Three hedge funds managed by Highland Capital Management have reached a settlement with Deutsche Bank pertaining to the funds' suit against Deutsche Bank and Deutsche Bank's suit against such funds, filed in October and November 2008.

The terms of the settlement are confidential.

"We are pleased that we were able to come to a mutually satisfactory agreement with Deutsche Bank regarding this dispute. As a staunch advocate of our investors' interests, we reached a mutually beneficial financial resolution for our funds. At Highland, we are focused on leveraging our vast credit expertise to maximise the significant opportunities available in today's markets and delivering on the investment needs of our clients," says Jim Dondero, Highland’s president.

Highland Capital Management is an SEC-registered investment adviser with USD24.8bn of assets under management. It is one of the largest global alternative fixed income managers, specialising in bank loans, high yield credits and structured products.