.
According to a recent article published by the Seattle Times more American investors are doing what Jim Dondero and Highland Capital have done in Europe. Google Ventures and Microsoft are investing or acquiring startup companies in London, Germany and Stockholm, and they believe those companies will be worth billions in a few years. Google has earmarked more than $125 million for European startups and Salesforce Ventures as well as venture capitalists in Europe are betting millions that these startup companies will perform as expected.
The Seattle Times article mentioned the fact that American investors are taking a chance on these startups because costs are lower and the management of the startups have experience and are very professional. Jim Dondero has no doubt that there is going to be a lot of money made from these European startups in the future because Highland Capital continues to make money from them.