Highland Capital, HarbourVest Ok’d to Settle $300 Million Claim

Bankrupt Highland Capital Management LP won court approval of its settlement with private equity firm HarbourVest Partners LLC over what HarbourVest said was a $300 million claim.

The settlement resolves HarbourVest’s allegations of fraud and other wrongdoing that allegedly drained the value of its $80 million investment in Acis Loan Funding Ltd., a Highland fund later rebranded as Highland CLO Funding.

Judge Stacey G. C. Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas approved the agreement at a hearing Thursday.

Under the deal, HabourVest agreed to transfer its interest in Highland CLO Funding to a separate ...