​Latest Capital Raise Puts Preston Hollow Capital over $1 Billion

Dallas Business Journal

Latest capital raise puts Preston Hollow Capital over $1 billion

Jon Prior May 9, 2017, 2:35pm CDT

Dallas-based investment firm Preston Hollow Capital, which helped finance part of the Irving convention center hotel, has raised $335 million in a new round of funding, according to Chief Executive Jim Thompson.

The raise brings the three-year-old firm’s total committed equity to over $1 billion. “A billion dollars is a really nice waypoint in what will be a long road to go,” Thompson said in a recent interview. Preston Hollow invests in real estate, infrastructure, and economic developments that come with special tax incentives.

The firm also expanded its municipal securities trading desk last year. Institutional investors Stonepoint Capital and HarbourVest provided early equity for the firm. The latest capital raise sourced funding from investors who struck it rich on Silicon Valley investments, Thompson said, a new development for the PHC. Cash-strapped cities are turning more toward public-private deals to fund not just projects like the Irving hotel but to fill pot holes and other basic infrastructure, paying investors in future tax revenues from the developments.

Dallas is expected to use these deals more often. Mayor Mike Rawlings has said a bill that would require the city to pitch in more money to fill a funding gap for the police and fire fighter pension fund would lead to cuts in services and may sideline projects – making any use of private financing more attractive.

“I think they would rely more on them,” Thompson said. Jon Prior covers finance for the Dallas Business Journal.